Making Tax Digital for Income Tax Self-Assessment becomes mandatory for sole traders and landlords with income above the relevant threshold from April 2026. This guide explains what MTD for ITSA means in practice, what changes it introduces, how to get ready, and why working with a professional accounting firm makes the process significantly easier.
A digital tax revolution is coming
April 2026 marks a significant shift in how sole traders and landlords report their income to HMRC. Instead of one annual self-assessment return, affected businesses will need to submit quarterly digital updates and a final end-of-period statement.
With the right preparation and support from ITS Accounting, this challenge can become an opportunity to get a much clearer and more timely picture of your financial position throughout the year.
What is MTD for Income Tax and why is it becoming mandatory?
MTD for Income Tax Self-Assessment is an HMRC initiative that requires eligible businesses and landlords to keep digital records and report income quarterly through HMRC-compatible software. The aim is to reduce errors and give HMRC a more real-time view of tax liabilities.
Main goals of MTD for Income Tax:
Reducing tax errors and the overall tax gap
Modernising and digitising the tax system
Giving businesses a clearer view of their tax position throughout the year
MTD for Income Tax 2026 timeline
April 2026 – sole traders and landlords with gross income above 50,000 GBP.
April 2027 – those with gross income above 30,000 GBP.
From 2028 – those with gross income above 20,000 GBP (subject to confirmation by HMRC).
How to prepare your business for MTD for Income Tax
Check whether you are in scope for April 2026 based on your gross income from self-employment or property.
Choose HMRC-compatible accounting software and set up digital record-keeping.
Understand the quarterly update schedule and what each submission requires.
Work with ITS Accounting to manage your submissions and ensure full compliance from day one.
Why choose ITS Accounting in the MTD era?
Tax planning, Making Tax Digital compliance, full bookkeeping and accounting services, and financial reporting. We handle everything so you can focus on your business.
Do not wait until the deadline
MTD for Income Tax is coming and early preparation makes all the difference. Contact ITS Accounting today to find out how we can help your business make the transition with confidence.