MTD for Income Tax is Coming in April 2026 – Are You Ready?
From April 2026, HMRC is rolling out the next phase of its digital tax initiative – Making Tax Digital for Income Tax Self Assessment (MTD ITSA). This change will affect millions of self-employed individuals and landlords across the UK. If you earn over £50,000 from business and/or property income, you’ll need to comply with new digital reporting requirements.
Here’s what MTD for Income Tax means for you—and how our firm can help you stay compliant, organised, and stress-free.
What is Making Tax Digital for Income Tax?
Making Tax Digital (MTD) is a government initiative designed to simplify and modernise the UK tax system. It requires taxpayers to keep digital records and send updates to HMRC using approved accounting software.
MTD for Income Tax will replace the annual Self Assessment tax return with a new system of quarterly updates and a final declaration at the end of the year.
Who Will Be Affected from April 2026?
From April 2026, self-employed individuals and landlords with combined income over £50,000 per year will be required to:
- Keep digital records of income and expenses
- Use compatible accounting software
- Submit quarterly updates to HMRC
- File an End of Period Statement and Final Declaration annually
From April 2027, those earning over £30,000 will also be brought into the system.
What Are the Key Changes?
Here’s a breakdown of what MTD ITSA will require:
- Quarterly submissions: Income and expenses must be reported every 3 months
- End of Period Statement (EOPS): Finalises your income and any reliefs
- Final Declaration: Confirms your full tax position
- Digital-only records: Paper-based or manual spreadsheets will no longer be accepted
Why Is This Happening?
HMRC’s goal is to reduce errors, increase efficiency, and help taxpayers manage their finances better. Digital submissions are expected to:
- Improve accuracy
- Give real-time insights into tax liabilities
- Help businesses plan for tax payments
Challenges to Be Aware Of
The switch to MTD may be challenging, especially if:
- You are not currently using digital bookkeeping software
- You manage records manually
- You’re unsure about the new deadlines or requirements
That’s where our expert support comes in.
How Our Firm Can Help You Prepare
As Chartered Certified Accountants, we’re already helping clients prepare for MTD. Our services include:
- Software setup & training – We’ll help you choose and learn the right HMRC-approved software
- Quarterly bookkeeping – We handle your records and submit updates to HMRC
- Tax planning – Maximise deductions and allowances
- Ongoing support – Regular reminders and tailored advice
Whether you want full-service support or just help getting started, we’re here to make the transition smooth.
What Should You Do Next?
- Check your income – If you earn over £50,000, you’ll need to comply by April 2026
- Talk to us – We offer a free consultation to assess your readiness
- Start early – Early preparation ensures a smooth transition
Let’s Prepare Together
Making Tax Digital is a big change—but with the right help, it doesn’t have to be complicated.
Contact us today to find out how we can prepare your business for MTD and support you every step of the way.
