Making Tax Digital for Income Tax: Self-Employed and Landlord Tax Changes 2026

Key Points

Making Tax Digital for Income Tax (MTD ITSA) begins in April 2026 – Self-employed individuals and landlords in the UK above certain income thresholds will be required to use digital tax reporting. This phased rollout starts with those earning over £50,000 in April 2026, then over £30,000 in April 2027.
Quarterly HMRC reporting will replace the annual tax return – Under these new HMRC quarterly reporting requirements, you’ll need to keep digital records and submit updates every three months, using MTD-compatible software, with a final year-end declaration to complete your tax filing.
Major changes for self-employed taxpayers in the UK – These self-employed tax changes in the UK mean sole traders must adapt to digital record-keeping and tax submission. Sole trader digital tax reporting will become mandatory, ending the old paper-based or yearly Self Assessment process.
Landlord tax changes in 2026 – Landlords with rental income will also be impacted. From 2026, many landlords must follow the same MTD rules, digitally reporting rental income quarterly.
How to prepare for MTD compliance – To get ready, start maintaining your books with HMRC-approved accounting software and familiarize yourself with quarterly deadlines. Organize all income and expenses digitally and consider voluntary early sign-up to MTD to practice.
Accountax can help you navigate MTD – Accountax (www.acountax.co.uk) is a team of experienced accountants in London and among the best tax advisors in London for MTD compliance. We can set up your digital record-keeping, ensure you meet every deadline, and keep your tax affairs HMRC-compliant. Contact Accountax for personalized assistance and a smooth transition to digital tax reporting.

What is Making Tax Digital for Income Tax (MTD ITSA)?

Making Tax Digital for Income Tax Self Assessment (MTD ITSA) is a major HMRC initiative transforming how income taxes are reported. Instead of the traditional single annual Self Assessment tax return, taxpayers will need to use digital tools to report income throughout the year.
Under MTD for Income Tax, if you are self-employed or a landlord above the threshold, you will be required to do the following:

Keep digital records of all your business income and expenses.
Submit quarterly updates to HMRC.
Finalize your tax year with an end-of-period statement (a final declaration to confirm all data and calculate your tax bill).
Use MTD-compatible software to maintain records and send submissions electronically to HMRC.

Self-Employed Tax Changes in the UK

For self-employed individuals (including sole traders) in the UK, MTD ITSA represents a significant change in tax compliance.

Who needs to comply?

6 April 2026: Self-employed individuals with an annual business income over £50,000 must follow MTD for Income Tax.
6 April 2027: Those with income between £30,000 and £50,000 will be included.
Below £30,000: Exempt for now, but may be included in later phases.

Landlord Tax Changes 2026

If you are a landlord earning rental income, 2026 will bring major landlord tax changes for you as well.

April 2026: Landlords with annual rental income over £50,000 must comply with MTD ITSA.
April 2027: Landlords earning over £30,000 annually in rent will be included.
Landlords under £30,000 in income are exempt for now.

Preparing for MTD: Meeting HMRC’s Quarterly Reporting Requirements

Switch to Digital Record-Keeping Now – Begin using an MTD-compatible accounting software like Xero, QuickBooks, or Sage.
Organize and Update Your Records Regularly – Update books continuously to prepare for quarterly submissions.
Know Your Deadlines – Quarterly updates must be submitted on time, plus a final end-of-year submission.
Consult with a Tax Professional – A professional accountant can guide you through the process.
Consider a Test Run – HMRC allows voluntary sign-ups for MTD ITSA before it becomes mandatory.

Accountax: London Accountants for MTD Compliance

Adapting to MTD ITSA may seem daunting, but you don’t have to face it alone. Accountax is here to help. As London accountants specialized in small business and landlord taxation, we have been following the MTD rollout closely and are fully prepared to assist clients with the transition.

How can Accountax help you?

We offer end-to-end support for MTD compliance.
Our experts will set up your bookkeeping on MTD-compatible software.
We provide training and guidance on quarterly submissions.
We handle HMRC filings for you as your agent.
We keep you informed of any HMRC updates and ensure you never miss a deadline.

Ready to get started? Contact Accountax today and arrange a free consultation. As trusted London accountants for MTD compliance, we’ll walk you through the steps and create an action plan that ensures you’re fully prepared for the 2026 tax changes.

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