Making Tax Digital for Income Tax: What It Means and Who Needs to Comply
Making Tax Digital for Income Tax Self Assessment (MTDITSA) is on the horizon.
From April 2026, many sole traders and landlords will need to change how they report income to HMRC.
This guide breaks it down simply: who it affects, what changes, and how to prepare.
What Is Making Tax Digital for Income Tax?
Making Tax Digital for Income Tax is part of HMRC’s plan to modernise the tax system. It means moving away from annual paper or online tax returns, and instead:
- Keeping digital financial records
- Sending quarterly income and expense summaries to HMRC
- Submitting an ITSA Annual return to HMRC through MTD compatible software
All of this must be done using MTD-compliant software.
Who Will Be Affected First?
From 6 April 2026, MTD for ITSA applies to:
- Self-employed individuals with income over £50,000 per year
- Landlords with rental income over £50,000 per year
From April 2027, the threshold lowers to £30,000. Partnerships and others will follow in future phases.
Even if you already file your tax return online, you’ll still need to switch to the new system if your income exceeds the thresholds.
What Will Change for You?
Instead of one annual tax return, you’ll need to:
- Use compatible software to record income and expenses
- Send a summary to HMRC every quarter
- Submit your End of Period Statement and Final Declaration annually
This means more frequent reporting, but also better visibility of your tax position throughout the year.
Why It’s Worth Preparing Now
The deadline may seem far off, but switching early brings benefits:
- Time to get used to digital record-keeping
- Easier to spread the cost and learning curve
- Avoid last-minute panic in 2026
- Work with your accountant (like me!) to make the transition smooth and stress-free
How I can help you get ready for Making Tax Digital for Income Tax
As an AAT Licensed Accountant with years of MTD experience, I can help with:
- Checking when MTD applies to you
- Choosing and setting up software like QuickBooks or FreeAgent
- Showing you how to use it, or managing it for you
- Submitting all required quarterly and annual updates
📞 Let’s chat now – don’t wait until 2026.
Need Help Preparing for Making Tax Digital for Income Tax?
Get ahead of the curve with expert guidance and ongoing support.
📞 Call: 07867 410938
📧 Email: ross@moorefinancialmanagement.wales
Helping you with Making Tax Digital for Income Tax
Contact us now if you need help with your Self Assessment Tax Return
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We can help you with this and much more
Get ready for success with Moore Financial Management
We can help you with all of your compliance obligations such as:
- Self Assessment Tax
- Making Tax Digital
- Corporation Tax
- Filing Accounts
- VAT
- Payroll and Pensions
But also the things you really need to increase the chances of your business being a success
- Management Accounts
- Cashflow Reporting & Forecasting
- Budgets
- Real Time up to the minute information
These are the things that add value and the information you need in order to make the correct business decisions
If you’re not confident with any of this or don’t have the time, getting a licensed accountant to do it for you can actually save you money. It can free up your valuable time which you can use to concentrate on your business. You can also benefit by knowing it has been done correctly and on time.
Mistakes can be costly.
As can missing deadlines.
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