From April 2026, Making Tax Digital for Income Tax (MTD for ITSA) will begin to affect many sole traders and landlords.
On paper it sounds simple:
Instead of filing once a year, you file quarterly. In reality, it’s a structural shift in how your tax affairs are managed. This isn’t “four mini tax returns instead of one”.
The old Self-Assessment cycle was largely retrospective. You gathered everything together once a year, reconciled it, filed it and moved on.
MTD changes the rhythm completely. It requires:
- Digital records throughout the year
- Regular review of income and expenses
- Quarterly submissions and tighter deadlines
- A final declaration to confirm the position
It moves from an annual event to an ongoing process. So, the reality is not just a scheduling change – it’s also a behavioural one.
See our MTD for Income Tax timeline.
The Real Pressure Point: Your Records
Quarterly submissions are the visible part. The tip of the iceberg visible above sea level. The real pressure sits underneath:
- Bank feeds that disconnect
- Transactions that aren’t categorised properly
- Personal and business spending mixed together
- Records that arrive late.
Under an annual system, those issues were inconvenient. Under MTD for ITSA, they compound.
Which means the real question is not “How do I submit quarterly?”. It’s “How clean and structured are my records month to month?”.
You might find our MTD for Income Tax checklist helpful.
Why MTD Will Feel Different for Many People
For some people – particularly those already using good software and keeping up-to-date records – the transition will be manageable.
For others, especially those used to bringing everything together once a year, or those still keeping largely paper records, it will feel like a significant shift.
That’s why it is important to approach MTD for ITSA as more than a compliance change. It’s a workflow change.
How We Approach MTD for ITSA at Affinity Richmond
At Affinity Richmond, we’ve structured our MTD support around one principle:
If the process works, the submissions will look after themselves.
That means:
- Establishing clean digital systems
- Setting clear expectations about who does what
- Reviewing data before deadlines become urgent
- Building consistency throughout the year
MTD for ITSA introduces more touchpoints and greater compliance responsibility. Making the process predictable, makes it manageable
A practical note
For many sole traders and landlords, MTD becomes a legal requirement from 2026 onwards. From there, more and more people will be included.
It changes the framework you’re working within – but it doesn’t have to feel dramatic. The real adjustment will be getting comfortable with the regular rhythm of record-keeping and review. And that is something you build over time.
What This Means in Practice
Before thinking about software or deadlines, the more useful question is:
How much involvement do I realistically want in this?
Some clients prefer to keep control and simply need compliant submission.
Others want more structure and reassurance.
And some would rather have it handled end-to-end.
We’ve set out those options clearly in our Foundation, Supported and Managed service levels.
Learn more about our Making Tax Digital for Income Tax services.
If you are unsure which feels appropriate, and you want to talk it through, we’re happy to help you decide on a sensible place to begin.
