If you’re self-employed or a landlord, big changes are coming. From April 2026, the government will roll out Making Tax Digital for Income Tax Self-Assessment (MTD ITSA) – a new way to record and report income. At Dunkley’s Accountants in Bristol, we’re preparing for the changes and will provide timely updates and guidance to support our clients affected by the changes.
Who Is Affected?
From 6 April 2026, MTD ITSA will apply to:
- Sole traders and landlords with combined business and property income above £50,000.
- From April 2027, the threshold will extend to those earning above £30,000.
If your income falls below the thresholds at the respective dates, MTD reporting won’t yet apply – though HMRC continues to consult on extending it further in future years.
What Changes Under MTD ITSA?
The key change is how you record and report your figures. Instead of filing one annual Self-Assessment, affected taxpayers must:
- Keep digital records of income and expenses, using MTD-compatible software.
- Submit quarterly updates to HMRC throughout the year.
- File an End-of-Period Statement (EOPS) to confirm your annual totals and make final adjustments.
This means no more leaving your paperwork until January – digital record-keeping will become part of normal business life.
Why Prepare Early?
While April 2026 may sound far away, switching to digital accounting takes time. Many of our clients already use cloud systems like Xero or QuickBooks. Preparing early gives you:
- More time to adjust your systems and habits.
- Fewer surprises when the rules go live.
- Real-time visibility over your cashflow and profit position.
What Software Will You Need?
You’ll need MTD-compatible software that can connect directly to HMRC’s systems. Bridging software can work if you still prefer spreadsheets, but most businesses benefit from moving fully to cloud accounting – making collaboration with your accountant easier.
How Dunkley’s Can Help
At Dunkley’s Accountants, we can help self-employed individuals and landlords prepare for MTD by:
- Reviewing whether your income exceeds the new thresholds.
- Setting up or migrating to MTD-ready software to capture digital records correctly.
- Reviewing quarterly data to ensure accuracy before submission.
We can also integrate your Self-Assessment process with your business goals – ensuring you stay compliant and tax-efficient.
Final Thoughts
Making Tax Digital will modernise how millions of people report their income, but it doesn’t need to be stressful. With the right support and systems in place, you’ll save time, stay organised, and gain better financial insight year-round.
If you’re unsure whether MTD ITSA affects you, or want help setting up a compliant system, contact Dunkley’s Accountants in Bristol for expert tax advice. Call us or book a consultation online to get started on 01454 619900 or email advice@dunkleys.accountants.