Making Tax Digital for Income Tax Self Assessment (MTD ITSA) stops being a “future problem” very soon. From 6 April 2026, many sole traders and landlords will need to keep digital records and send updates to HMRC using compatible software.
If you’re self-employed or you earn money from property, the best move is to get organised now — not in March 2026 when you’re already busy.
What’s changing from April 2026 (in plain English)
MTD ITSA is a new way of reporting your self-employment and property income to HMRC. Instead of doing everything once a year through Self Assessment, you’ll be expected to:
- keep digital records of income and expenses
- send quarterly updates during the tax year
- submit end-of-year information through your software (your “finalisation”/declaration)
HMRC is rolling it out in phases, starting 6 April 2026 if your qualifying income is above £50,000.
Who needs to follow MTD ITSA from 6 April 2026?
You’ll need to use MTD ITSA from 6 April 2026 if your qualifying income is over £50,000 (based on the relevant tax year HMRC uses for the check). “Qualifying income” is broadly your gross income from self-employment and property.
And it doesn’t stop there:
- Over £30,000 → expected to join from 6 April 2027
- Over £20,000 → planned for later phases (currently shown as 6 April 2028 in HMRC’s public campaign guidance)
So even if you’re not in the first wave, it’s still worth setting up properly now.
Step 1: Work out if you’re in scope (and don’t guess)
Your first action is simple: check your figures and don’t rely on “it feels like I’m under”.
HMRC’s guidance explains the thresholds and when you’ll need to start, based on qualifying income.
If you’re not confident in your numbers, this is exactly where a tidy bookkeeping setup helps. Start with proper Book Keeping so you’re not trying to reverse-engineer your income from bank statements.
Step 2: Get your records digital (without overcomplicating it)
Under MTD ITSA, you’ll need to create and store digital records of your self-employment and/or property income and expenses — including the amount, date, and category.
That doesn’t mean you need a complicated system. You just need consistency:
- keep your sales/income up to date
- record expenses properly (with a note of what they are)
- save receipts/invoices in a way you can retrieve later
- separate business and personal spending where you can
If you’re a sole trader, the fastest route is getting the basics right through Sole Trader Accounting and building from there.
Step 3: Choose MTD-compatible software early
You (or your accountant) will need software that works with MTD ITSA. HMRC maintains a list of compatible options, and it was updated as recently as 29 January 2026, so it’s worth using the official source rather than guessing.
If you want a quick starting point, Asmat’s Useful Links & Forms page highlights common platforms and resources that SMEs, freelancers, and landlords tend to use.
And if you want help setting up properly (so your categories and reports actually make sense), this is where Quickbooks Accountants can save you a lot of time.
Step 4: Understand the new reporting rhythm (quarterly updates)
Quarterly updates are exactly what they sound like: every 3 months, you send HMRC a summary of income and expenses for each self-employment and property income source (your software will guide you).
To make this real, the ICAEW notes that for the first quarter of the first mandated year (6 April to 5 July 2026), the update would be due 7 August 2026 (an example of how the deadlines land).
The practical point: if your bookkeeping is months behind, quarterly reporting becomes stressful. If it’s updated weekly or monthly, it becomes routine.
Step 5: Plan your landlord records properly (it’s not just “rent in, bills out”)
If you’re a landlord, MTD ITSA is basically a push to do what you should be doing anyway: keep clean, trackable records of rental income and allowable expenses.
If you need a simple refresher on what to track, this guide is a good starting point: Guide to Rental Income and Expense.
And if you’re operating (or considering) a company structure for property, make sure you understand the difference in reporting and tax treatment: How To Set Up a Buy-To-Let Company.
Step 6: Don’t forget you still have Self Assessment obligations
MTD ITSA doesn’t magically wipe out your existing responsibilities overnight. HMRC’s sign-up guidance explains that you still need to submit a Self Assessment tax return for the tax year before you start using MTD ITSA.
So you should keep your current compliance in shape while you prepare for the new process. If you want support with your current filings, start here: Tax Return.
Step 7: Use management reports to stay ahead of tax (and cashflow)
One of the biggest wins of going digital is visibility. When your books are up to date and your software is configured properly, you can see your numbers clearly — and make better decisions throughout the year.
This matters because tax bills don’t feel big when they’re spread across 12 months. They feel big when they land as a surprise.
That’s why ongoing reporting like Financial Reports can be genuinely useful alongside MTD: it helps you forecast what you might owe and set money aside in a sensible way.
Step 8: If you’re VAT registered too, align the systems
MTD ITSA is about Income Tax. But if you’re VAT registered, you already live in a world of digital records and regular submissions.
It’s worth making sure your process is joined up, so you’re not running separate systems (or duplicating work). If VAT applies to you, keep it tidy with VAT Returns.
What you should do this month (a simple checklist)
If you want a straightforward “do this now” plan:
- Check whether you’re likely over £50,000 qualifying income for the relevant year HMRC uses.
- Move to a clean digital record-keeping routine (weekly is ideal).
- Pick compatible software using HMRC’s list.
- Set categories up properly from day 1.
- Decide whether you want to manage submissions yourself or have your accountant handle them.
If you want a broader view of what support fits your situation (sole trader, landlord, small business), start here: Who We Help and Services.
Next steps
If you want to get ready for MTD ITSA without the stress — and set up a system that keeps your numbers clear, your records tidy, and your deadlines under control — speak to Asmat & Co. Whether you need help with software, bookkeeping, quarterly updates, or your wider tax planning, you can get started via Contact Us and we’ll help you put a practical plan in place before April 2026.
