Making Tax Digital (MTD) for Income Tax Self Assessment (ITSA) represents a monumental shift in how UK sole traders and property landlords submit taxes. Starting in April 2026, individuals with qualifying business and rental income over £50,000 will be required to keep digital records and send quarterly updates of their income and expenses to HMRC using compatible software. In April 2027, this threshold lowers to £30,000.

What does this mean for you?

Instead of submitting a single annual Self-Assessment tax return at the end of the year, you will need to:

  1. Keep digital records of all transactions.
  2. Submit four quarterly updates to HMRC (due 7 August, 7 November, 7 February and 7 May).
  3. Submit a year-end Final Declaration by 31 January, which replaces the old Self-Assessment return. (The separate End of Period Statement was removed — its role is now absorbed into the Final Declaration.)

How QA FinTax can help

At QA, we are pre-registering clients for Making Tax Digital pilot testing and implementing MTD-ready Xero and QuickBooks ecosystems. We ensure your invoices, expenses, and banking reconciliations flow automatically to prevent compliance disruption and secure your reporting compliance well ahead of deadlines.