From 6 April 2026, HMRC begins rolling out the next stage of Making Tax Digital for Income Tax (MTD for ITSA). It’s a significant shift in how sole traders and landlords keep their records and report their income—and it’s something every affected business should start preparing for now.
Who Will Be Affected from April 2026?
The first group required to join MTD will be:
- Sole traders with gross self‑employment income over £50,000
- Landlords with rental income over £50,000
- Anyone whose combined self‑employment and property income exceeds £50,000
It’s important to note that this threshold is based on income, not profit.
What Will Change Under MTD?
MTD introduces three core requirements:
1. Digital Record‑Keeping
You’ll need to keep your income and expenses in HMRC‑compatible software. Paper records and spreadsheets won’t meet the new rules.
2. Quarterly Updates
Instead of one annual tax return, you’ll send four quarterly summaries to HMRC. These are simple updates, not full tax returns, but they must be submitted on time.
3. A Final Declaration
This replaces the traditional Self Assessment return. It brings together all your information for the year and confirms your final tax position.
Key Dates for Your Diary
- 6 April 2026 — MTD becomes mandatory for those earning £50,000+
- 7 August 2026 — First quarterly update due
- 7 November 2026 — Second quarterly update
- 31 January 2027 — Final Self Assessment under the old system (for 2025/26)
- 7 February 2027 — Third quarterly update
- 7 May 2027 — Fourth quarterly update
How We Can Support You Through the Change
We can help you:
- Choose and set up the right MTD‑compatible software
- Keep your digital records accurate and compliant
- Submit quarterly updates on your behalf
- Prepare your year‑end Final Declaration
- Understand what MTD means for your specific situation
Our goal is to make the transition smooth and stress‑free, so you can focus on running your business.
Ready to Get Prepared?
If your income is likely to exceed the £50,000 threshold—or you’re unsure—now is the ideal time to start planning. Early preparation means fewer surprises and a much easier transition.
📞 Get in touch today to talk through what MTD means for you and how I can help you get ready:
👉 www.catherinebennettaca.co.uk