From April 2026, Making Tax Digital (MTD) for Income Tax Self Assessment (ITSA) will apply to sole traders and landlords with annual gross income over £50,000. This marks a significant shift in how personal income tax records are reported to HMRC.
What Is Changing?
Under MTD for ITSA, affected taxpayers must:
1) Maintain digital records using HMRC-approved software;
2) Submit quarterly income and expense updates to HMRC;
3) File a final end-of-year declaration, replacing the traditional Self Assessment tax return.
Who's Affected and When?
4) April 2026: Individuals earning over £50,000 (combined from sole trade and property);
5) April 2027: Threshold lowers to £30,000.
General partnerships and those below the threshold remain outside the regime-for now.
Why Act Now?
While the deadline may seem distant, early preparation will help minimise disruption. Adopting MTD-compliant software and adjusting your processes now can ensure a smooth transition.
At UMC Accountants, we’re already helping landlords and self-employed clients prepare for these changes-ensuring systems are in place and compliance is maintained.
Need help getting ready for MTD? Get in touch to discuss how we can support your digital record-keeping and quarterly reporting.
What Is Changing?
Under MTD for ITSA, affected taxpayers must:
1) Maintain digital records using HMRC-approved software;
2) Submit quarterly income and expense updates to HMRC;
3) File a final end-of-year declaration, replacing the traditional Self Assessment tax return.
Who's Affected and When?
4) April 2026: Individuals earning over £50,000 (combined from sole trade and property);
5) April 2027: Threshold lowers to £30,000.
General partnerships and those below the threshold remain outside the regime-for now.
Why Act Now?
While the deadline may seem distant, early preparation will help minimise disruption. Adopting MTD-compliant software and adjusting your processes now can ensure a smooth transition.
At UMC Accountants, we’re already helping landlords and self-employed clients prepare for these changes-ensuring systems are in place and compliance is maintained.
Need help getting ready for MTD? Get in touch to discuss how we can support your digital record-keeping and quarterly reporting.
