Important Update
HMRC is changing the way many self-employed people and landlords report their income tax. This is called Making Tax Digital for Income Tax (MTD for ITSA).
It means that instead of doing just one tax return a year, you’ll need to keep digital records and send updates to HMRC every 3 months, plus a final return.
But don’t worry — we’re here to help you through it.
Who will it affect?
It depends on how much you earn from self-employment and property income combined (before expenses).
| Your total income from self-employment & property | When you’ll move to MTD |
| Over £50,000 per year | From April 2026 |
| Over £30,000 per year | From April 2027 |
| Under £30,000 per year | Not yet decided |
For example:
– If you run your own business earning £35,000 and also rent out a flat earning £20,000, your total is £55,000. You’ll start in April 2026.
– If your total is £32,000, you’ll start in April 2027.
What will change?
- You’ll need to keep digital records (using software like QuickBooks, Xero etc).
• You’ll send quarterly updates (every 3 months) to HMRC showing your income & expenses.
• At the end of the year, you’ll send a final declaration instead of the old Self Assessment return.
How we can help
We’ll guide you through all of this, including:
• Choosing the right software
• Helping keep your records up-to-date
• Handling your quarterly and yearly submissions
So you can keep running your business with less stress!
If you want us to check when MTD will apply to you, or what you need to do to get ready, just get in touch. We’re always happy to help.