If you’re a self-employed individual or landlord in the UK, big changes are coming to the way you keep tax records and submit returns. The ﹙MTD for Income Tax Self Assessment﹚ regime is being phased in by HM Revenue & Customs (HMRC) and will require many to move away from annual paper filings and adopt digital record-keeping and quarterly updates. At H. Financial Solutions Ltd we’ve broken down everything you need to know — so you can prepare today, not panic tomorrow.
What is MTD for ITSA?
Making Tax Digital for Income Tax (MTD ITSA) extends the digital-record-keeping and reporting regime that HMRC already uses for VAT into income tax for self employment and property income. The aim: more accurate data, fewer errors, and faster processing. (GOV.UK)
Who is in scope — and when?
- From 6 April 2026 – If your gross income from self-employment and/or UK property in the 2024/25 tax year is £50,000 or more, you must:
- keep digital records
- use approved software
- submit quarterly updates to HMRC under MTD ITSA. (GOV.UK)
- From 6 April 2027 – If your income in the 2025/26 tax year is £30,000 or more, you will also be mandated. (GOV.UK)
- From April 2028+ – The government has indicated a threshold of £20,000 may be introduced for later phases. (ICAEW)
What you’ll need to do
- Switch to MTD-compatible software now (e.g., Xero, QuickBooks) to record income and expenses digitally.
- Ensure your bookkeeping systems are up to date — for the 2024/25 and 2025/26 years.
- Prepare for quarterly updates, not just an annual self–assessment. For example, the first quarter under the new regime will cover 6 Apr–5 Jul 2026 for those joining April 2026. (ICAEW)
- Speak to an advisor about how this change affects you: threshold, income sources, software choice, and exemptions.
Why actuating now matters
Waiting until the deadline increases risk: missing software compatibility, incomplete records, or uncertainty around your income level. Early preparation means you’ll avoid compliance headaches, reduce errors, and stay one step ahead.
How we help at H. Financial Solutions Ltd
We support clients in all aspects of MTD ITSA compliance:
- Diagnosing whether you’ll be in scope
- Setting up digital bookkeeping systems and software
- Preparing for quarterly submissions and final declarations
- Helping landlords and self-employed stay compliant and stress-free
Conclusion
MTD for ITSA is a watershed change — it’s not simply a new tax form, but a transformation of how tax data is recorded and submitted. If your income is around the thresholds, or you’ll soon be in scope, now is the time to act. Get in touch to start your preparation today.