 MTD ITSA, Making Tax Digital, HMRC, Landlords, Self Employed HMRC’s New MTD for Income Tax Starts in April 2026: What Landlords and the Self-Employed Need to Do Now
For many landlords and self-employed people, tax has always meant one main rush each year. That is changing. From 6 April 2026, HMRC’s new Making Tax Digital for Income Tax (MTD ITSA) rules begin for many sole traders and landlords. If you are affected, you will no longer be able to just leave everything until the end of the tax year. Instead, you will need to keep digital records and send quarterly updates to HMRC using compatible software. This is a major shift, and many people are still underestimating how much work, organisation and accuracy it will really require. That is exactly why now is the right time to get proper help. What Is HMRC’s New MTD for Income Tax From April 2026? From 6 April 2026, many landlords and self-employed people with qualifying income over £50,000 must keep digital records and send quarterly updates to HMRC using compatible software. HMRC’s test is based on your qualifying income, which means your gross income from self-employment and property before expenses, not your profit. If your combined qualifying income is above £50,000 for the 2024/25 tax year, you may need to join MTD for Income Tax from 6 April 2026. This is not just a software change. It is a new reporting habit, a new compliance system and, for many people, a new source of pressure unless it is set up properly from the beginning. Who Will Be Affected First? From 6 April 2026, MTD for Income Tax applies to sole traders and landlords whose total qualifying income from self-employment and property is over £50,000 based on the 2024/25 tax year. From 6 April 2027, the threshold drops to over £30,000 based on the 2025/26 tax year, and HMRC has also said that those with qualifying income over £20,000 will be brought in from 6 April 2028. This means:
One of the biggest misunderstandings is this: HMRC is looking at gross income, not profit. So if you earn £28,000 gross from self-employment and £24,000 gross from property, your combined qualifying income is £52,000, which means you are likely in scope from April 2026. What Will You Actually Have To Do? If you are caught by the new rules, you or your agent will need to use MTD-compatible software to:
The key dates HMRC has published for those joining from April 2026 include:
Importantly, the 2025/26 tax year is still filed in the usual Self Assessment way by 31 January 2027, because that tax year ends before MTD begins. And MTD ITSA does not record other types of income such as savings interest, dividends, CGT, overseas, wages etc. Why This Feels Much Bigger Than “Just Software” A lot of articles online make MTD sound like a basic software upgrade. It is not. For many landlords and self-employed people, this will mean changing from a once-a-year tax mindset to an every-quarter compliance routine. That means more deadlines, more record keeping, more chances to get behind, and more pressure if the books are not tidy from the start. HMRC’s guidance makes clear that you must use compatible software, keep digital records and submit quarterly updates before you can complete the end-of-year process. Why Cheap Software Alone Is Not the Answer HMRC does not provide its own MTD software for Income Tax. Instead, taxpayers must choose from compatible third-party software. HMRC says there are free and paid options, but software being “compatible” does not mean it will choose the right treatment for you, keep you fully organised, or make the best tax decisions on your behalf. This is where many people will get caught out. Software can help you enter figures. It does not replace judgement or tax knowledge and experience - which saves you tax. It does not tell you:
Cheap software may look attractive at the start, but if the bookkeeping is poor or the tax treatment is wrong, it can cost far more later in stress, overpaid tax, missed claims, corrections and HMRC problems. Why Using Tax Affinity Is the Smarter Option The best approach for most landlords and self-employed people is not to struggle through this alone and hope for the best. It is to get the system set up properly from the start. At Tax Affinity Accountants, we do not just tell clients to buy software and get on with it. We help make the whole process practical, compliant and manageable. That means we can help you:
For many people, that is the real value. Not “having software”. Having the right accountant behind the software. A Simple Step-by-Step Plan Step 1: Check if you are in scope Look at your 2024/25 gross income from self-employment and property. If the combined figure is over £50,000, you should be preparing now for April 2026. Step 2: Do not wait for panic season If you leave this until the last minute, you are far more likely to choose the wrong process, keep poor records and end up stressed by the first quarterly deadline. Step 3: Get your bookkeeping method sorted You need a clean digital method that works in real life, not just in theory. HMRC says you need compatible software, but choosing software is only one part of getting ready. Step 4: Let a specialist review your position This is especially important if you have:
