If you’re self-employed or running a side hustle, you might have heard the words Making Tax Digital for Income Tax Self Assessment (MTDITSA) floating around. Sounds complicated, right? But don’t worry—it’s not as scary as it sounds. In fact, with the right support, it could actually make your life easier.

Let’s break it down: what it is, when it’s happening, and why getting ahead of the game is a smart move.

What is Making Tax Digital for Income Tax (MTDITSA)?

Simply put, Making Tax Digital (MTD) is the government’s plan to move tax reporting online. This means no more last-minute tax returns and no more scrambling to find receipts stuffed in drawers! Instead, you’ll use HMRC-approved software to keep digital records and submit updates throughout the year.

The aim? To make tax reporting more efficient, accurate, and hopefully less stressful, especially as you’re probably already using some of this software already!

Who Needs to Be Ready by 6 April 2026?

From 6 April 2026, you will need to use Making Tax Digital for Income Tax if you:

• Are registered for Self Assessment as an individual
• Earn income from self-employment or property (or both)
• Have a qualifying income over £50,000 in the 2024-2025 tax year

If you meet these criteria, HMRC will review your 2024-2025 tax return (due by 31 January 2026) and let you know if you need to comply. If you do, you’ll receive a confirmation letter before the 6 April 2026 deadline.

Not quite at £50,000? You might still need to comply later. From April 2027, the threshold drops to £30,000, meaning more self-employed individuals and landlords will need to switch to MTD.

What Do You Need to Do?

If you’re one of the individuals required to switch to MTD for Income Tax, here’s what you’ll need to do before 6 April 2026:

• Find compatible software – You (or your accountant) must use HMRC-recognised software that works with MTD. Spreadsheets alone won’t cut it!
• Sign up for MTD for Income Tax – You’ll need to register for MTD once HMRC confirms you meet the criteria.
• Keep digital records – Every transaction related to your business or property income must be recorded digitally in real time (no more shoe boxes of receipts!).
• Submit quarterly updates – Instead of one big tax return, you’ll submit income and expenses updates every three months via your software.
• End-of-year finalisation – At the end of the tax year, you’ll submit a final declaration (like your current Self Assessment but digitally).

How This Will Affect You

For those who already use bookkeeping software, this may not feel like a huge change. But if you’re still relying on spreadsheets, paper records, or the “deal with it in January” approach, you’ll need to get comfortable with a new system sooner rather than later.

And while this might feel like an extra burden, the upside is: your bookkeeping will be more organised, and tax surprises will be a thing of the past!

Why Getting Professional Support is a Smart Move

While you can handle this yourself, working with an accountant or bookkeeping expert will make the transition much smoother. Here’s why:

• They can help you choose the right software – Not all MTD-compatible software is created equal. An expert will help you pick one that suits your needs.
• They’ll keep you compliant – Making errors could lead to fines, so professional guidance ensures you stay on the right side of HMRC.
• They save you time (and stress!) – Rather than spending hours figuring it all out, let someone else handle the tricky bits.

If you already have an accountant, they can manage this transition for you. If you don’t, now is a great time to consider professional support to make sure you’re ready well before the deadline.

What Should You Do Now?

Even though the deadline feels far away, it pays to prepare early. Here’s what you can do today:

• Check if you’ll be affected – Review your income for the 2024-2025 tax year to see if you’ll hit the £50,000 threshold.
• Start exploring software options – Don’t leave it until the last minute—begin looking at MTD-compatible software now.
• Get support – Whether it’s joining an accounting membership for guidance or working with a professional, getting help early will save you hassle later.
• Stay informed – HMRC’s official guidance is updated regularly. You can check the latest details here: gov.uk

Final Thoughts

Making Tax Digital for Income Tax isn’t something to fear, but it does require some preparation. By getting ahead now, you’ll avoid last-minute panic and make sure your finances are in order well before the 6 April 2026 deadline.

If you want to stay on top of these changes and get expert support, my Building Accounts-Ability membership is designed to help. Join today and ensure you’re ready for MTD without the stress!