Making Tax Digital for Income Tax (MTD ITSA) –
What You Need to Know for 2026
What is Making Tax Digital for Income Tax?
Making Tax Digital (MTD) is a new HMRC system that requires self-employed individuals and landlords to keep digital records and submit updates every quarter instead of one annual tax return.
Who Needs to Comply (and When)?
Self-employed and landlords need to comply, deadlines are as follows:
Income Level Start Date
£50,000+ April 2026
£30,000+ April 2027
£20,000 + April 2028
Real Example For MTD for Tax Returns
If your income was £60,000 in 2024/25, you will need to comply from April 2026.
What Will You Need to Do?
Keep digital records
Use MTD software
Submit 4 quarterly updates
Submit final declaration
Pay tax as normal
What Should You Do Now?
Check your income level
Confirm if MTD applies
Move to digital records
Speak to your accountant or bookkeeper
Cashtrak’s MTD for Income Tax Service
Making Tax Digital for Income Tax is a big change, and for most people it’s going to mean more admin, more deadlines, and more pressure to keep everything up to date.
That’s where we come in.
At Cashtrak, we help you get set up properly from the start and then take care of the ongoing work for you. That includes making sure your records are kept digitally, your quarterly submissions are done on time, and everything ties in correctly at year end.
We’ve already moved a number of clients onto MTD-compliant systems, so we understand the practical side — not just the rules, but what actually works day-to-day. We know where people get stuck, what causes delays, and how to keep things running smoothly without it becoming a burden.
For most of our clients, the biggest benefit is simply not having to think about it. Instead of worrying about deadlines or learning new systems, you can focus on running your business while we make sure everything is done properly in the background.
If you’re unsure how MTD will affect you, or you’d just rather have someone handle it for you, we’re here to help. Find out more information on HMRCs MTD for ITSA by clicking here.
What Our Tax Return (ITSA) Clients Say:
"Carol has spent time on the phone, with both us and HMRC, written out lengthy emails to give us information and calls to explain things. Certainly above and beyond service. Thank you Carol, we are looking forward to being in a much more relaxed position with our HMRC friends! "
Katy Goldswain, owner, White Lime Interiors. www.whitelimeinteriors.com
"I've been looking for someone to help with my accounts and tax for a while now. Over the last couple of years, I've spoken to a number of professionals who have all left me feeling confused & overwhelmed. Then I spoke to Cashtrak.
They not only have a wealth of knowledge, but explain things really clearly & concisely so that I know exactly what to do & where I stand. They're patient & answer questions (even really obvious ones – and I feel that there have been many) quickly and expertly without ever being patronising."
Garry Newman, owner, Garry Newman Therapy Services
Ben & Jo Grey, DG Coaching.
Cashtrak really went above & beyond to help us meet deadlines for tax submissions. Due to a number of delays from the government we were waiting for codes and approvals that took much longer than expected and Cashtrak did everything they could to help get our submissions in on time and helped us avoid any unwanted fines.
We would highly recommend them to other small businesses and self employed people.
Do I still need a tax return under MTD?
Yes — but it becomes a final declaration after quarterly updates.
Do I need software?
Yes — HMRC will not accept manual submissions.
Can I do this myself
You can, but MTD involves much more than just filing a return. Using Cashtrak ensures your data is accurate, your digital links are legally compliant, and you aren't missing out on tax-deductible expenses. With four quarterly updates and a final declaration required every year, our expert management saves you time and protects you from costly errors and HMRC penalties.
Q. I have multiple income sources (e.g., two sole trader businesses or a business and a rental property). Do I need to comply with MTD for ITSA?
A: Yes, if the total combined income from all your self-employment businesses and rental properties exceeds the MTD thresholds you will need to comply. It's the aggregate qualifying income that matters, not the income from individual sources.
What if my income is below £50,000?
You may not need MTD yet — but it’s coming. We recommend following the regulations before they become a legal requirement. This helps you get used to the rules and iron out any problems before the possibility of penalties.
What counts as "Digital Records"?
Digital records include electronic copies of your invoices, receipts, and bank statements. Quickbooks allows you to upload receipts and invoices directly to the software, Hubdoc allows us to capture these automatically for Xero however we believe Xero will have the ability to capture receipts without Hubdoc soon. These tools ensure your records are always HMRC-ready.
Q. Will the deadlines for paying my tax change under MTD for ITSA?
A: No, the payment deadlines for your Income Tax will remain the same as under the current Self-Assessment system (typically 31st January, with payments on account also due 31st January and 31st July if applicable). MTD for ITSA changes how you report your income and expenses throughout the year, not when you pay your tax.
Do I need software?
Yes — HMRC will not accept manual submissions.
How do quarterly updates work?
Every three months, we submit a summary of your income and expenses to HMRC via your software. This provides a real-time view of your tax position throughout the year, helping with better financial planning.
Can my accountant or bookkeeper do this for me?
Yes — and most clients will rely on their accountant or bookkeeper.
Q. I'm not very tech-savvy. How can a bookkeeper or accountant help me transition to MTD for ITSA?
A: We understand that going digital can feel daunting. Our team specialises in making this transition as smooth as possible. We offer personalised support, from helping you choose and set up the right MTD-compatible software to providing training and handling all your quarterly submissions and year-end declarations. Our goal is to take the stress out of MTD for you.