Making Tax Digital for Income Tax Self-Assessment: Preparing for April 2026

From April 2026, HMRC will begin the phased rollout of Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA). This change will initially affect individuals with gross self-employment or property income exceeding £50,000, with the threshold lowering to £30,000 in April 2027. It is essential for affected business owners and landlords to understand the new requirements and begin preparations now.  

Who is affected by Making Tax Digital (MTD) obligations? 

From April 2026, MTD for ITSA will apply to individuals who: 

• Have gross self-employment or property income over £50,000 per year, and 
• Are required to file a Self-Assessment tax return. 

In April 2027, the threshold drops to £30,000, bringing many more sole traders and landlords into the picture. 

What are the new requirements and what does this mean? 

Those within scope will need to: 

• Maintain digital records of income and expenses 
• Submit quarterly updates to HMRC 
• Provide an End of Period Statement (EOPS) 
• Finalise figures with a year-end declaration 

Think of it as swapping a once-a-year tax return for regular updates throughout the year. 

Who’s is currently excluded? 

The following groups are currently excluded from MTD for ITSA: 

• Partnerships 
• Limited companies 
• Individuals with income below £30,000 
• Trusts and estates 

Why start preparing now? 

Transitioning to compliant digital software, helping clients understand the new requirements and updating bookkeeping processes ahead of the deadline will ensure a smooth changeover and ongoing compliance. Early preparation will help mitigate the risk of missed deadlines and potential penalties. 

How Equiom can help 

Equiom’s experienced accounting and tax teams can support you in understanding the new requirements, selecting appropriate digital solutions, and ensuring your processes are fully compliant ahead of the April 2026 deadline.

Contact us to discuss how we can help you prepare for Making Tax Digital for Income Tax Self-Assessment. 

This article has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. This article cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained within this article without obtaining specific professional advice. Please contact Equiom Group to discuss these matters in the context of your particular circumstance. Equiom Group, its partners, employees, and agents do not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this article or for any decision based on it.