Making Tax Digital for Income Tax Self Assessment: Who Must Comply First & How to Prepare in 2025 💻📊| Accountants In Essex

Kyle Randall
Aug 14
2 min read

Making Tax Digital (MTD) is coming for Income Tax Self Assessment (ITSA) — and if you’re self-employed or a landlord, these changes will affect how you keep your records and file with HMRC.

As professional accountants in Essex, we’re already helping clients get ready for the new rules starting April 2026, with some having to comply sooner than others. Here’s what you need to know for 2025/26.

📅 When Does MTD for ITSA Start?

The rollout begins in stages:

From April 2026 – If your annual business or property income is over £50,000.
From April 2027 – If your annual income is over £30,000.

If you’re under these thresholds, MTD won’t apply to you yet — but getting prepared now will make life easier later.

🧾 What Will Change Under MTD?

Under the new rules, you must:

✅ Keep digital records of income and expenses (no more paper-only systems)

✅ Use HMRC-compatible software to store and send your records

✅ Submit quarterly updates instead of one yearly Self Assessment tax return

✅ Send an End of Period Statement (EOPS) and Final Declaration each year

This means more frequent reporting, but it can also help you stay on top of your tax bill and avoid last-minute surprises.

⚠️ Common MTD Myths

❌ “I can still just use spreadsheets.” – You’ll need to use approved digital software (though spreadsheets may be linked with bridging tools).

❌ “I can ignore it until 2026.” – Starting early means no rush, no missed deadlines, and a smoother transition.

❌ “It won’t affect landlords.” – Landlords with rental income over the threshold must comply, too.

💡 How to Prepare in 2025

If you want a stress-free switch to MTD, start now:

Review your income levels – See if you hit the £50k threshold.
Choose MTD-compatible software – Xero, QuickBooks, FreeAgent, etc.
Get bookkeeping in order – Accuracy matters more than ever.
Ask your accountant – We can train you on the new process or handle it for you.

🏦 Why Work With Accountants in Essex for MTD?

We’re already guiding our self-employed and landlord clients through MTD preparation — setting up digital systems, managing quarterly updates, and ensuring they’re HMRC-compliant from day one.

Working with a proactive accountant means:

✅ You’ll never miss a tax return deadline

✅ Your tax return payment will be accurate

✅ You’ll claim all allowable expenses under the new system

✅ You’ll save time and stress by letting us handle the admin

📩 Contact us today and let our expert accountants in Essex get you ready for Making Tax Digital — before the rush hits in 2026.

accountants in london, accountant in london, accountants in essex, accountants in chelmsford essex, accountants near me, accountant, uk accountant, accountant essex, essex accountant, personal finance, business finance, financial tips, financial advice, savings account uk, high interest savings, business current account, personal current account, workplace pension, lifetime isa, stocks and shares isa, tax free investments, credit card uk, credit score uk, financial planning, budgeting tips, self employed accountant, small business accountant, freelance accountant, retirement planning uk, property ladder uk, first time buyer uk, money management, investment advice uk, tax return help, essex financial advisor, financial goals uk