Making Tax Digital for Income Tax Self Assessment (MTD ITSA) is the biggest change to the UK tax system in years — and it will affect thousands of self-employed individuals and landlords. From April 2026, anyone earning over £50,000 will be required to keep digital records and submit quarterly updates to HMRC. If your income is above £30,000, you’ll be included from April 2027.
If you’re still using spreadsheets or paper records, now is the time to prepare.
What is Making Tax Digital for Income Tax?
MTD for Income Tax is part of HMRC’s plan to modernise the tax system. Instead of submitting one annual tax return, you’ll be required to:
Keep accurate digital records of income and expenses
Send quarterly updates to HMRC using approved accounting software
Complete an End of Period Statement (EOPS) and Final Declaration
This shift is designed to reduce errors, make tax more transparent, and help individuals plan ahead financially.
Who Does It Apply To?
From 2026 onwards, HMRC will gradually roll out Making Tax Digital for Income Tax (MTD ITSA), starting with those earning higher levels of income. The rules will apply in stages, depending on how much you earn and the source of your income:
- Self-employed professionals earning over £50,000 (from April 2026): If you run your own business and your trading income is above this threshold, you will be required to keep digital records and submit quarterly updates under MTD. This applies whether you’re a sole trader, freelancer, or contractor.
- Landlords with rental income over £50,000 (from April 2026): If your rental income (before expenses) exceeds £50,000 per year, you’ll need to follow the same rules. This includes those with multiple rental properties, holiday lets, or mixed-use portfolios.
- Self-employed individuals and landlords earning over £30,000 (from April 2027): The scheme will then be extended, bringing thousands more into the MTD system. If your income sits between £30,000 and £50,000, you should begin preparing early to avoid a last-minute rush.
If you fall into any of these categories, Making Tax Digital compliance will be mandatory. This means adopting HMRC-approved software, keeping accurate digital records, and sending quarterly submissions on time. Preparing now will help you transition smoothly and avoid penalties when the rules take effect.
Tip: Even if your income is currently below the £30,000 threshold, it’s wise to start using digital record-keeping software now. Doing so means you’ll already be compliant if your income grows or if HMRC lowers the entry threshold in the future.
Why Prepare Now?
Waiting until the deadline could leave you scrambling. By acting early, you can:
- Transition smoothly to MTD-compatible software
- Avoid penalties and interest from late submissions
- Stay in control of your cashflow with real-time tax insights
- Free up time by working with an accountant who handles it all for you
Tip: Choosing the Right MTD Software
Not all accounting software is HMRC-approved for Making Tax Digital. Popular options such as Xero, QuickBooks, and FreeAgent are fully compatible and widely used by self-employed professionals and landlords. The best choice will depend on the size of your business, the complexity of your records, and how much support you want from your accountant.
At Odiri Tax Consultants & Accountants, we can recommend the most cost-effective software for your needs, set it up for you, and provide training so you feel confident using it.
How Odiri Tax Consultants Can Help
At Odiri Tax Consultants & Accountants, we make the switch to MTD simple. Our expert team will:
Set up and manage your digital record-keeping
Handle quarterly submissions directly with HMRC
Provide clear tax advice tailored to your business
Ensure you stay fully compliant and avoid unnecessary stress
Don’t Wait – Get MTD Ready Today
Making Tax Digital is not optional — but with the right support, it doesn’t need to be overwhelming.
📞 Contact Odiri Tax Consultants today for initial consultation and discover how we can make MTD for Income Tax work for you.
👉 Get in touch with us now
How Odiri Tax Consultants & Accountants Can Help
At Odiri Tax Consultants & Accountants, our team is ready to explain your Simple Assessment notice in depth, making the figures and computations clear to you. We can:
Communicate with HMRC on your behalf to swiftly and effectively address any concerns.
Offer crucial guidance on managing upcoming tax duties and assist you in organising your financial documents properly, so you’re always ready for any future assessments or notices from HMRC. This forward-thinking method can reduce both time and stress during tax time.
Assist in finding potential tax savings or allowances you might overlook, enhancing your financial standing.
Our skills go beyond the Simple Assessment; we deliver thorough tax planning advice, customised to your specific needs. Reach out to us today.
