If you’re Self-employed or a Landlord earning over £50,000, the way you report your Taxes is about to change. From April 2026, you’ll be required to comply with Making Tax Digital for Income Tax Self-Assessment (MTD ITSA) , a new system designed to simplify and digitise Tax reporting.
At Grace Certified Accountants, we’re here to help you prepare with confidence. Here’s a breakdown of what MTD means for you, who needs to comply, and what steps you should take now.
Who Will Be Affected by MTD?
MTD will apply to:
– Self-employed individuals
– Landlords
– People with both Self-employment and Property income
If your combined income from Self-employment and/or property is £50,000 or more, you’ll need to comply from April 2026.
If your income is £30,000 or more, you’ll be required to comply from April 2027.
Important: HMRC will look at your income from the 2024/25 tax year (i.e., 6 April 2024 to 5 April 2025) to determine if you meet the threshold for the April 2026 mandatory registration requirement.
Watch our full video guide on how to prepare for MTD, including tips for choosing software and linking your business bank account.
How Will MTD Reporting Work?
Quarterly Reporting
You’ll need to submit income and expenses every quarter using MTD-compatible software (such as QuickBooks, FreeAgent, Xero, etc.).
| Period | Reporting Deadline |
| 1 April – 30 June | 7 August |
| 1 July – 30 September | 7 November |
| 1 October – 31 December | 7 February |
| 1 January – 31 March | 7 May |
Quarterly reports show estimated tax, not your final bill.
Final Declaration
After your final quarterly report, you’ll need to submit a Final Declaration (similar to the current Self Assessment) by 31 January following the tax year. This includes all adjustments and gives HMRC your actual tax liability.
No More Manual Submissions
You cannot submit via the Government Gateway manually under MTD. All updates must go through compatible software.
You won’t need to submit separate spreadsheets or manual records — your software will capture income and expenses automatically, as long as:
– You keep digital records
– You link your business bank account to the software
Tip: Simplify the Setup
To make your MTD setup smoother:
1. Open a business bank account
2. Receive all client payments into that account
3. Use the same account for all business purchases
4. Link the account to your MTD software
This ensures your income and expenses are tracked in one place — reducing stress and increasing accuracy.
Action Steps You Can Take Now
1. Review your 2024/25 income:
– Determine whether you exceed the £50,000 threshold
– Get your records in order while the tax year is still fresh
2. Start using MTD-compatible software:
– Choose one from the official gov.uk list HERE
3. Start keeping digital records:
– Use the software to track income, scan receipts, and issue invoices
Need Help Getting Ready?
MTD may sound daunting, but it’s meant to make tax reporting smoother and help you budget and plan better throughout the year.
At Grace Certified Accountants, we guide our clients through the MTD process to keep everything stress-free and compliant. If you’re unsure where to start or want help setting up, get in touch — we’re here to support you every step of the way.
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– Dora Ngoma, Grace Certified Accountants