Self-employed individuals and landlords have a few more years to prepare for Making Tax Digital (MTD) for Income Tax Self Assessment (ITSA). But it's not too early to start planning for the transition now.
The thought of going digital can be daunting when you've been doing your accounts with paper records and spreadsheets for years. But many software products have built-in additional help to guide you and there is always your advisor on hand to assist you.
The timeline for MTD ITSA is:
6 April 2026 if you have an annual business and/or property income of more than £50,000
April 2027 if you have an annual business and/or property income of more than £30,000
Some businesses and agents are already keeping digital records and providing updates to HMRC as part of a live pilot to test and develop the Making Tax Digital for Income Tax. If you are a self-employed business or landlord, check if you can voluntarily sign up now through your software provider.