Making Tax Digital for Income Tax: the April 2026 deadline
Making Tax Digital for Income Tax Self Assessment — MTD ITSA — came into force in April 2026 for many self-employed people and landlords. If you’re affected, the change is significant. This is a plain-language summary of what’s going on and what to do about it. It’s not personal tax advice; if your situation is complex, talk to a qualified accountant.
Who is affected
From 6 April 2026, MTD ITSA applies to sole traders and landlords with annual qualifying income above £50,000. That income threshold drops to £30,000 from April 2027. There is a planned extension to those earning over £20,000 from April 2028. The thresholds are based on combined self-employment and property income, not on profit.
If you’re below the threshold, you can choose to comply voluntarily, but you’re not required to.
What’s actually required
Three things, broadly. First, you need to keep digital records of your income and expenses — paper ledgers and shoeboxes of receipts no longer cut it. Second, you need to submit quarterly updates to HMRC summarising income and expenditure. Third, you submit a final declaration at the end of the tax year confirming your total figures and any adjustments.
The annual Self Assessment return, in its current form, is being replaced by this combination of quarterly updates and final declaration for those in scope.
What you need to actually do
Practically, three steps. First, choose an MTD-compatible software product — HMRC publishes a list of approved providers. Major options include FreeAgent, QuickBooks, Xero, and Sage, plus a number of smaller specialist tools for landlords. Second, start keeping records digitally now, even if you’re not yet required to submit quarterly. Getting into the habit before the deadline is much easier than learning it under time pressure. Third, decide whether you’ll handle the submissions yourself or whether you want an accountant to do it for you. Most people in the first year benefit from professional support.
What this means for businesses we work with
For most CM Beyer clients — limited companies — MTD ITSA doesn’t directly apply. You’re already subject to different filing rules. However, if you’re a sole director taking income from property or other self-employment alongside your company, you may be in scope. It’s worth checking.
For founders trading as sole traders before incorporating, MTD ITSA may apply to your pre-incorporation income. Again, worth checking with your accountant.
What we’re doing internally
As a limited company, CM Beyer Limited isn’t directly within scope of MTD ITSA. But our broader compliance work — VAT under Making Tax Digital for VAT, Corporation Tax filings, payroll, and so on — already runs through MTD-compatible software, and we’ve been operating on that basis since incorporation. We took the view that anything we’d have to migrate to later should be set up correctly on day one.
Frequently Asked Questions
Where can I find the HMRC list of approved software?
HMRC publishes the list on gov.uk under “Find software that works with Making Tax Digital for Income Tax Self Assessment”. It’s updated regularly.
What happens if I miss a quarterly deadline?
HMRC operates a points-based late submission penalty system. Penalties only kick in once you’ve accumulated enough points; one missed deadline isn’t catastrophic but consistent lateness will be.
Do I need an accountant?
Not legally, but most people benefit from one — particularly in the first year. The cost of getting things wrong typically outweighs the cost of professional help.
Where can I find more authoritative information?
Start with gov.uk’s MTD ITSA pages, then speak to a qualified accountant about your specific situation.
