From April 2026, HMRC’s Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) becomes mandatory for many self-employed individuals and landlords across the UK. This marks a major shift in how tax records are kept and submitted—and it’s essential to be prepared.
👥 Who Will Be Affected?
- Sole traders and landlords with a total income over £50,000 per year.
- This includes income from self-employment, property, or a combination of both.
By April 2027, the threshold will drop to £30,000—so even if you’re not affected yet, it’s wise to get ready early.
✅ What You Need to Do to Be Compliant
To meet your legal obligations under MTD, you must:
- Keep digital records of income and expenses.
- Submit quarterly updates to HMRC using approved software.
- Complete an End of Period Statement (EOPS) and Final Declaration annually.
🛠️ Software & Technology to Help
You’ll need MTD-compatible software to manage your records and submissions. Popular options include:
- Xero, QuickBooks, and FreeAgent for user-friendly cloud accounting.
- HMRC-recognised bridging tools if you prefer to keep spreadsheets.
- Bank feeds and receipt capture apps to automate data entry and reduce errors.
🤝 Let J&MH Financial Services Handle It for You
At J&MH Financial Services Ltd we take the stress out of compliance. Whether you need help choosing the right software, setting up digital records, or managing quarterly submissions, our expert team is here to support you every step of the way. Book your FREE accountancy healthcheck here!
Stay focused on your business—we’ll handle the numbers.