Making Tax Digital for Self‑Assessment: Are You Ready For 2026?

From 6 April 2026 HMRC moves Self‑Assessment to Making Tax Digital for Income Tax (MTD for ITSA). If your business or property income tops £50,000, you’ll need cloud accounting software, keep digital records and file quarterly digital tax updates plus a year‑end declaration. Sole traders, landlords, limited company directors—anyone on Self‑Assessment counts. For painless MTD compliance, tap Blue Rocket Accounting for digital bookkeeping, tax planning and filings.

Wait… what’s actually happening?

Making Tax Digital for Income Tax Self‑Assessment (MTD for ITSA) is HMRC’s plan to move Self‑Assessment online—properly online. From the 2026/27 tax year you must:

• Keep records digitally (within accounting software).
• Send quarterly updates of income & expenses straight from your software.
• Send an End‑of‑Period Statement (a tidy‑up of your figures for the tax year) and one Final Declaration (your final “all done, tax me” sign‑off) – together they replace today’s single January tax return.

Think of it as four bite‑sized tax returns and one final wrap‑up—and, yes, HMRC really does want them on time.

Who will it affect?

(Short answer: lots of people—possibly you.)

If you file a Self‑Assessment and any of these apply, congrats—you’re in the first wave:

• Sole traders earning over £50k.
• Limited company directors who take dividends and earn over £50k.
• Landlords & property owners with rental income over £50k.
• Anyone else whose combined business and/or property income tops £50k.

Earning £30k‑£50k? Your start date is 6 April 2027. Under £30k? HMRC hasn’t pressed launch yet—but we all know it’s coming.

What do I need to do—and when?

From now to April 2025 – Choose your tech

• Pick MTD‑compatible accounting software (Xero, QuickBooks, FreeAgent).
• Or hand your books to Blue Rocket—we’ll sort the tech and the data.

6 April 2026 – Digital day one

• Start keeping digital records from the very first day of the tax year.

Every quarter in 2026/27 – Send your updates

• Q1 update by 5 August
• Q2 update by 5 November
• Q3 update by 5 February
• Q4 update by 5 May

Pro tip: Quarterly updates aren’t tax payments—they’re snapshots. The payment deadlines stay exactly the same (31 Jan & 31 Jul). Budget accordingly!

How Blue Rocket Accounting can help (and keep you out of trouble)

• Software set‑up & training – Xero or QuickBooks.
• Real‑time bookkeeping – we capture every receipt so you don’t lose sleep (or tax relief).
• Quarterly check‑ins – we review the numbers before they beam to HMRC.
• Unlimited Jargon‑free support – call, email, or pop in for a cuppa; we speak plain English, not tax‑bot.

Ready for help going digital?

The clock is ticking. Book your free discovery call with Blue Rocket Accounting today and we’ll make sure Making Tax Digital is—dare we say it—not rocket science.

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