If you’re self-employed or a landlord, you’ve probably heard the term Making Tax Digital floating around, and maybe felt a wave of dread wash over you.

I get it. Anything with the word “tax” in it can feel overwhelming, especially when you’re already juggling a full client list, the day-to-day of running your business, AND trying to keep on top of your finances.

So let me cut through the noise and give you the straight-talking version – what MTD for Income Tax actually means, what’s changing, and how I can help you get ready without the stress.

1^st – What IS Making Tax Digital for Income Tax?

Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) is a government initiative that changes how self-employed people and landlords report their income to HMRC.

Instead of one annual Self-Assessment tax return, you’ll be submitting quarterly updates throughout the year, plus a final declaration at the end.

Here’s who it applies to, and when:

• From April 2026 – Sole traders and landlords with qualifying income over £50,000
• From April 2027 – Qualifying income over £30,000
• From April 2028 – Qualifying income over £20,000

“But I already do my Self-Assessment every January”

I know – and this is one of the biggest worries I hear. But here’s the thing: MTD doesn’t mean filing in a full tax return, four times a year.

The quarterly updates are much lighter touch than a Self-Assessment. They’re essentially a summary of your income and expenses for that quarter.  And if you’re using the right software, they can be incredibly quick to complete.

You’ll still have one tax bill, paid at the usual time. Your payment deadlines don’t change.

Let’s bust some common myths

Myth: “I’ll have to pay tax four times a year”

False. You’ll still receive one annual tax bill. MTD simply changes how you report, not how you pay.

Myth: “HMRC will be able to see my bank account”

Absolutely not. Connecting your bank to bookkeeping software is between you and your software.  HMRC only sees what you submit to them.

Myth: “This is going to be really complicated”

It doesn’t have to be! With the right system in place, and the right support, most of my clients find it simpler than they expected. The hard part is getting started.

Myth: “I can just keep using my spreadsheet”

You can only continue using spreadsheets if you also use “bridging software” to make HMRC compatible submissions. For most sole traders, switching to MTD compatible bookkeeping software is the simpler path.

Myth: “If I get it wrong I’ll get a massive fine”

HMRC has actually introduced a more lenient points-based system. You’d need to miss multiple deadlines before incurring a penalty, and fines won’t even kick in until April 2027. You have time to get this right.

What do you actually need to do?

Here’s the practical checklist:

• Work out whether MTD applies to you (and when).
• Register separately with HMRC for MTD.  It’s not automatic, even if you’re already on Self-Assessment.
• Choose and set up MTD compatible bookkeeping software (I support FreeAgent and Xero).
• Start keeping digital records of your income and expenses.
• Submit quarterly updates by the deadlines: 7^th August, 7^th November, 7^th February, 7^th May.
• Complete your end-of-year update and final declaration by 31^st January.

How can I help?

Whether you want to understand what MTD means for your specific situation, get your bookkeeping set up properly, or have someone walk you through the software, I will support you.

Here’s how we can work together:

• MTD for ITSA Power Hour – A focused 1:1 session to get you set up and confident (FreeAgent or Xero).
• Business Finance Academy – My membership for sole traders who want ongoing support, training and a safe space to ask questions.
• MTD Training & Workshops – I regularly deliver group training on MTD for ITSA, making it simple and jargon-free.
• Bookkeeping done for you – You provide the information and we’ll do the rest – Bookkeeping, MTD submissions, rep0orting – this is a bespoke package for you and your business.

“You don’t need to figure this out alone. With the right support, MTD doesn’t have to be something you dread — it can actually make managing your finances easier.”

If you’re not sure where to start, drop me a message and we’ll work it out together. 💜