HMRC has recently started writing to sole traders and landlords whose income from self-employment and property is close to or above £50,000.
Why?
To warn and prepare them for one of the biggest changes in tax reporting:
Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) — coming into force from April 2026.
❓ What Is MTD for Income Tax?
Making Tax Digital (MTD) is HMRC’s plan to modernise the tax system by moving it online. MTD for Income Tax means:
No more once-a-year tax return
You’ll submit quarterly income and expense updates
You’ll need MTD-compatible software
An end-of-period statement and final declaration will be due after the year ends
This is a big change from the current once-a-year Self Assessment and could affect how you manage your bookkeeping throughout the year.
📅 Who Is Affected and When?
If you earn over £50,000 from self-employment or property income, you must comply from April 2026
If your income is over £30,000, you’ll join MTD in April 2027
Under £30,000? You’re safe for now, but expect changes down the road
🧩 What This Means for You
This shift means you’ll need to:
✅ Keep digital records
✅ Use compatible accounting software
✅ Get into the habit of regular bookkeeping
✅ Submit information every 3 months, not just once a year
Sounds overwhelming? It doesn’t have to be.
💡 How Cashtrak Can Help
At Cashtrak, we’re already helping clients prepare for MTD — and we’re here to support you every step of the way.
Here’s How We’ll Gently Ease You In:
🧾 Quarterly bookkeeping support — done for you or with you
💻 Software setup & training (we recommend MTD-ready software like Xero)
🗓️ Timely reminders and guidance on when and what to submit
☁️ Digital recordkeeping services via apps like Hubdoc
🤝 A real person to talk to whenever you’re unsure
We know this is a big change. But like all tax changes, it’s manageable — especially with the right support in place early.
✅ Ready to Start Preparing?
Even though April 2026 feels a long way off, HMRC is starting the process now — and so should you.
If you’ve received a letter or think you might be affected, get in touch with Cashtrak today for a free initial chat. We’ll explain what it means for you and map out a stress-free transition plan that suits your business.
📩 Contact us now and get ahead of the curve.
Email: info@cashtrak.co.uk
Email: info@cashtrak.co.uk
Call or Whats App: 01865 522785.
Contact us through our website by clicking here.
Book a free, no obligation appointment with our MTD for ITSA expert, Carol - click here