MTD for ITSA 2026: What UK Sole Traders & Landlords Need to Know

If you’re self‑employed or a landlord, MTD for ITSA 2026 is probably something you’ve heard about, and then quietly pushed to the back of your mind.

This blog is your January to April 2026 refresher, not full of jargon, not designed to scare you, but written to help you understand what’s coming, who it affects, and what you should realistically be doing now.

Because like it or not, MTD for ITSA 2026 is happening, and April isn’t far away.

Making Tax Digital for Income Tax (MTD for ITSA) is HMRC’s new system for reporting income tax.

Under MTD for ITSA 2026, sole traders and landlords will move away from once‑a‑year reporting and instead:

• Keep digital records of income and expenses
• Send quarterly updates to HMRC
• Submit their final tax return digitally using approved software

The goal is to improve accuracy and give you more visibility over your tax position during the year, rather than surprises in January.

6^th April 2026

This date is now fixed. MTD for ITSA is no longer a proposal, pilot, or future plan, it officially starts from April 2026 for the first group of taxpayers.

You will need to follow MTD for ITSA 2026 rules if all of the following apply:

• You are an individual registered for Self Assessment
• You receive income from self‑employment, property, or both
• Your qualifying income is over £50,000 per year

What counts as qualifying income?

Qualifying income includes:

• Turnover from self‑employment (before expenses)
• Gross rental income from UK property (before expenses)

If your income is below £50,000, you won’t be required to join in April 2026, but future phases are expected, so understanding the system now is still valuable.

This is where most people start to worry, but broken down properly, it’s manageable.

You must keep digital records of your income and expenses.

This usually means:

• Using accounting software that is MTD‑compatible
• Recording transactions regularly rather than all at once

Spreadsheets alone will not be enough unless they are linked to compliant software.

We’ve done a full blog on “What Actually Counts as a Digital Record for MTD” here…

Instead of one annual submission, you’ll send four quarterly updates each tax year.

These updates:

• Summarise your income and expenses
• Are not final tax calculations
• Help HMRC build a clearer picture throughout the year

At the end of the tax year:

• Adjustments are made
• Reliefs and allowances are applied
• A final declaration is submitted

Your tax payment deadline remains 31st January following the tax year, just like now.

From what we see in practice, MTD becomes stressful when people:

• Only speak to their accountant once a year
• Rely on manual or last‑minute bookkeeping
• Haven’t chosen software in advance
• Assume HMRC will delay things again

MTD itself isn’t the problem, leaving preparation too late is.

Yes… You (or your accountant) must use software that works with MTD for ITSA to:

• Create, store and correct digital records
• Send quarterly updates
• Submit your final tax return

The good news is you don’t need to work this out on your own, and the right setup can actually save time.

Absolutely.

You can work with an accountant (us) to manage MTD for ITSA 2026 on your behalf, including:

• Signing you up correctly
• Setting up suitable software
• Handling quarterly submissions
• Preparing and submitting your final return

This is where choosing a proactive accountant makes a real difference! (Future Cloud Accounting👋)

Our approach to MTD for ITSA 2026 is simple, make it feel organised, calm and under control.

When you work with us, we:

• Confirm whether and when MTD applies to you
• Set you up with MTD‑compatible software that fits your business
• Help keep records up to date throughout the year
• Manage deadlines and quarterly submissions
• Explain everything clearly and simply, not HMRC jargon

Starting now means:

• No last‑minute rush before April
• Time to choose the right systems
• Fewer mistakes and less stress later

The businesses who prepare early rarely panic. Those who leave it late usually wish they hadn’t.

Our clients don’t come to us to learn tax rules, they come to us so they don’t have to worry about them.

If you’re unsure whether:

• You meet the £50,000 threshold
• Your income counts as qualifying income
• Your current setup is MTD‑ready

That’s exactly what we help with.

Get in touch here with us for a clear, no‑pressure conversation about MTD for ITSA 2026 and what it means for you.

Sometimes a short conversation now can save months of stress later.

Email us on info@future-cloud.co.uk

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