From April 2026, the UK government will begin rolling out Making Tax Digital for Income Tax Self Assessment (MTD for ITSA)—a major transformation in how sole traders and landlords report their income to HMRC. Designed to reduce errors and streamline tax management, MTD for ITSA will require individuals with qualifying income over £50,000 to maintain digital records and submit quarterly updates using compatible software.

This checklist will guide you through the essentials to ensure a smooth transition into the digital tax era.

– Are you a sole trader or landlord with annual gross income over £50,000?
→ You’ll need to comply with MTD ITSA from April 2026.
– If your income is over £30,000, you’ll be required to join from April 2027.

– Choose software that is HMRC approved for MTD ITSA.
– Ensure it can:
• Record income and expenses digitally.
• Submit quarterly updates to HMRC.
• Generate end-of-period statements and final declarations.

– Start keeping digital records of all business income and expenses.

– Avoid spreadsheets unless they’re linked to bridging software.

– You might also want to think about opening a business bank account if you don’t have one.

– Sign up via your Government Gateway account.
– You’ll need:
• Your UTR (Unique Taxpayer Reference)
• National Insurance number
• Business or property details

You’ll need to submit updates to HMRC every 3 months.

– Set reminders for:

• 6 April to 5 July – due by 7 August
• 6 July to 5 October – due by 7 November
• 6 October to 5 January – due by 7 February
• 6 January to 5 April – due by 7 May

– After the tax year ends, submit:
• End of Period Statement (EOPS)
• Final Declaration (replaces the Self Assessment tax return)

At MSG Accountancy we can help you filing with your quarterly submissions on your behalf using the right software, ensuring you are compliant with HMRC regulations without stress.