Step 5: Let Tax Affinity handle it properly The safest route is to let an experienced accountant set the system up, review the records and manage the compliance process with you. What About Penalties? HMRC has announced an easement for those who are mandated into MTD from April 2026: it will not apply penalty points for late quarterly updates for the first 12 months. But that does not mean quarterly updates can be ignored. HMRC still requires them, and they must be submitted before the year-end process can be completed. Penalties can still apply for late tax returns and late payment. So the message is simple: Do not confuse “temporary softening of penalties” with “this is not important.” It is important. Very. Does This Apply To Limited Companies? No. HMRC’s current MTD for Income Tax rollout from April 2026 is for sole traders and landlords in scope, not limited companies. Partnerships are expected to be brought in later, but they are not part of the April 2026 start. Final Thought: This Is Not the Time to Wing It This change is coming. HMRC has confirmed that it is going ahead from 6 April 2026, and it has already said that hundreds of thousands of sole traders and landlords will be affected. For some people, MTD will be manageable. For others, it will become a cycle of missed deadlines, messy records and frustration. The difference will often come down to one decision: Do you try to patch it together yourself with cheap software, or do you get it set up and reviewed properly from the start? At Tax Affinity Accountants, we help landlords and self-employed clients make this transition in a way that is clear, controlled and tax-efficient. Speak to Tax Affinity Before April 2026 If you are a landlord or self-employed and think the new MTD rules may apply to you, now is the right time to act. We can help you:
Contact Tax Affinity Accountants today and let us help you get ready properly. About the Author Written by Anni Khan, Tax Affinity Accountants Reviewed by Andrew Khan, Principal Accountant, Tax & Forensic Accounting Specialist, Recognised tax agent authorised to act on clients’ behalf with HMRC. Tax Affinity Accountants are UK-based tax and accountancy specialists supporting individuals and SME businesses. With offices in Worcester Park, Kingston upon Thames, and Epsom & Ewell, they act for clients across the UK and internationally, providing compliant, HMRC-focused tax advice and support. For more information, visit www.taxaffinity.com or read more insights at www.taxaffinity.com/blog. Important Notice This article is for general information purposes only and does not constitute personalised tax advice. Tax treatment depends on individual circumstances. Professional advice should be sought before taking action. #MTD #ITSA, #MakingTaxDigital, #HMRC, #Landlords, #SelfEmployed, #SoleTraders, #IncomeTax, #QuarterlyUpdates, #April2026, #TaxAffinity, #PropertyTax, #SelfAssessment #accountant  🔔 Major MTD Changes Coming: Are You Ready for Digital Self-Assessment?
From April 2026, self-employed individuals and landlords earning over £50,000 will face a big shift in how they report their taxes. And just a year later, in April 2027, this will extend to those earning £30,000 or more. These new rules are part of HMRC’s Making Tax Digital (MTD) initiative — a digital-first transformation of the UK tax system. So, what does this mean for you — and why is it so important to act now? 📌 What is Making Tax Digital (MTD) for Income Tax? Making Tax Digital is HMRC’s ongoing initiative to modernise the UK tax system. Under this scheme, certain taxpayers will no longer be able to submit one annual Self Assessment return. Instead, they must: ✅ Keep digital records of all business and property income and expenses ✅ Use MTD-compatible software to submit updates every quarter ✅ File a final end-of-year declaration digitally The goal? More accurate, timely reporting — but also greater burden for those unprepared. 🧠 Who Is Affected?The upcoming changes apply to:
Still unsure if you fall into this category? - Call Tax Affinity for a free eligibility check. ⏰ Why You Should Act Now The transition to MTD won’t be a simple software upgrade. It requires a complete rethink of your record-keeping and ongoing reporting habits. Without expert support, you risk: ❌ Missed deadlines ❌ Incorrect submissions ❌ Hefty HMRC penalties Don’t let poor preparation cost you money — or your peace of mind. 💼 Why Choose Tax Affinity Accountants? At Tax Affinity, we’re not just accountants — we’re digital tax transformation specialists. As the MTD deadline approaches, we offer: 🛠️ Full MTD Setup & Software Integration 📚 Real-time bookkeeping solutions 📅 Quarterly updates submission on your behalf 🧾 Expert tax advice tailored to landlords and sole traders 📞 Unlimited support with a dedicated personal accountant With over 20 years' experience helping individuals and businesses stay compliant, we’re your trusted partner in the digital tax era. 💡 What Sets Us Apart?✔️ Transparent, fixed pricing ✔️ Tailored MTD packages — no “one size fits all” ✔️ Local, friendly, and jargon-free support ✔️ Recognised MTD-ready by HMRC ✔️ 5-star rated across Google, Trustpilot, and Facebook Thousands already trust us — it’s time you did too. 📣 Take the Next Step — Before It’s Too Late The longer you wait, the harder the transition becomes. But with Tax Affinity by your side, it’s easy, stress-free and fully HMRC-compliant. 👉 Book your free MTD readiness consultation today 📞 Call us or click here to fill our contact form on our website 🌐 Visit: www.taxaffinity.com 🛡️ The Bottom Line MTD is not just another box to tick. It’s a major change in how you manage your finances. The good news? You don’t have to face it alone. Tax Affinity Accountants are here to make it easy, affordable, and penalty-free. Don't settle for guesswork — partner with the experts. 