The UK tax system is entering its most significant digital transformation yet. With Making Tax Digital for Income Tax Self Assessment (MTD ITSA) becoming mandatory for millions of taxpayers from April 2026, individuals and businesses must act now.
Preparing for MTD ITSA deadlines is no longer optional—it is essential for compliance, accuracy, and financial control. This practical guide by BNA Consulting London explains the 2026 MTD ITSA policy changes, key deadlines, and a step-by-step action plan to help you transition smoothly.
What Is MTD ITSA and Why 2026 Matters?
MTD ITSA is HMRC’s initiative to modernise income tax reporting by replacing annual Self Assessment returns with digital record-keeping and quarterly submissions.
From April 2026, MTD ITSA will apply to:
- Self-employed individuals
- Landlords
- Taxpayers with annual gross income over £50,000
From April 2027, the threshold reduces to £30,000, making early preparation even more critical.
2026 MTD ITSA Policy Changes Explained
Understanding regulatory changes is the first step in preparing for MTD ITSA deadlines.
Key MTD ITSA changes in 2026:
- Mandatory digital record-keeping
- Quarterly updates sent to HMRC
- End-of-Period Statements (EOPS) for each income source
- A Final Declaration replacing the traditional tax return
- HMRC-approved MTD-compatible software required
These changes are designed to improve accuracy—but they also increase reporting frequency and administrative responsibility.
Who Needs to Start Preparing Now?
You should begin preparing for MTD ITSA deadlines if you are:
- A UK sole trader
- A property landlord
- A contractor or freelancer
- A taxpayer currently filing a Self Assessment
- A business owner earning close to the £50,000 threshold
BNA Consulting London strongly recommends early action to avoid penalties, rushed software adoption, and reporting errors.
Step-by-Step Action Plan for Preparing for MTD ITSA Deadlines
Step 1: Assess Your MTD ITSA Readiness
Review:
- Your income sources
- Existing bookkeeping process
- Current accounting software
- Digital skills or internal resources
A professional MTD readiness review can identify compliance gaps early.
Step 2: Switch to MTD-Compatible Accounting Software
HMRC requires approved digital tools such as:
- Cloud-based accounting platforms
- Bridging software (where applicable)
Your software must:
- Store records digitally
- Submit quarterly updates
- Support EOPS and Final Declarations
BNA Consulting London helps clients select, set up, and integrate compliant solutions.
Step 3: Digitise All Income and Expense Records
Under 2026 rules, you must keep:
- Digital sales records
- Allowable expenses
- Property income details
- Date-stamped transaction data
Manual spreadsheets alone will no longer be sufficient unless supported by compliant bridging tools.
Step 4: Prepare for Quarterly Reporting
Instead of one annual return, you will submit:
- 4 quarterly updates per tax year
- EOPS after year-end
- Final Declaration to confirm total tax liability
Quarterly reporting improves cash-flow visibility but requires consistent record-keeping.
Step 5: Understand MTD ITSA Penalties and Compliance Risks
Late submissions and inaccuracies may result in:
- Points-based penalties
- Financial fines
- Increased HMRC scrutiny
Preparing for MTD ITSA deadlines early significantly reduces compliance risk.
Best Practices for MTD ITSA Compliance in 2026
To stay compliant and efficient:
- Automate data entry where possible
- Reconcile records monthly (not yearly)
- Keep separate records for each income stream
- Work with an MTD-specialist accountant
- Review quarterly submissions before filing
BNA Consulting London provides ongoing MTD ITSA support, ensuring submissions are accurate and stress-free.
How BNA Consulting London Supports MTD ITSA Preparation
As a UK-based advisory firm, BNA Consulting London offers:
- MTD ITSA readiness assessments
- Software setup and training
- Quarterly submission management
- Landlord and self-employed compliance
- HMRC communication and support
We help individuals and businesses prepare for MTD ITSA deadlines with confidence, clarity, and full regulatory alignment.
Local MTD ITSA Support in London and Across the UK
If you are searching for:
- “MTD ITSA accountant London”
- “Preparing for MTD ITSA deadlines UK”
- “MTD ITSA support for landlords”
BNA Consulting London provides local expertise with national coverage, ensuring personalised support tailored to your income structure.
Frequently Asked Questions
MTD ITSA becomes mandatory from 6 April 2026 for individuals earning over £50,000 annually. What is the deadline for MTD ITSA in 2026?
Start by switching to HMRC-approved software, digitising records, and planning for quarterly submissions. How do I prepare for MTD ITSA deadlines?
Yes. Landlords earning above the threshold must comply from 2026. Is MTD ITSA mandatory for landlords?
Yes. BNA Consulting London can manage submissions, software setup, and compliance on your behalf. Can an accountant handle MTD ITSA submissions?
Late submissions may result in penalties under HMRC’s points-based system. What happens if I miss an MTD ITSA deadline?
Final Thoughts: Start Preparing Today, Not in 2026
Preparing for MTD ITSA deadlines is not just about compliance—it’s about gaining better financial insight, avoiding penalties, and staying ahead of regulatory change.
With 2026 approaching fast, now is the ideal time to take action.