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Making Tax Digital for Income Tax Self Assessment – What It Means & How to Prepare

Realizarea impozitului digital pentru impozitul pe venit (MTD pentru ITSA): Ce înseamnă și cum vă putem ajuta să vă conformați

Making Tax Digital (MTD)

 

Guvernul Regatului Unit Making Tax Digital for Income Tax Self Assessment initiative is set to reshape how individuals and businesses report income to HMRC. While MTD for VAT is already in place, the next major change is Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) — starting from April 2026.

 

In this post, we’ll walk you through:

 

  • What changes are coming with MTD for Income Tax,
  • Who will be affected and how, and
  • How Taxes4u can support you every step of the way.

What Changes Are Coming with Making Tax Digital for Income Tax Self Assessment?

 

From April 2026, MTD for Income Tax will become mandatory for many self-employed individuals and landlords. Under this new system, the way you report your income to HMRC will significantly change.

 

Here’s what’s new:

 

  • Quarterly digital updates: Instead of one annual Self Assessment tax return, you’ll need to submit updates to HMRC every three months.
  • Digital record keeping: You’ll be required to keep all records digitally using MTD-compliant software.
  • End of Period Statement (EOPS): After the end of the tax year, you’ll need to submit a final statement reconciling your income and claiming any reliefs or adjustments.
  • Final Declaration: A final annual declaration will confirm all income details before your final tax liability is calculated.

 

AspectCurrent Process (Self Assessment)MTD for Income Tax (From April 2026)
Record KeepingPaper records or spreadsheetsDigital records via MTD-compatible software
Submission FrequencyOne annual returnQuarterly submissions + EOPS + Final Declaration
Software RequirementNot requiredMandatory digital software
Submission MethodHMRC Self Assessment portalSubmission through MTD-compliant software
Financial VisibilityLimitedReal-time tracking of income and tax position
Deadline PressureHigh around 31 JanDeadlines spread throughout the year
Automation & InsightsManual processesAutomated, efficient, and insight-driven reporting

Who Will Be Impacted by Making Tax Digital for Income Tax Self Assessment?

 

  • From April 2026, Making Tax Digital for Income Tax Self Assessment will apply to self-employed individuals and landlords with annual income over £50,000.
  • From April 2027, it will extend to those earning over £30,000 per year. 

 

If you currently rely on spreadsheets or manual records, now is the time to transition to digital bookkeeping to stay compliant with MTD for Income Tax Self Assessment requirements.

How Taxes4u Can Help with Making Tax Digital for Income Tax Self Assessment

 

As experienced digital bookkeepers, we provide full support to help you prepare and adapt to MTD for Self Assessment with ease.

 

Here’s how we can help:

 

  • MTD-Compliant Software Setup
    We help you choose and set up the right digital bookkeeping software to meet HMRC’s MTD requirements.

 

  • Ongoing Digital Bookkeeping
    We maintain your records digitally, ensuring accuracy, compliance, and peace of mind.

 

  • Quarterly HMRC Submissions
    We handle all your quarterly income tax updates and ensure nothing is missed.

 

  • End of Year Statements & Tax Planning
    We take care of your End of Period Statement and Final Declaration, and help optimise your tax position.

 

  • Training & Support
    We offer expert guidance and software training if you want to manage your digital records yourself.

Why Prepare for MTD Early?

 

Making Tax Digital is more than a compliance obligation — it’s an opportunity to streamline your finances, reduce errors, and plan better. By getting ready now, you’ll avoid last-minute stress and stay ahead of HMRC’s deadlines.

Ready for Making Tax Digital? Let’s Get Started.

 

Don’t wait until the last minute to prepare for HMRC’s digital income tax reporting changes. Whether you’re self-employed, a landlord, or a small business owner, our digital bookkeeping team is here to help you stay fully compliant and stress-free with your MTD obligations.

Making Tax Digital concept with digital tax charts, HMRC documents, and a laptop in a finance-themed background
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