With just a year to go until Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) becomes mandatory, HMRC is urging sole traders and landlords to get ready for the upcoming changes. From 6 April 2026, self-employed individuals and landlords with business or property income over £50,000 will need to comply with new digital record-keeping and reporting requirements.

At Smith Allen Chartered Accountants, we’re here to help you understand what this means—and ensure you’re ready well in advance.

What Is MTD for ITSA?

Making Tax Digital (MTD) is HMRC’s initiative to modernise the UK tax system. Under MTD for ITSA:

You’ll need to keep digital records of all income and expenses.

Instead of one annual tax return, you’ll submit quarterly updates to HMRC via approved software.

A final declaration will replace the traditional self-assessment return.

The aim is to improve accuracy, reduce errors, and streamline tax reporting—but for many, it will be a significant change.

Who Is Affected?

From April 2026, self-employed individuals and landlords earning over £50,000 will fall within the scope of MTD for ITSA. A year later, from April 2027, those with income over £30,000 will also be included.

If you fall into these categories, now is the time to act.

How Smith Allen Chartered Accountants Can Help

At Smith Allen, we work closely with sole traders and landlords to simplify their tax affairs and prepare them for digital transformation.

We offer:

✅ Advice and guidance on your MTD obligations

✅ Help choosing and setting up compliant digital accounting software

✅ Ongoing bookkeeping and support to keep you on track

✅ Preparation and submission of quarterly updates and final declarations

✅ Peace of mind that you’re meeting all HMRC requirements

With our help, you can avoid last-minute stress, ensure compliance, and even use the opportunity to gain better insights into your business finances.

Don’t Wait Until the Deadline

April 2026 may seem a long way off—but making the move to digital record-keeping takes time. Early adopters often benefit from improved financial clarity and fewer surprises at tax time.

Contact Smith Allen Chartered Accountants today to find out how we can support you through the transition to Making Tax Digital. Whether you’re already using digital tools or still working with paper records, we’ll help you get prepared—efficiently and stress-free.

📧 info@SmithAllen.uk

📞 07491 770155