Major changes are coming to self-assessment. From April 2026, many sole traders must keep digital records and submit quarterly updates. Don’t risk penalties – let DG Accountancy Services guide you every step of the way.
Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) is HMRC’s new requirement for sole traders and landlords.
From April 2026, if you meet the criteria, you’ll need to use approved bookkeeping software and file quarterly updates online. Paper records and annual-only submissions will no longer be accepted.
Penalties for late or missed quarterly submissions
Manual records and spreadsheets won’t be accepted
Rushed onboarding if you delay preparation
Potential compliance issues if your income is close to the threshold
Higher costs and stress if you wait until the last minute
Want all the details? Get access to the report by entering your name and email.
1. MTD for ITSA applies from April 2026 for most sole traders and landlords.
2. Digital records are mandatory – no more paper or unapproved spreadsheets.
3. Quarterly updates must be filed with HMRC throughout the year.
4. Annual tax return still required – quarterly reporting is in addition.
5. Combined income counts if you’re a sole trader and a landlord.
6. Approved software (like Xero) is essential.
7. Deadlines are strict – missing them means automatic penalties.
8. No need to pay tax quarterly (yet) – just report.
9. Preparation should start now for a smoother transition.
10. MTD is here to stay – future changes will likely expand requirements.
Want all the details? Get access to the report by entering your name and email.
1. MTD for ITSA applies from April 2026 for most sole traders and landlords.
2. Digital records are mandatory – no more paper or unapproved spreadsheets.
3. Quarterly updates must be filed with HMRC throughout the year.
4. Annual tax return still required – quarterly reporting is in addition.
5. Combined income counts if you’re a sole trader and a landlord.
6. Approved software (like Xero) is essential.
7. Deadlines are strict – missing them means automatic penalties.
8. No need to pay tax quarterly (yet) – just report.
9. Preparation should start now for a smoother transition.
10. MTD is here to stay – future changes will likely expand requirements.
Want all the details? Get access to the report by entering your name and email.
We make MTD for ITSA compliance simple and stress-free for sole traders:
• Seamless onboarding: We’ll set up your digital bookkeeping and guide you through the few steps you need to take.
• Your bookkeeping processed: Our expert team will process all your bookkeeping transactions accurately and efficiently.
• Quarterly submissions handled: Never miss a deadline – our team manages all quarterly HMRC reporting.
• Year end tax return filed: Once the final quarterly report is submitted, our team will immediately work on your year end tax return, no more 31 January stresses and worries for you!
• Fixed-fee pricing: No hidden costs, no surprises.
• Proactive reminders: We keep you ahead of deadlines and changes.
Ready to get compliant?
Book your free consultation – our team would love to hear from you.
We make MTD for ITSA compliance simple and stress-free for sole traders:
• Seamless onboarding: We’ll set up your digital bookkeeping and guide you through the few steps you need to take.
• Your bookkeeping processed: Our expert team will process all your bookkeeping transactions accurately and efficiently.
• Quarterly submissions handled: Never miss a deadline – our team manages all quarterly HMRC reporting.
• Year end tax return filed: Once the final quarterly report is submitted, our team will immediately work on your year end tax return, no more 31 January stresses and worries for you!
• Fixed-fee pricing: No hidden costs, no surprises.
• Proactive reminders: We keep you ahead of deadlines and changes.
Ready to get compliant?
Book your free consultation – our team would love to hear from you.
Curious what MTD for ITSA will cost your business? Our new instant-quote tool is nearly ready. Answer a few quick questions and you’ll receive a no-obligation estimate straight to your inbox as soon as the feature launches.
Curious what MTD for ITSA will cost your business? Our new instant-quote tool is nearly ready. Answer a few quick questions and you’ll receive a no-obligation estimate straight to your inbox as soon as the feature launches.
Curious what MTD for ITSA will cost your business? Our new instant-quote tool is nearly ready. Answer a few quick questions and you’ll receive a no-obligation estimate straight to your inbox as soon as the feature launches.
Most sole traders and landlords with annual business or property income over £50,000 will need to follow MTD for ITSA rules from April 2026. Lower income thresholds are expected in future years.
You’ll need to keep digital records and submit quarterly updates to HMRC using approved bookkeeping software—manual records and spreadsheets won’t be accepted.
No, you’ll still pay your tax annually as before. The main change is quarterly reporting – tax payments remain unchanged for now.
Missing deadlines or failing to submit quarterly updates could lead to automatic penalties and possible HMRC investigations.
We make compliance simple: from setting up your software and processing your bookkeeping, to submitting quarterly updates and your year-end return.
For more information on the above questions plus much more, Download our free guide……
