The UK tax system is changing, and if you are a sole trader or landlord, it is essential to stay ahead of what is coming. HMRC is rolling out Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA), a new way to report your income and expenses. Here is everything you need to know.
🔍 What Is Making Tax Digital for Income Tax?
Making Tax Digital (MTD) is HMRC’s initiative to make tax reporting more efficient, accurate, and accessible by requiring businesses and individuals to keep digital records and submit tax information electronically.
From 6 April 2026, if you have gross income over £50,000 from self-employment and /or property, you will need to follow the new digital process. This means:
- Using compatible software to maintain records
- Sending quarterly updates to HMRC
- Filing an end-of-period statement and final declaration
The annual Self Assessment tax return, as we know it, will no longer apply to you once MTD kicks in.
✅ Why is this Important?
HMRC’s goal is to make the tax system easier, faster, and more accurate. For taxpayers, it means:
- Fewer errors and better compliance
- Real-time visibility of your tax position
- Improved financial planning with quarterly updates
- Less last-minute stress in January
However, if you are not prepared, this change could catch you off guard. Early preparation means peace of mind.
⏰When does it Start?
The mandatory start date is 6 April 2026 for individuals with income over £50,000. Those earning between £30,000 and £50,000 will be rquired to join MTD from April 2027.
But there is a way to get ready sooner…
🧪 Why join the Testing Phase Now?
HMRC is currently inviting agents and eligible clients to volunteer for early testing of the new system. by signing up now, you will benefit from:
- Exclusive access to HMRC’s dedicated customer support team
- The chance to familiarise yourself with the software
- Time to adjust your internel processes
- Confidence in supporting your tax affairs well before the deadline
🧾What do you need to Join?
To sign up for the testing phase, you will need:
- Software that works with Making Tax Digital for Income Tax
- An agent service account (or your accountant’s help)
- Details of your income sources
- Your permission to be enrolled in the pilot scheme
📩How we can Help?
At The Peek Partnership Limited, we are helping clients prepare early for Making Tax Digital. Whether you are a landlord, a sole trader, or both – we can:
- Advise on the right software
- Manage your MTD setup
- Support your ongoing digital tax submissions
👉Get Ready Now
Do not wait until 2026 to start thinking about MTD. The earlier you prepare, the smoother the transition will be.
📞Contact us today to find out if you are eligible for early sign-up and let us make tax simpler, together.