👉 Switch to Tax Affinity today — before the rush hits. You'll be glad you did. By Anni Khan at Tax Affinity Accountants Tax Affinity Accountants are experts Business, Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for both individuals and small & medium sized businesses (SME's). Helping and supporting both individuals and limited company owners / self employed people throughout the UK and the world, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success. For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends. 🔍 Stay Ahead with These Key Hashtags: #MakingTaxDigital #MTDforIncomeTax #SelfAssessment2026 #SelfEmployedTax #LandlordTaxUK #HMRCMTD #DigitalTax #UKTaxChanges #MTDHelp #TaxAffinityAccountants #TaxComplianceUK #MTDExperts #MTDDeadline #MTD #TaxAffinity #contractoraccountant #contractors #consultant #contractor #consultants  Expert tax accountants & advisors for small & medium sized business & individuals On 6th March 2024 the UK Chancellor announced the Spring Budget for the UK. There were quite a few positive changes and the main points to help plan ahead are below:
Child Benefit Changes Starting April 2024, parents will receive Child Benefit as follows: £25.60 per week (£1,331 annually) for the eldest child and £16.95 per week (£881 annually) for additional children. Presently, if either parent's income exceeds £50,000, the High Income Child Benefit Charge (HICBC) takes effect, requiring repayment of Child Benefit once income surpasses £60,000. This necessitates completing a self-assessment tax return. As of April 6, 2024, the threshold rises to £60,000 with a gradual taper, fully recouping Child Benefit when income exceeds £80,000. By April 2026, the clawback assessment will shift to a "household income" basis, pending HMRC adjustments. The 2024 threshold increase will lower the combined tax rate (HICBC, income tax, and NIC) on incomes above £60,000, encouraging parents to earn more. Eventually, transitioning to a "household income" basis should create fairer outcomes for families, albeit HMRC implementation challenges may arise. Changing the Non-Domiciled (non-dom) status and tax treatment The government plans to end the current tax treatment for UK resident non-domiciled individuals (non-doms) starting April 6, 2025. This regime, in place for over 200 years, allowed UK residents with permanent homes abroad to avoid UK tax on foreign income and gains (FIG) unless brought into the UK. It also shielded non-UK assets from Inheritance Tax. As of April 6, 2025, the current remittance basis will be replaced by a new residence-based test lasting four years for those who have been non-UK residents for at least the prior ten tax years. During this period, newcomers won't pay tax on foreign income or trust distributions brought into the UK. However, they'll lose personal allowances and CGT exemptions. After four years, individuals will be taxed like other UK residents on worldwide income and gains. Transitional rules apply: non-doms moving from remittance to arising basis in 2025/26 will be taxed on 50% of foreign income; reduced rates for pre-6 April 2025 FIG remittances till 2027; and Capital Gains Tax rebasing for non-UK assets. Business Investment Relief continues. From April 6, 2025, settlor-interested trusts lose tax protection unless they qualify for the four-year FIG regime. Overseas workday relief remains for the first three years, depending on opting into the new regime. Inheritance Tax shifts from domicile to residence-based from April 6, 2025, with assets within ten years of UK residency potentially liable. UK sited assets remain subject to IHT. These changes simplify the non-dom tax system, but complexities persist. Transitional provisions offer time for adjustment. Current non-doms should consult their Tax Affinity adviser promptly as these are significant changes. National Insurance Class 1 Changes (Employed) Starting from an annual income of £12,570 up to £50,270, employees pay Class 1 National Insurance Contributions (NICs). The rate is currently 10% (down from 12% since January 6 this year). Above £50,270, the rate remains 2% for additional earnings. From April 6, 2024, the main rate will decrease by another 2% to 8%, potentially saving employees up to £63 monthly (£754 yearly). Employers' NICs, at 13.8% over the lower threshold, remain unchanged. This reduction benefits employees and may ease pressure on employers regarding wage hikes. Self-Employment Changes Self-employed individuals pay Class 4 NICs from £12,570 to £50,270 at 9% (dropping to 8% from April 6, 2024). Above this threshold, the rate stays at 2%. Starting April 6, 2024, the rate decreases by another 2% to 6%. This saves £30 for every £1,000 of profit, up to £1,131 annually for those paying at the main Class 4 NIC rate. Class 2 NICs were abolished from April 6, 2024, offering a positive financial change for the new tax year. Capital Gains Tax When you sell residential property and make a profit, you might owe Capital Gains Tax (CGT), except when it's your main home, which is CGT exempt. If the property wasn't always your main home, only part of the gain is taxable. Currently, residential property gains are taxed at 18% for basic rate band profits and 28% thereafter. Starting April 6, 2024, the higher rate reduces to 24% for property sales. Reporting the sale within 60 days from completion is crucial. Sales exchanged before April 6, 2024, may still be taxed at 28%. Landlords affected by the abolishment of Furnished Holiday Lets tax benefits from April 2025 will see changes. From April 6, 2025, furnished holiday lettings will be treated as property investment businesses, losing several tax benefits:
