Any farmers who either operate as a sole trader or whose personal rental income exceeds £50,000 will have to do MTD quarterly reporting. There is a temporary exemption available for farmers for this tax year, if they haveclaimed, or expect to claim, farmers’ averaging relief. Next stepsCompliance means keeping digital records in MTD compliant software such as Xero or Sage, and submitting four quarterly updates, with deadlines on the 7 August, November, February and May. HMRC are taking a slower approach with farmers for 26/27, so they are unlikely to issue penalty points for late quarterly updates, but there will still be penalties for late final declarations, late payments orinadequate records. Nick Park is the director of Cwmbran-based Accountants & Tax Advisors,Green & Co, and a member of the Country Landowners Association (CLA) National Taxation Committee.