+44 7907 291967
HMRC is transforming the way self-employed individuals and landlords report their income, introducing a new digital system that requires more frequent reporting and better record keeping.
From April 2026, many taxpayers will need to follow these new rules. If you currently submit a Self Assessment tax return, it is important to understand how these changes will affect you and how to prepare.
Making Tax Digital for Income Tax Self Assessment is part of the UK government’s plan to modernise the tax system.
Under the new rules, taxpayers will be required to:
• Keep digital records of income and expenses
• Use MTD-compatible accounting software
• Submit quarterly updates to HMRC
• Submit a final declaration at the end of the tax year
These changes are designed to improve accuracy and give you a clearer view of your tax position throughout the year.
From April 2026, you will need to comply with MTD for ITSA if:
• You are self-employed or a landlord
• Your combined income exceeds £50,000 per year
From April 2027, this threshold will reduce to £30,000, bringing more taxpayers into the system.
One of the key changes under MTD is the introduction of quarterly reporting.
Each tax year (6 April to 5 April) is divided into four reporting periods:
• 6 April – 5 July → Deadline: 7 August
• 6 July – 5 October → Deadline: 7 November
• 6 October – 5 January → Deadline: 7 February
• 6 January – 5 April → Deadline: 7 May
In addition to quarterly updates, you must submit a final declaration by:
• 31 January following the end of the tax year
Staying on top of these deadlines is essential to avoid penalties.
Although MTD for ITSA becomes mandatory from April 2026, preparing early can make the transition much easier.
Starting now allows you to:
• Set up digital bookkeeping systems
• Understand the quarterly reporting process
• Keep accurate and organised records
• Avoid last-minute stress and potential penalties
Early preparation ensures your tax reporting is smooth and compliant from day one.
Many individuals are concerned that Making Tax Digital will increase their administrative workload.
At Sigma Accounting, we provide a simple and practical solution to manage your MTD obligations.
For a fixed fee of £20 per month, we will:
• Handle all quarterly submissions to HMRC
• Prepare and submit your final declaration
• Ensure full compliance with MTD requirements
• Provide ongoing support and guidance
Our aim is to make digital tax reporting straightforward, so you can focus on your business.
If you are self-employed or a landlord, it is important to understand how Making Tax Digital will affect you before the April 2026 deadline.
Sigma Accounting supports clients across the UK with preparing for MTD and managing their tax obligations efficiently.
+44 7907 291967
You can also book a free consultation to find out exactly how MTD for ITSA applies to you.
