You may have heard the phrase Making Tax Digital (MTD) more and more in business circles lately, and while it’s not new to the world of VAT, there’s a big change on the horizon for self-employed individuals and landlords.
From April 2026, MTD for Income Tax Self Assessment (MTD for ITSA) will begin to roll out — and if you’re a sole trader or property owner earning over £50,000 a year, this will directly affect how you report your income to HMRC.
As always, Coplow Business Support is here to keep things simple, clear, and stress-free. Here’s everything you need to know.
What Is MTD for Income Tax Self Assessment?
MTD for ITSA is part of HMRC’s wider Making Tax Digital strategy, which is aimed at modernising the UK tax system. While MTD for VAT has been in place since 2019, this next phase focuses specifically on self-employed individuals and landlords.
From April 2026, if you fall into this category and earn over £50,000, you’ll be required to:
- Keep digital records of income and expenses
- Send quarterly updates to HMRC using MTD-compatible software
- Submit a final annual declaration (replacing the traditional self-assessment tax return)
By April 2027, those earning over £30,000 will also be included.
Who Does This Affect?
This change is particularly relevant if you:
- Are a sole trader or freelancer
- Own a rental property that generates income
- File a Self Assessment tax return each year
“If your total self-employment and/or property income is above £50,000, MTD for ITSA will apply to you from April 2026.”
Now is the time to check how you’re currently tracking your income and expenses. If you’re still relying on spreadsheets, paper, or a shoebox of receipts (no judgment!), it’s time to start thinking digital.
How to Prepare for MTD for Personal Tax
At Coplow Business Support, we recommend taking a few proactive steps:
- Start using MTD-compatible software – We can help you choose the best fit for your business.
- Get into a routine with your records – Regular updates will soon be the norm.
- Speak to your bookkeeper – (That’s us! ) We’ll walk you through what needs to change and help you make a smooth transition.
Why It Matters to Businesses in Clitheroe and the Ribble Valley
If you’re based in Clitheroe, Ribble Valley, or anywhere across Lancashire, you might already be feeling the pressure of keeping on top of your finances. These changes aim to make tax simpler in the long run, but in the short term, they can feel overwhelming.
That’s where we come in. Coplow supports businesses across the region with clear, proactive bookkeeping that keeps you compliant and confident. We’re already helping clients prepare for MTD for personal tax now — well ahead of the 2026 deadline.
Final Thoughts
MTD for Income Tax Self Assessment is a big shift, but with the right support, it doesn’t have to be a stressful one.
We’re here to answer your questions, get your systems up to speed, and ensure you’re ahead of the curve – not playing catch up.
Want help getting ready for MTD? Drop us a message today and let’s chat.
Coplow Business Support Ltd – Your friendly bookkeeping experts in Clitheroe, Ribble Valley, and across Lancashire.