Investments The Budget introduced measures to encourage individual investing and foster a stronger savings culture. Here are the key points:
VAT threshold increased The government is raising the VAT registration threshold from £85,000 to £90,000 and the deregistration threshold from £83,000 to £88,000. These changes start on April 1, 2024. Over 28,000 businesses are expected to benefit by no longer needing to register for VAT in 2024-25. Conclusion Overall this is a much better budget than the previous autumn one presented in 2023. VAT announcement is decades overdue and the drop in NI thresholds don't make that much of a real world difference when price rise percentage is way higher then the percentage drop. And again the goverment did not address any of the large multinationals raking huge profits while small businesses and the public suffer. The sale of Natwest shares in a recession (that the government used tax payers money to bail out the bank recently) needs to be critically analysed more closely as to the effective timing of the sale and real time benefit for tax payers who directly paid for this out of their pockets. At times like these its even more important to have an experience and knowledgable tax accountant in your corner. By Anni Khan at Tax Affinity Accountants Tax Affinity Accountants are experts Business, Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for both individuals and small & medium sized businesses (SME's). Helping and supporting both individuals and limited company owners / self employed people throughout the UK and the world, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success. For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends. a Tax Accountants Experience and expertise is highly valued in tax planning and hmrc investigations5/22/2023
 Tax Affinity expert tax accountants for help with planning and investigations Tax Affinity Accountants are rated as experts in Tax and Accounting Industry and because of our experience and expertise with Tax we can help clients to both legally minimise their tax and make the best plans for the future. We never recommend breaking any rules but instead using our expertise know that there is more than enough scope with the framework to legally reduce taxes and still have the peace of mind. And because we stay abreast with the latest changes and developments we are are always at the forefront of advising clients when things change. And you know your in safe hand because Tax Affinity are experts in tax law with a good working relationship with HMRC. There to there to help and support clients if they are involved in a HMRC tax or VAT investigation or have a Worldwide Disclosure / Let Property Campaign letter etc to respond to. We are always able to successfully support and guide clients to the best possible outcome. Just ask one of our many happy clients who sing our praises. Below is a list of just some of the things we can help with. If what your looking for is not listed we most likely are still able to do it but just didnt want to make the list too long. Give us a call and have a chat with one of our tax experts or come into one of our high street branches - we will be happy to help. - Inheritance tax planning for landlords with estates between £1million - £250million - Capital gains tax planning - Transferring properties into a limited company - Incorporation - Offshore tax planning - HMRC Tax and VAT Investigations - Code of Practice 8 and 9 investigations - Alternate Dispute Resolution - Tax Tribunals - Forensic Accounting - Worldwide Disclosure Facility - Let Property Campaign - HMRC Check of Self Assessment / Tax - Contractual Disclosure Facility (CDF) - Code of Practice 8 / 9 / 11 / 14 - Section 144 Enquiry - Section 12A TMA 1970 Notice Investigations - Code of Practice 11 (Local Compliance Offices) - Code of Practice 14 Investigation (Company Tax Return Investigations) By Anni Khan at Tax Affinity Accountants Tax Affinity Accountants are experts Business, Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for both individuals and small & medium sized businesses (SME's). Helping and supporting both individuals and limited company owners / self employed people throughout the UK and the world, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success. For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends.  Only 20 working days left until HMRC self assessment deadline.
Did you know this year over 2700 people did their tax return on Christmas day this year according to HMRC. Those that did know that they have to get it done before the deadline of 31/01/2021 and that there is only 20 working days left (as of today 31/12/20). So if you have not had your 2019/20 (6.4.19 to 5.4.20) tax return completed then you urgently get in touch today as the number of working days are fast decreasing and before you know it the time will be gone and you may end up facing a fine by HMRC for missing the deadline. By Anni Khan at Tax Affinity Accountants Tax Affinity Accountants are experts in Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for small and medium sized businesses (SME's). Helping and supporting limited company owners and self employed people throughout the UK, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success. For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends./ |
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