Landlords need to be ready for digital tax assessment

Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) is coming – and it will change how landlords and sole traders manage their finances.

From April 2026, anyone earning over £50,000 from self-employment or property income will need to keep digital records and submit quarterly updates to HMRC using approved software.

This move away from the traditional annual Self Assessment process is designed to make record keeping more timely and financial information more accessible throughout the year.

For landlords, especially those with mixed income streams, MTD for ITSA brings changes not only to reporting frequency but also to how financial data is captured and reviewed.

Understanding the requirements and preparing your systems now can help reduce errors, streamline administration, and prevent last-minute complications.

Sole traders face similar considerations, particularly when integrating digital records with day-to-day business activity.

Many are using the transition as an opportunity to simplify bookkeeping and gain a clearer view of their finances throughout the year.

Practical support can make the process more manageable.

Expert advisers can assist with registering for MTD for ITSA, selecting and setting up HMRC-compliant software, step-by-step training, reviewing, and submitting quarterly updates, or providing ongoing support covering both quarterly submissions and the annual tax return.

Having guidance in place helps ensure compliance and reduces the risk of penalties.

With MTD for ITSA on the horizon, knowing what’s required and taking practical steps now will make the transition smoother and provide greater clarity over your financial affairs.