MAking Tax Digital

Making Tax Digital

If you’re self-employed or a landlord, you may have heard about Making Tax Digital for Income Tax Self-Assessment (MTD ITSA) — but what does it actually mean for you?

In short, MTD is the government’s plan to digitise tax reporting. That means no more once-a-year tax returns and no more paper records. Instead, you’ll need to keep digital records and send updates to HMRC throughout every quarter and the end of year using MTD-compatible software.

Who Does MTD ITSA Apply to?

From April 2026, if your self-employed or earn income from property and your total earnings from these sources are more than £50,000 a year, you’ll be impacted by MTD first. That’s cumulative income, not separate. If you’re self-employed and earn £30,000 a year and then earn £20,000 a year on a property you rent out, MTD still applies. Eventually, it will be rolled out to even more taxpayers, so getting to grips with the basics now is a smart move.

When is it Happening, and Why?

The first rollout starts in April 2026 and will apply to any business or landlord earning over £50,000 first. It then goes to those with income over £30,000 in April 2027. The government has set out plans to introduce legislation to lower the qualifying income threshold from £20,000 from April 2028, so I’ll update this page as and when that happens.

The aim of the whole thing is to reduce errors and make tax reporting more accurate and efficient. But for many people, it means changing how they keep records and submit tax information.

What Will it Look Like in Practice?

Instead of filing one Self-Assessment tax return each year, you’ll need to:

Keep digital records of income and expenses
Submit quarterly updates to HMRC
Send an End of Period Statement (EOPS) and a Final Declaration after the tax year ends

What’s in the Guide?

To help business owners really get to grips with MTD and what the future looks like when it’s in place, I’ve put together a comprehensive, easy-to-follow guide. Inside, you’ll find:

Exactly how MTD works
What records you need to keep
What happens if you file late or miss a deadline
Simple checklists to help you get ready
Guidance at a glance for quick reference
Recommended software tools and tips to stay compliant

Ready to Get Ahead of the Changes?

Don’t leave it to the last minute. Understanding MTD ITSA now means fewer surprises later — and more time to prepare your business properly.

Grab my full MTD ITSA guide today — and take control of your tax with confidence. Whether you’re just getting started or want to double-check your setup, this guide gives you all the ins and outs in one place.

P.S. Don’t forget that by buying the guide, you’ll donate to CARMA and their amazing work.

Buy the guide now