Making Tax Digital for Income Tax (MTD ITSA)

What’s changing in April 2026 — and how to prepare calmly

Making Tax Digital for Income Tax Self Assessment (MTD ITSA) is a change to how some sole traders and landlords keep records and report income to HMRC.

From April 2026, if you’re a sole trader or landlord with business or property income over £50,000, you’ll need to follow the new MTD ITSA rules.

For many business owners, this feels like a big shift — but it doesn’t need to be stressful. With the right setup and steady support, it becomes a manageable routine.

Book your free 15-minute discovery call

Who will be affected?

MTD ITSA will apply to:

  • From April 2026: sole traders and landlords with income over £50,000
  • From April 2027: those with income between £30,000 and £50,000

If you’re under these thresholds, you don’t need to take action yet — but it can still be useful to understand what’s coming.


What changes under MTD ITSA?

Currently, many people submit one Self Assessment return each year. Under MTD ITSA you’ll need to:

  • keep records digitally using HMRC-compatible software
  • submit quarterly updates during the year
  • submit a final year-end submission

In simple terms: it becomes a more regular reporting cycle, supported by software rather than manual paperwork.


What about spreadsheets?

If you currently use spreadsheets, you may still be able to keep working in a way that feels familiar — but submissions will need to be made through software that can connect to HMRC.

We can guide you on the most practical approach for your business, including software options and simple ways to keep your records organised.


How Books & Business can help

We support business owners who want structure, clarity, and compliance handled in a steady organised way..

Depending on your needs, we can help by:

  • setting you up on HMRC-compatible software (for example QuickBooks or Xero)
  • keeping your bookkeeping organised throughout the year
  • preparing and submitting quarterly updates and the year-end submission
  • providing plain-English guidance so you understand what’s happening
  • offering check-ins and reminders so nothing is left to the last minute

This can be done as part of ongoing bookkeeping support, or as a focused MTD ITSA preparation and setup.


Why it's worth preparing ahead of time

Preparing early means:

  • you avoid a last-minute rush
  • you have time to settle into a simple routine
  • your bookkeeping processes can be improved gradually, without pressure

The goal is not “more admin” — it’s a calmer, more structured way of keeping on top of records.


Let’s talk it through

If you’re unsure whether MTD ITSA will affect you, or you’d like a clear plan for getting ready, we can talk it through.


Book your free 15-minute discovery call
No pressure. No jargon. Just a clear conversation.


Note on deadlines:   To meet submission deadlines, we rely on clients providing information in good time. We’ll send reminders and chase paperwork where needed, but late delivery of records may affect timelines.