Making Tax Digital for Income Tax: What You Need to Know
Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) is a major change in the way sole traders and landlords report their income to HMRC. From April 2026, many taxpayers will be required to keep digital records and submit updates to HMRC quarterly instead of filing a single annual tax return.
At Whitefield Accountants Limited, we're here to help you understand what this means for you and how to get ready in good time.
Who Will Be Affected
From April 2026, MTD for Income Tax will apply to:
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Sole traders with annual business income over £50,000
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Landlords with annual property income over £50,000
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From April 2027, the threshold drops to £30,000.
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If your income is below these thresholds, you can continue using the current Self Assessment system for now - but digital changes are likely to follow in the future.
What Will Change Under MTD for ITSA
Under MTD, you'll be required to:
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Keep digital records using compatible software (spreadsheets are allowed if linked via bridging software)
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Send quarterly updates to HMRC summarising your income and expenses.
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Submit an end-of-period statement (EOPS) at the end of the year.
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File a final declaration (similar to the current tax return) to confirm your total income and tax liability.
What Stays the Same?
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Your tax payment deadlines (e.g. 31 January) remain unchanged.
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You'll still be able to claim allowable expenses and reliefs as before.
How Can We Help?
At Whitefield Accountants, we can:
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Set you up with MTD-compliant software tailored to your needs
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Help you maintain digital records efficiently
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Handle your quarterly updates, year-end statements, and financial declaration
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Offer ongoing advice and support to keep you compliant - and stress-free!
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