Making Tax Digital for Income Tax: What It Really Means (And What You Should Do Now)

Making Tax Digital for Income Tax (MTD ITSA) is one of the biggest changes to the UK tax system in recent years — and understandably, it’s causing concern for many self-employed individuals and landlords.

Here’s what it actually means, without the jargon.

What is MTD ITSA?

MTD ITSA requires certain taxpayers to:

• keep digital accounting records

• submit quarterly updates to HMRC

• use HMRC-approved accounting software

• submit an annual final declaration

  
  

This replaces the traditional once-a-year Self Assessment process.

MTD ITSA is due to become mandatory from April 2026 for many self-employed individuals and landlords.

What MTD ITSA Is Not

Let’s clear up a few common concerns.

MTD ITSA does not mean:

• you’ll pay tax four times a year

• HMRC will tax you based on estimates

• you need to become an accountant

Quarterly submissions are updates, not tax bills.

Who Will Be Affected?

MTD ITSA will apply to:

• self-employed individuals above the income threshold

• landlords with qualifying rental income

If you’re unsure whether you’ll be affected, this is something an accountant can confirm for you well in advance.

What You Should Do Now

Even if MTD ITSA doesn’t apply to you yet, early preparation makes everything easier.

We recommend:

• reviewing your current record-keeping

• moving to compliant accounting software

• understanding what information HMRC will require

• getting professional support sooner rather than later

MTD is manageable — but only if it’s approached calmly and properly.

How We Can Help

We support clients with:

• MTD ITSA registration

• software setup and guidance

• quarterly submissions

• end-of-year final declarations

Our role is to ensure compliance without overwhelm.

If you’d like clear advice on how MTD ITSA affects you, get in touch to arrange a free initial consultation.