If you’re self-employed or a landlord in the UK, a major change is coming that could impact how you manage your finances and taxes.
It’s called Making Tax Digital for Income Tax Self Assessment (MTD ITSA), and from April 2026, it will become mandatory for many people.
The good news? You’re not alone. With the right support, this can be a smooth (and even beneficial) transition.
📌 Who Needs to Pay Attention?
i. From April 2026: If your total income from self-employment or property is over £50,000, you’ll need to follow the MTD rules.
ii. From April 2027: If you earn between £30,000 and £50,000, you’ll also be required to comply.
iii. Under £30,000? HMRC has delayed requirements for now, but it’s wise to start preparing early.
🧾 What Will Change?
i. You’ll no longer file just one tax return per year. Instead:
ii. You’ll need to keep digital records of your income and expenses.
iii. You’ll send quarterly updates to HMRC (every 3 months).
iv. At the end of the year, you’ll submit a final declaration confirming your income and claiming any reliefs.
This will all need to be done using HMRC-approved software, spreadsheets and paper records won’t be enough.
👩💼 How Your Accountant Can Help You
This might sound like a lot, but your accountant can take the weight off your shoulders. Here’s how:
✅ 1. Explain What MTD Means for You
Your accountant will look at your income and tell you when you need to comply, and what changes you’ll need to make.
✅ 2. Help You Go Digital
They’ll recommend easy-to-use, affordable software, and even show you how to use it (or handle it for you!).
✅ 3. Keep You Compliant
They’ll make sure your updates are submitted on time, every time, avoiding late filing penalties.
✅ 4. Make Your Finances Easier to Manage
Once you’re digital, you’ll have better visibility over your income, expenses, and tax liabilities throughout the year, not just in January.
🗓️ Key Dates to Remember
Now – Talk to your accountant and start preparing
April 2026 – MTD becomes mandatory for income over £50,000
April 2027 – MTD expands to £30,000–£49,999 income earners
Every 3 months -Quarterly updates to HMRC required
💬 Final Thoughts
You don’t need to be a tech expert to get this right; you just need the right accountant who understands your business and can guide you through the process.
Making Tax Digital is here to stay. But with the right help, it doesn’t need to be stressful. Talk to your accountant now to get ready.
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