Making Tax Digital for Income Tax April 2026: Landlords & Sole Traders

Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) is set to transform the way self-employed individuals and landlords report their income and expenses. From 6 April 2026, many taxpayers will need to comply with new digital record-keeping and reporting requirements.

From April 2026, self-employed individuals and landlords with gross qualifying income exceeding £50,000 must comply with MTD for ITSA. By April 2027, this threshold will extend to those with income over £30,000.

• Those without a National Insurance number on 31 January prior to the tax year.
• Individuals who are digitally excluded (application process for exemption yet to be confirmed).
• Sole traders and landlords earning £30,000 or less remain under Self-Assessment for now. However, those earning between £20,000 and £30,000 are expected to transition before the end of the current Parliament.

Who is not affected?

Partnerships including LLPs and companies are not affected as there is no confirmed date for MTD extension to Corporation Tax.

Digital Record-Keeping: Maintain digital records of income and expenses using compatible software or spreadsheets.

Quarterly updates

• Submit income and expense summaries to HMRC every quarter.
• Separate reports required for each trade or property business.
• Deadlines: 7th of the month following the quarter-end (e.g., first update due by 7 August).
• Option to align reporting with calendar quarters (April-June, July-September, etc.).

Year-end final declaration

• After the fourth quarterly update, submit a final ‘digital tax return’.
• Adjustments for accounting and tax purposes are made at this stage.
• Other income sources (e.g. PAYE, bank interest) must be reported.
• The deadline remains 31 January following the tax year-end.

HMRC will not automatically register taxpayers. Those meeting the income threshold must sign up, similar to the current Self-Assessment process. Eastfield Accountants can assist with registration, but bulk sign-ups are not available.

Transitioning to MTD for ITSA can be complex, but Eastfield Accountants is here to guide you. We can:

• Assess whether you need to comply with MTD for ITSA.
• Recommend and implement MTD-compatible software.
• Assist with income tax self assessment, quarterly submissions and year-end reporting.
• Handle registration and compliance requirements.

Get in touch with Eastfield Accountants today to ensure you are prepared for the changes ahead.