From 6 April 2026, Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) officially begins its phased rollout. This marks a significant shift in how self-employed individuals and landlords report income to HMRC.
👥 Who's Affected in 2026?
Starting in April 2026, self-employed people and landlords with a combined gross income of over £50,000 from self-employment and property income will be required to comply with MTD rules.
This includes individuals earning over £50,000 in total from self-employment, UK property, or overseas property.
If your income is under £50,000, you’re not affected until April 2027 (threshold drops to £30,000), and those earning under £30,000 will be brought in later (currently planned for April 2028).
🧾 What You'll Need to Do
If you’re affected, from April 2026 you must:
Maintain digital records using MTD-compatible software.
Send quarterly updates to HMRC summarizing your business/property income and expenses.
Submit a final end-of-year declaration, replacing the traditional Self Assessment return.
Example: Instead of one Self Assessment tax return in January 2027 for the 2025/26 tax year, you’ll start submitting four quarterly updates for the 2026/27 tax year beginning April 2026.
🛠️ What's Simplified?
HMRC has made some changes to streamline MTD:
No separate End of Period Statement (EOPS) – everything is combined into the final declaration.
Quarterly updates are cumulative, meaning errors can be corrected in later submissions.
You can continue to use cash basis accounting (which will be the default for many businesses under MTD).
🔍 Key Dates for 2026 Date
Requirement - 6 April 2026 - MTD begins for £50k+ earners
Early August 2026 - First quarterly update due (covering Apr–Jun)
✅ How to Prepare Now
Review your total income: Are you above £50k? If so, MTD applies to you from April 2026.
Choose compatible accounting software: Popular options include Xero
Talk to your accountant - we will be contacting our affected clients to advise them in due course.