From April 2026, the government begins rolling out Making Tax Digital for Income Tax Self Assessment (MTD for ITSA), marking one of the biggest shifts in UK tax reporting for decades. For many sole traders and landlords, the idea of moving from a once-a-year tax return to ongoing digital submissions can feel intimidating — especially if you’ve been managing your books with spreadsheets or paper records.
But the transition doesn’t need to be overwhelming. With the right support, MTD can actually make your financial record-keeping clearer, more accurate and easier to manage year-round.
Who needs to move to MTD?
MTD for ITSA is being introduced in two phases:
From April 2026
Anyone with self-employed income or property income over £50,000 must keep digital records and send quarterly updates to HMRC.
From April 2027
Those earning between £30,000 and £50,000 will follow the same rules.
MTD does not currently apply to partnerships, limited companies, or individuals under the income thresholds, although further phases are expected in the future.
What does MTD actually involve?
Once MTD applies to you, you’ll need to:
Keep digital records
Your income and expenses must be recorded through compatible software instead of paper or basic spreadsheets.
Send quarterly updates
Every three months, your figures are submitted to HMRC to give them a clear, in-year picture of your tax position.
Submit an annual final declaration
This replaces the traditional Self Assessment tax return and confirms your total earnings for the year.
Use HMRC-recognised software
This ensures all your submissions meet the new rules and stay compliant.
Why the change?
The aim is to reduce errors, improve accuracy, and give taxpayers more transparency over their financial position across the year. For businesses and landlords who embrace the change early, MTD often leads to smoother cash-flow planning, fewer surprises at year-end and better control over tax bills.
Feeling uneasy about the switch?
You’re not alone. Many people feel daunted by the thought of choosing software, migrating their records and dealing with new digital reporting rules. That’s exactly where Mayday can help.
We set everything up for you, move your records across, teach you how to use the system confidently, and handle the digital submissions so you stay compliant without the stress.
Let Mayday make MTD painless
The new rules are coming, but they don’t need to disrupt your business or add unnecessary worry. With guided support and the right tools in place, the transition can be smooth, simple and fully under control.
If you want clarity, confidence and a stress-free path into Making Tax Digital, talk to Mayday Accountants today. We’ll take care of the details, keep you compliant and make the whole process painless.