MTD for ITSA, self-employed tax 2026, MTD compatible software, HMRC updates.
Making Tax Digital (MTD) for Income Tax Self Assessment (ITSA) is the most significant change to the UK tax system in decades. Starting in April 2026, it transforms how self-employed individuals and landlords report income to HMRC, moving away from a single annual return to a digital, real-time approach.
As a certified partner with Xero, QuickBooks, and FreeAgent, My Tax Advisors And Accountants Ltd led by Dr. Mehmood Jamshed is ready to help you navigate this transition smoothly.
Who is affected and when?
The rollout is based on your “qualifying income”—your total gross income from self-employment and property before any expenses.
- From 6 April 2026: Mandatory for those with qualifying income over £50,000.
- From 6 April 2027: Mandatory for those with qualifying income over £30,000.
- From 6 April 2028: Planned extension for those with qualifying income over £20,000.
Those earning below £20,000 are currently exempt and will continue using the traditional Self Assessment system.
Your New Reporting Obligations
Under MTD for ITSA, you must fulfill three core requirements using HMRC-compatible software:
- Digital Record Keeping: You must maintain digital records of every business transaction (income and expenses).
- Quarterly Updates: Instead of one annual deadline, you will send a summary of your income and expenses to HMRC every three months.
- Final Declaration: By 31 January following the tax year, you must submit a final declaration to confirm your total tax liability, including other income sources like dividends or savings.
Important Deadlines for 2026/27
| Reporting Period | Submission Deadline |
|---|---|
| 6 April – 5 July | 7 August |
| 6 July – 5 October | 7 November |
| 6 October – 5 January | 7 February |
| 6 January – 5 April | 7 May |
| Final Declaration & Payment | 31 January |
How My Tax Advisors Can Help
Transitioning to digital reporting doesn’t have to be stressful. Our team provides:
- Software Setup & Training: We help you choose and implement the best Cloud Accounting solution for your business.
- Compliance Management: We ensure your quarterly updates are accurate and submitted on time to avoid new penalty points.
- Strategic Tax Planning: Get real-time visibility into your tax bill so there are no surprises in January.