On 6 April 2026, Making Tax Digital for Income Tax (MTD for ITSA) officially begins.

That’s 31 days from today.

If you’re self-employed and your gross business income exceeds £50,000, this change will affect you from the start of the 2026/27 tax year.

For many, this is the biggest shift in personal tax reporting in over 25 years.

Making Tax Digital for Income Tax Self Assessment (MTD ITSA) replaces the single annual tax return with:

• 📊 Digital record keeping

• 📤 Quarterly submissions to HMRC

• 🧾 An End of Period Statement

• 🧮 A final declaration replacing the current Self Assessment return

From April 2026, the system becomes mandatory for qualifying individuals.

From 6 April 2026, MTD applies to:

• Sole traders

• Self-employed individuals

• Landlords

With gross income over £50,000 from those sources.

From April 2027, it will extend to those earning over £30,000.

This is based on gross income, not profit.

Currently:

• Keep records (often spreadsheets)

• Submit one Self Assessment per year

Under MTD:

• Keep digital records using compatible software

• Submit updates to HMRC every quarter

• Finalise your position after year end

The annual tax bill still exists, but reporting becomes more regular.

This is not just “more admin”.

It means:

• Paper records won’t be sufficient

• Spreadsheets alone may not qualify

• Software will be mandatory

• Reporting deadlines increase significantly

If you’re unprepared, you risk:

• Penalties

• Incorrect submissions

• Increased stress throughout the year

With 31 days remaining, you should:

✅ Confirm whether your income exceeds £50,000
✅ Ensure you are using MTD-compatible software
✅ Move to digital bookkeeping (if you haven’t already)
✅ Review how your bookkeeping is currently structured
✅ Speak to your accountant about readiness

Waiting until April is too late.

MTD changes behaviour.

Quarterly reporting means:

• Greater visibility of tax liabilities

• Fewer surprises in January

• Stronger financial discipline

• Real-time awareness of profit

Handled properly, it can actually improve decision making.

Handled poorly, it creates chaos.

At Llewellyns, we’ve been preparing clients for MTD throughout 2025 to ensure a smooth transition.

If you’re unsure whether you’re ready, now is the time to check.

31 days sounds like plenty. It isn’t.

If you’d like clarity on your position before 6 April, get in touch.