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Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) – What You Need to Know

MTD ITSA - What you need to know

Making Tax Digital for Income Tax Self Assessment (MTD for ITSA)

From April 2026, the way millions of self-employed individuals and landlords report their income to HMRC is changing. If you earn income through self-employment or property, it's time to prepare for Making Tax Digital for Income Tax Self Assessment (MTD for ITSA).

At SCCS Accountants, we're here to help you navigate these changes smoothly and make sure you're fully compliant and stress-free when the new rules kick in.

What is MTD for ITSA?

MTD for ITSA is part of HMRC’s wider Making Tax Digital initiative to digitise the UK tax system. It aims to make tax administration more efficient, more accurate, and easier for taxpayers to get right.

Under the new rules, if you're self-employed or receive rental income, and your total business/property income is over £50,000 per year, you will need to keep digital records and submit income updates to HMRC quarterly, using MTD-compatible software.

The scheme will expand to those earning over £30,000 from April 2027.

Key Changes You Need to Know

 

  • Quarterly Submissions
    Instead of one annual Self Assessment return, you’ll need to submit updates every 3 months – that’s four submissions per year, plus a final end-of-year declaration.

 

  • Digital Record Keeping
    You'll be required to keep your income and expense records in a digital format, using software that is compatible with HMRC’s systems.

 

  • No More Paper Records
    Paper-based record keeping will no longer meet HMRC requirements once MTD applies to you.

 

  • Separate Income Streams
    If you have both self-employment and property income, they’ll each need to be reported separately under MTD.

Who Does It Affect?

You’ll be affected if:

  • You’re self-employed, and/or

  • You earn income from UK property

  • And your combined income from these sources exceeds £50,000 starting April 2026 (or £30,000 from April 2027)

Partnerships and Limited Companies are not yet included in MTD for ITSA but are expected to be in future phases.

How Can SCCS Accountants Help?

Getting ahead of the curve is key. At SCCS Accountants, we provide:

  • MTD-compliant software solutions (we can recommend and help set them up)

  • Training and support to help you manage your digital records

  • Ongoing quarterly submissions to HMRC on your behalf

  • Tailored advice on allowable expenses, tax planning, and making the most of your income

Whether you’re a sole trader, landlord, or both, we’ll make sure the transition to MTD is as smooth as possible.

When Should You Start Preparing?

Now. Even though the start date is April 2026, getting familiar with the software, understanding the process, and adjusting your bookkeeping habits will save you time and stress in the long run.

We recommend starting to use MTD-compliant software at least 12 months in advance, so you’re fully comfortable before the changes become mandatory.

Let’s Get You Ready

At SCCS Accountants, we believe tax compliance shouldn't be a burden. With the right tools and expert guidance, MTD for ITSA can actually help you stay more organised, save time, and understand your finances better.

Need help getting started?
Contact us today for a free consultation and let’s future-proof your accounting.

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