If you’re self-employed and earning over £50,000 (from 2026) or £30,000 (from 2027), you’ll soon need to follow the new Making Tax Digital for Income Tax (MTD for IT) rules.

That means quarterly income and expense reporting, digital record-keeping, and using HMRC-approved software.

Sounds complicated? It doesn’t have to be. Here’s a straightforward guide to getting ready.

1️⃣ Check If You Need to Comply

Before you do anything, make sure MTD for IT even applies to you!

✅ You’re self-employed (a sole trader) or a landlord
✅ You earn more than £50,000 per year from April 2026
✅ Or you earn more than £30,000 per year from April 2027

👉 If you’re under the threshold, MTD for IT won’t affect you yet.

👉 Foster carers are exempt because of Qualifying Care Relief.

2️⃣ Start Using Digital Accounting Software

Under MTD for ITSA, you must keep digital records and submit tax updates through HMRC-approved software.

💻 Popular options include:
🔹 QuickFile – User-friendly and links directly to HMRC
🔹 Xero – Great for small businesses
🔹 FreeAgent – Free if you bank with NatWest or Mettle

3️⃣ Get Used to Quarterly Reporting

Right now, self-employed people submit one tax return a year. Under MTD for IT, you’ll need to send updates every three months.

📌 Quarterly Updates – Report income and expenses every 3 months
📌 Make Adjustments – Made after the submission of the fourth quarterly return
📌 Final Declaration – Instead of a traditional tax return

🔄 Example Timeline (if your tax year starts in April):

Quarter	Submission Deadline
April – June	5th August
July – September	5th November
October – December	5th February
January – March	5th May

⏳ That’s four extra deadlines per year, so planning ahead is key!

4️⃣ Organise Your Record-Keeping Now

Since all income and expenses must be recorded digitally, it’s a good idea to get into the habit of:

📂 Tracking income and expenses as they happen
📸 Keeping digital copies of receipts and invoices
🔄 Setting aside time each month to update your accounts

Good news: Most accounting software automates this, linking to your bank to track transactions for you.

5️⃣ Get Expert Support (So You Don’t Have to Worry About It)

If MTD for IT sounds like a hassle, I will take care of it for you. That way, you can focus on your work without worrying about tax admin.

✔️ I can help you:

• Choose the right software if you don’t already have this
• Get set up with digital record-keeping
• Stay on top of deadlines
• Ensure your tax returns are correct and penalty-free

Final Thoughts

MTD for IT is coming, but with the right preparation, it doesn’t have to be stressful.

✅ Check if you need to comply
✅ Start using digital software
✅ Get used to quarterly updates
✅ Organise your records properly

Want help getting set up? Get in touch—I’ll make the transition as smooth as possible!