Making Tax Digital for Income Tax Self Assessment Is Coming in April 2026 – Are You Ready?

The UK tax system is entering a new digital era, and if you’re a sole trader, freelancer, or landlord, the changes could significantly impact how you manage your taxes.

From April 2026, Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) will become mandatory for thousands of individuals across the UK — starting with those earning over £50,000 annually from self-employment or property income.

At Sigma Accounting, we’re here to help you understand exactly what MTD for ITSA means, who it affects, and how to prepare for a smooth and stress-free transition.

What Is MTD for ITSA?

MTD for ITSA is HMRC’s new way of collecting income tax information. Instead of filing one Self Assessment return each year, affected individuals will need to:

• Keep digital records of income and expenses using HMRC-approved software

• Submit quarterly updates to HMRC (every three months)

• Submit a final declaration at the end of the tax year to confirm annual income and adjustments

The goal is to make tax reporting more accurate and reduce the risk of errors or late submissions.

Who Will Be Affected?

From April 2026, MTD for ITSA will apply to:

• Self-employed individuals earning over £50,000 per year

• Landlords with property income above £50,000 per year

From April 2027, it will extend to those earning over £30,000.

If your income is below £30,000, you won’t need to comply yet, but HMRC has made it clear that the scope could widen in future. So preparing early is a smart move.

What Does MTD for ITSA Mean for You?

If you fall within the threshold, you’ll need to:

• Use MTD-compliant software to keep digital records of your business or rental income

• Send updates to HMRC every quarter, reporting your income and expenses

• Submit a final declaration once a year to confirm your total income and apply any final adjustments

This means five submissions a year, compared to the single annual Self Assessment tax return.

While this may seem overwhelming, it doesn’t need to be — especially with the right support.

We’re Here to Support Self-Employed Individuals and Landlords

At Sigma Accounting, we’ve already helped many clients prepare for the digital future of tax. Our team specialises in working with self-employed individuals, landlords, and small business owners — and we make it our mission to simplify the MTD process for you.

Here’s how we can help:

✅ Help you choose and set up MTD-compatible software
✅ Offer training and ongoing support to manage your digital records
✅ Handle quarterly updates and final declarations on your behalf
✅ Provide expert tax advice so you stay compliant and stress-free

Whether you’re tech-savvy or still using spreadsheets, we’ll meet you where you are and guide you through every step.

Why You Should Start Preparing Now

The April 2026 deadline may seem a way off, but transitioning to digital tax reporting takes time. Starting now gives you:

• Time to find the best software for your business

• Space to adjust your bookkeeping habits

• Confidence in managing digital tax submissions

• Assurance you’ll be fully compliant and avoid HMRC penalties

The earlier you start, the easier your transition will be.

Take the First Step Today

If you're a self-employed individual or landlord earning over £50,000, the time to prepare for MTD for ITSA is now. Let us take the stress out of digital tax reporting and give you peace of mind.

📞 +44 7907 291967
📧 office@sigma-accounting.co.uk
🌐 www.sigma-accounting.co.uk

Or book your free MTD consultation and get personalised advice on what to do next.

MTD for ITSA doesn’t have to be complicated. With the right guidance, it can be a seamless and positive change for your business. Let’s get started together