Making Tax Digital for Income Tax Self Assessment: Are You Ready?

The way self-employed individuals and landlords report their income to HMRC is changing. The Making Tax Digital (MTD) for Income Tax Self Assessment (ITSA) initiative will require affected taxpayers to keep digital records and submit tax information quarterly instead of annually.

From April 2026, self-employed individuals and landlords with an income over £50,000 will need to comply, and by April 2027, the threshold will drop to £30,000. While the goal is to make tax reporting more efficient and reduce errors, for many, this will be a big change—one that requires careful preparation.

If you're self-employed or a landlord, you might be wondering:

❓ What does this mean for me?

❓ What software do I need to use?

❓ How will quarterly submissions affect my workload?

❓ What happens if I make a mistake or miss a deadline?

These are important questions, and if you don’t have the right support, MTD could become a source of stress rather than an opportunity to simplify your tax process. That’s where we come in.What is Making Tax Digital for ITSA?

Currently, self-employed individuals and landlords file their tax returns once a year, reporting all income and expenses in a single submission. Under MTD for ITSA, this will change significantly. Instead of one annual return, you will need to:

• Keep digital records of your income and expenses.

• Submit tax updates every three months using HMRC-approved software.

• Provide an End-of-Period Statement (EOPS) at the end of the tax year to finalise your tax position.

This means you will need reliable bookkeeping software and a structured approach to managing your finances throughout the year.

Who Needs to Comply with MTD for ITSA?

✔ From April 2026: Self-employed individuals and landlords with an annual income above £50,000.✔ From April 2027: Self-employed individuals and landlords earning between £30,000 and £50,000 will also need to comply.

If your income is below £30,000, you won’t need to follow MTD rules yet, but the government may extend the scheme further in the future.

Why You Need to Prepare Now

If you wait until the last minute, you could face unnecessary stress, missed deadlines, and potential penalties. MTD for ITSA isn’t just about submitting tax returns differently—it requires a whole new approach to managing your finances.

Many self-employed individuals and landlords don’t currently use digital bookkeeping software. If you’re still relying on spreadsheets or paper records, now is the time to start making the transition.

Challenges You Might Face Without the Right Support

🚨 Finding the Right Software – Not all accounting software is MTD-compatible. Choosing the wrong one could cost you time and money.

🚨 Keeping Up with Quarterly Deadlines – If you struggle to stay on top of admin now, MTD will require even more organisation.

🚨 Ensuring Accurate Records – Mistakes in your digital records could lead to tax miscalculations and penalties from HMRC.

🚨 Dealing with Compliance Issues – MTD requires a specific process for record-keeping and reporting. If you don’t follow it correctly, you could face fines.

You don’t have to figure this out alone. That’s where we come in.

How Salter Accounting Services Can Help

As a small accounting business, we provide a personal and tailored approach to help you navigate MTD for ITSA smoothly. We understand that tax changes can be daunting, especially when you're running your own business or managing rental properties.

Here’s How We Can Make MTD Easy for You

✅ Helping You Choose the Right Software – We’ll guide you in selecting MTD-compatible bookkeeping software that suits your needs and budget.

✅ Setting Up Your Digital Records – If you’re not used to digital bookkeeping, we can help you organise your accounts and ensure your records meet HMRC’s requirements.

✅ Managing Your Quarterly Submissions – Instead of worrying about four deadlines per year, let us take care of your tax updates and keep everything accurate and on time.

✅ Finalising Your End-of-Year Submission – We’ll make sure your End-of-Period Statement (EOPS) is correct, so you don’t overpay tax or risk compliance issues.

✅ Keeping You Updated on Tax Changes – Tax laws constantly evolve, and we stay on top of the latest HMRC requirements so you don’t have to.

Why MTD Could Be a Good Thing for Your Business

While MTD for ITSA introduces new requirements, it also brings opportunities:

✔ Better Financial Control – Regular reporting gives you a clearer picture of your tax position, helping you budget and avoid unexpected tax bills.

✔ Reduced Errors – Digital records are more accurate, reducing the risk of mistakes that could lead to penalties.

✔ Less End-of-Year Stress – Instead of scrambling to complete your tax return once a year, your finances will already be up to date.

✔ Future-Proofing Your Business – The UK tax system is moving towards full digitisation. Preparing now means you’re ahead of the curve.

Get Ready for MTD Now – We’re Here to Help

MTD for ITSA is coming, and if you’re self-employed or a landlord earning over £30,000, you will need to comply. But you don’t have to figure it out alone.

At Salter Accounting Services, we make tax compliance simple and stress-free, so you can focus on what you do best—running your business.

✅ Get set up with the right software✅ Keep accurate digital records✅ Meet every HMRC deadline with confidence✅ Avoid penalties and stay compliant

Don't wait until the last minute! Preparing early will save you time, money, and stress. Let’s make MTD work for you—contact us today and get started.