Making Tax Digital- Are You Ready?

17/09/2025

After years of pushbacks it finally seems Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) is upon us and from April 2026 those sole traders and landlords with an income of over £50,000 annually will become subject to the new regime. So what does it entail?

There are two main changes that those subject to MTD for ITSA will notice, firstly they are now required to send quarterly updates to HMRC. This is a stark contrast to the previous self-assessment system which required only one submission to HMRC a year under normal circumstances with five now being required going forward. Contrary to rumours circulating round however this quarterly submissions are not required to be as detailed as the annual self-assessment.

The second major change is businesses are now required to keep digital records of their receipts and expenses. This change will require business owners to do some planning before MTD for ITSA starts in April as switching over to digital accounting software if not currently in use is not something that can be done overnight and ideally the new system of using accounting software will already be in routine use by the business for the April rollout.

In preparing this article every effort has been made to ensure the content is up to date and accurate, however it is no substitute for professional advice. You should not make any decisions based solely on the information presented in this article.