If you’re self-employed and/or a landlord in the UK, major changes are coming that will affect how you manage your finances and taxes.
It’s called Making Tax Digital for Income Tax Self Assessment (MTD for ITSA), and from April 2026, it will become mandatory for many taxpayers.
The good news? With the right preparation and professional support, this can be a smooth (and even beneficial) transition.
📌 Who Needs to Pay Attention?
✅ From April 2026 — If your total income from self-employment and/or property exceeds £50,000, you must follow MTD rules.
✅ From April 2027 — Those earning between £30,000 and £50,000 will also be required to comply.
✅ From April 2028 — The government plans to extend MTD to individuals earning over £20,000.
✅ Under £20,000 — Requirements are still under review, but early preparation is strongly recommended.
(Income thresholds are based on gross income from self-employment and property combined, not profit.)
🧾 What Will Change?
You’ll no longer file just one tax return each year. Instead:
• You must keep digital records of income and expenses.
• You’ll send quarterly updates to HMRC (every 3 months).
• You’ll submit an End of Period Statement (EOPS) for each business or property.
• You’ll complete a final declaration confirming all income and claiming reliefs.
All submissions must be made using HMRC-compatible software. Paper records alone won’t meet the requirements (though spreadsheets may be used if digitally linked to approved software).
👩💼 How Your Accountant Can Help You
This may sound like a big shift, but your accountant can take most of the burden off your shoulders.
✅ 1. Explain What MTD Means for You
They’ll review your income sources, confirm when you must comply, and plan your transition.
✅ 2. Help You Go Digital
They’ll recommend suitable software, set up systems, and provide training — or manage the process for you.
✅ 3. Keep You Compliant
They’ll submit updates on time and help you avoid penalties.
✅ 4. Improve Financial Visibility
Digital records provide real-time insights into income, expenses, and tax liabilities, helping you make better business decisions.
🗓️ Key Dates to Remember
• Now — Speak to your accountant and start preparing
• April 2026 — Mandatory for income over £50,000
• April 2027 — Applies to £30,000–£50,000 income
• April 2028 — Planned extension to income over £20,000
• Quarterly — Regular digital updates to HMRC required
💬 Final Thoughts
You don’t need to be a tech expert. You just need the right accountant who understands your business and can guide you through the transition.
Making Tax Digital is here to stay. But with the right support, it doesn’t have to be stressful. Start preparing now.
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