Making Tax Digital Income Tax April 2026
Making Tax Digital for Income Tax starts April 2026 for sole traders and landlords earning over £50,000. Find out what you need to do now — and how MBSC can help.
If you’re a sole trader or landlord earning over £50,000 a year, Making Tax Digital for Income Tax (MTD for ITSA) is coming — and it starts in just weeks, from 6th April 2026.
This is one of the biggest changes to the UK tax system in years, and many business owners are still not ready. Here’s exactly what it means and what you need to do right now.
What Is Making Tax Digital for Income Tax?
Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) is HMRC’s programme to move tax reporting fully digital. Instead of filing one Self Assessment return per year, you will need to keep digital records of all income and expenses, submit quarterly updates to HMRC through approved software, file an End of Period Statement at the end of the tax year, and submit a final declaration replacing your current Self Assessment return. That means five submissions per year instead of one.
Who Is Affected From April 2026?
The April 2026 deadline applies to sole traders and landlords with gross income over £50,000 from self-employment or property — or a combination of both. From April 2027, the threshold drops to £30,000, bringing in many more businesses.
What Software Do You Need?
You must use HMRC-recognised software. Popular options include QuickBooks, Xero, FreeAgent, and Sage. Spreadsheets on their own will not be accepted unless you use compatible bridging software.
What Do You Need to Do Right Now?
Check if you’re affected by looking at your 2024/25 income figures. Choose your software and set it up before April. Start keeping digital records from 6th April 2026 at the latest. And speak to your accountant — we can help you choose the right software and set everything up.
How MBSC Can Help
At MBSC Accountancy & Consultancy Ltd, we are helping all our clients get MTD-ready before April. We can advise on the right software for your business, help you set it up, and manage your quarterly submissions on your behalf. Don’t leave it until the last minute
