In a week’s-time 6^th April 2026, personal income tax is changing for both sole traders and landlords in the UK with a turnover or rental income over £50,000. HMRC have implemented what they call Making Tax Digital for Income Tax (MTD ITSA), which essentially replaces the traditional once a year tax return with four quarterly returns, and a final tax submission. It aims to capture the underlying accounting transactions, purchase invoices, and sales invoices with a digital submission to HMRC, very similar to the VAT system.

Our teams have the appropriate HMRC approved software to file these returns on your behalf. Software we have been using for many years with existing providers, so our teams are expertly placed to deal with your questions.

Our experts have already begun to reach out to guide you through the process, demonstrate the software options available to you, get you signed up, and explain the deadlines.

For the implementation year it is understood that there will be no penalties from HMRC for late filing, which is good news for the first batch of taxpayers. In tax years 2026/27 and 2027/28 the turnover threshold will be lowered by £10,000 each year to capture more individuals and landlords into this new system.