Do the new HMRC rules apply to you? Making Tax Digital for Income tax may apply if you are self-employed, a sole trader or a landlord. But what does it all mean?

Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) is transforming the way income tax is reported. From April 2026, self-employed individuals, sole traders, and landlords earning over £50,000 will be required to switch to digital tax filing. At Francis & Co, we’re here to guide you through the change. Here’s what you need to know:

What Is MTD for Income Tax?

MTD for ITSA requires taxpayers to keep digital records and submit quarterly updates of their income and expenses using HMRC-approved software. It replaces the annual January submission and makes tax reporting easier and more accurate. Whilst submissions are quarterly, payment of income tax will still be in January and July.

Who’s affected?

MTD for ITSA will be introduced in two main phases.

If you are self-employed, a sole trader, or a landlord earning over £50,000 gross per year, the new rules apply from April 2026.

If your gross income is above £30,000, you will be brought into the system from April 2027. Lower income thresholds are expected to follow from April 2028.

What you need to do

1. Use MTD-Approved Software to keep digital records of income and expenses.
2. Submit Quarterly updates (for quarters ending 30 June, 30 September, 31 December and 31 March are due by 7 August, 7 November, 7 February and 7 May respectively).
3. Complete a final year-end declaration to confirm your tax position.

How we can help

• Digital Set-Up: We’ll get you set up with MTD-compatible software.
• Quarterly Submissions: We’ll handle your quarterly submissions, accurately and on time.
• Expert Support: We’ll provide ongoing support to ensure you stay compliant and stress-free.

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Key dates:

• April 2026: Applies to those with gross income over £50,000.
• April 2027: Applies to those with gross income over £30,000.

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Get ready for Making Tax Digital with Francis & Co – your partner in seamless tax compliance. Call us today to get started!

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