• Making Tax Digital for Income Tax (MTD ITSA) starts in April 2026

• It affects sole traders and landlords earning over £50,000 (before expenses)

• From April 2027, it drops to £30,000, meaning more people will be affected

• You’ll need to keep digital records and send quarterly updates via software.

• Already using Xero or QuickBooks? You’re ahead 👍🏻

• Still using spreadsheets or paper? We’ll help you move to cloud tools without stress

• We guide clients early, so you’re not caught off guard later

• Bookkeepers: we can work with you! You handle the bookkeeping, we handle compliance and Self Assessment 🙌🏻

• We’re now onboarding clients for 24/25 Self Assessments

💻 What Is Making Tax Digital for Income Tax and Who Needs It?

Making Tax Digital for Income Tax is HMRC’s next big digital shift, and it’s going to affect millions of small business owners and landlords in the UK.

Whether you’ve been trading for years or just figuring things out, it’s essential to understand what’s changing and how to prepare.

At BarrettStacey Accounting, we’re already supporting clients through this shift…calmly, clearly, and proactively.

🧾 What is Making Tax Digital for Income Tax?

It’s the next phase of HMRC’s Making Tax Digital (MTD) programme. If you’re affected, it means:

• You’ll need to keep digital records of your income and expenses

• You must use MTD-compatible software (like QuickBooks or Xero)

• You’ll submit quarterly updates to HMRC through that software

• At the end of the tax year, you’ll send a final end-of-year summary

This change is called:

• MTD for Income Tax

• MTD for ITSA (Income Tax Self Assessment)

• Or sometimes even just “MTD for IT” 🤯

They all mean the same thing, and they all start from April 2026.

👀 Who does it affect?

In Phase 1, starting April 2026, MTD for Income Tax will apply to you if:

• You’re self-employed or a landlord

• And your total income from those sources is over £50,000

From April 2027, that threshold drops to £30,000.

So even if you’re not affected right away, it’s worth preparing now.

💡 Our clients don’t need to guess when we file their 2024–25 Self Assessments; we automatically check if MTD will apply and plan accordingly. If this sounds like something you’d like, be quick, book a call, because the clock is ticking and our November call slots are filling up fast. 

☁️ What if I already use accounting software?

Great news! If you’re already using Xero, QuickBooks, or FreeAgent, you’re in a strong position.

We’ll make sure:

• Your setup is MTD-compliant

• Your records are accurate and structured properly

• You’re submitting updates correctly

• You know what’s expected each quarter

Want to do the MTD updates yourself? No problem.
Want us to handle it all for you? Also, no problem 😊

📉 What if I use spreadsheets or paper?

If you’re still using spreadsheets (or the classic receipts-in-a-shoe-box method 😅), now’s the time to consider upgrading.

Under MTD, you can’t submit paper returns or manually typed figures. It all has to be digital and sent via compliant software.

We’ll help you:

• Pick the right accounting software (based on your needs and budget)

• Set it up correctly

• Show you how to use it or do the bookkeeping for you

🤝 Bookkeepers,  we’re here to partner with you

If you’re a bookkeeper who handles the day-to-day finances, but you don’t offer Self Assessments (or don’t want to deal with MTD compliance)… we’d love to collaborate.

Here’s how it works:

• You stay in control of your client’s bookkeeping

• We step in just for the Self Assessment and/or MTD submission

• We respect your client relationship 💛

• No poaching, no awkward boundaries

Together, we make sure clients are fully supported from daily records to final returns 🙌🏻

👋 We’re onboarding clients for 24/25 now

Whether you’re a business owner needing support or a bookkeeper looking for a reliable compliance partner, now’s the time to act.

⏳ We usually close the doors to new Self Assessment clients in early December

📆 Getting onboarded now means:

• No January panic

• A personalised plan for MTD

• Calm, clear guidance from a friendly team

Book a callback on a day and time that suits you. We can discover how we can help you, and if we feel that we are the right fit for each other, we will send you a quote.

🤔 FAQs 

What is Making Tax Digital for Income Tax?
MTD for Income Tax is a new requirement from HMRC that means sole traders and landlords earning over £50,000 will need to submit digital records and quarterly updates from April 2026.

Who does MTD apply to?
In Phase 1, it applies to UK sole traders and landlords earning over £50,000 from self-employment or property. In Phase 2 (from April 2027), it applies to those earning over £30,000.

Can I use spreadsheets for MTD?
Not on their own. You’ll either need bridging software or MTD-compliant cloud software like Xero or QuickBooks. We can help you choose and set this up.

Can I do the quarterly updates myself?Yes, if you’re confident using accounting software, you can. We support clients whether they want to DIY or hand it all over.

I’m a bookkeeper. Can I outsource my clients’ Self Assessments to you?
Absolutely. We partner with bookkeepers across the UK to handle Self Assessments and MTD compliance, while they continue the bookkeeping. We work with you, not against you. Click this link to find out more about our Bookkeepers Partnership.

✨ Ready to get ahead of the change?

MTD for Income Tax is coming. But you don’t need to panic.

We’re here to:

• Submit your Self Assessment 24/25 ✅

• Create your MTD game plan ✅

• Set up your software (or work with your bookkeeper) ✅

• Keep you calm, compliant, and confident all year round 😊

📞 Book a free call
📩 Or email: ask@barrettstacey.co.uk
📦 Check out our Self Assessment service

We’ve got you.

Authored by Hayleigh Barrett. Director.

As founder of BarrettStacey Accounting, she leads a friendly, female-led team that focuses on clarity, communication and care, not just compliance.