MTD Coming in 2026

Get Ready for 2026: Making Tax Digital for Self Assessment is Coming

Big changes are on the horizon for landlords and the self-employed. From April 2026, the government’s Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) rules will come into effect, changing the way millions of people report their income to HMRC.

If you're a landlord or self-employed and your annual income exceeds £50,000, this affects you. And if your income is over £30,000, you’ll be joining the scheme from April 2027.

So, what’s changing—and how can you get ahead? Let’s break it down.

What is MTD for ITSA?

Making Tax Digital (MTD) is part of HMRC’s plan to modernise the UK tax system. It replaces traditional annual tax returns with quarterly digital updates and an end-of-year statement. Under MTD for ITSA, you’ll need to:

• Keep digital records of your income and expenses.

• Use compatible accounting software to submit updates to HMRC.

• Send quarterly summaries of business income and expenses.

• Submit a final declaration at the end of the year.

Who Will Be Affected?

From April 2026:

• Self-employed individuals and landlords with a total annual income over £50,000 must comply.

From April 2027:

• The threshold lowers to those with annual income over £30,000.

If your income is below £30,000, you’re not in scope (for now), but voluntary sign-up is encouraged.

What You Need to Do

Preparation is key. Here’s how to get ready:

1. Review your income – Check if your total self-employment and/or property income exceeds the thresholds.

2. Go digital – Start using MTD-compatible software. Many options are available, from simple apps to full accounting platforms.

3. Get support – Partnering with an accountant (like us!) ensures compliance and saves you time.

How We Can Help

At Clacton Bookkeeping & accounts, we’re already helping clients transition to MTD with:

• Software setup and training

• Bookkeeping support

• Quarterly submissions

• Full year-end tax services

We make MTD stress-free, so you can focus on running your business.

Don’t Wait Until 2026

Getting ahead now means no last-minute rush and no risk of non-compliance. Whether you’re tech-savvy or new to digital tools, we’re here to guide you through every step.

Questions about MTD? Get in touch today—we’re happy to help.