If you’re a landlord or sole trader earning over £30,000, you’ll soon need to manage your tax in a more digital way. The government is rolling out Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) — a new system that helps you keep records online and send updates to HMRC every quarter using approved software.

The change will happen in two stages:

• From April 2026, for those earning over £50,000.
• From April 2027, for those earning over £30,000.

The aim is simple — to make tax easier, more accurate, and less stressful. By keeping digital records, you’ll spend less time sorting paperwork and reduce the risk of mistakes that can lead to under‑ or over‑payments. HMRC will also be able to offer more tailored support based on your digital updates.

This move follows the success of Making Tax Digital for VAT, which started in 2019. It’s part of HMRC’s wider plan to modernise how small businesses handle tax and close the £5 billion gap caused by errors in Self Assessment. Many countries already use similar digital systems, and the UK is catching up.

In short, MTD for ITSA means:

• Keeping your records digitally.
• Sending quarterly updates online.
• Submitting your annual tax return through compatible software.

It’s designed to save time, reduce errors, and make tax simpler for everyone; whether you’re managing rental income or running a small business.