April 2026 marked one of the biggest changes to the UK tax system in a generation. Making Tax Digital for Income Tax Self-Assessment, known as MTD for ITSA, is now live and mandatory. If you’re self-employed or a landlord with income over £50,000, this affects you starting from the 2026/27 tax year.

This is not something you can ignore. HMRC is actively enforcing it.

What Is MTD for Income Tax?

MTD for ITSA replaces the old annual Self-Assessment return with a new quarterly digital reporting system. Instead of filing once a year, you must now:

• Submit a quarterly update to HMRC through MTD-compatible software (four times per year)
• Provide an end-of-period statement confirming your annual figures
• Submit a final declaration (replacing the old tax return) to confirm your total income and claim reliefs

All of this must be done through HMRC-approved software. Spreadsheets and paper records on their own are no longer acceptable for affected taxpayers.

Who Is Affected Right Now (May 2026)?

From April 2026 – mandatory now: Sole traders and landlords with combined qualifying income over £50,000 per year.

From April 2027 – coming soon: The threshold drops to £30,000, bringing in a much larger group of local business owners and landlords.

From April 2028: The threshold is expected to fall further to £20,000, which will capture a very significant proportion of self-employed people in the Harrow and Stanmore area.

What Does “Qualifying Income” Mean?

This is your gross self-employment turnover plus gross rental income`, not your profit. So if you’re a trader turning over £40,000 and also earning £15,000 rent from a buy-to-let, your qualifying income is £55,000 and you’re in scope now.

What Happens If You Don’t Comply?

HMRC’s new points-based penalty system applies to MTD failures. Each missed quarterly submission earns a penalty point. Accumulate enough points and a financial penalty of £200 is charged, with further penalties for continued non-compliance. Interest runs on late payments as usual.

What You Need to Do Right Now

1. Check whether you’re in scope: do your gross receipts from self-employment and/or property exceed £50,000 for 2025/26?
2. Choose MTD-compatible software: HMRC publishes an approved list; popular options include QuickBooks, Xero, FreeAgent, and Sage
3. Register for MTD with HMRC: this is a separate registration from Self-Assessment
4. Start keeping digital records from the beginning of your accounting period
5. Speak to an accountant: the transition is the most complex part, and getting it wrong from the start creates problems

How I Can Help

I’m helping local business owners across Harrow, Stanmore, Wembley, and Edgware transition to MTD-compliant accounting right now. I can advise on software selection, handle HMRC registration, and take over your quarterly submissions so you don’t have to think about it.

📧 info@yourtaxhelp.co.uk | 📞 07478 645331

Your Tax Help Accountants — Stanmore, London. HMRC Registered Agent.