What is MTD ITSA?
Making Tax Digital for Income Tax (MTD ITSA): What You Need to Know (Without the Jargon)
By a fellow busy mum and small business owner
Let’s be honest, when HMRC announced Making Tax Digital for Income Tax Self Assessment, or MTD ITSA as it's sometimes called, most of us didn’t exactly cheer. If you’re self-employed, a landlord, or someone juggling a side hustle while trying to stay on top of receipts, it probably just sounded like more admin.
As a mum of two who’s also running a business, I completely understand. The last thing any of us needs is more paperwork or another confusing change. But don’t worry, I’ve got you. This blog is here to explain it all in plain English, with zero jargon and zero stress.
What is MTD ITSA?
Making Tax Digital for Income Tax Self Assessment is HMRC’s plan to modernise how we report our income. The big change is that instead of sending in one tax return a year, you’ll be submitting updates to HMRC every three months using digital software.
That means:
You’ll keep your income and expense records digitally
You’ll send updates to HMRC every quarter
You’ll use MTD-approved software to do it
That’s really it. It’s more frequent, but potentially less stressful once you get into the rhythm.
Who does it apply to?
If you’re self-employed, or if you rent out property, and you earn more than £50,000 a year in total from those sources, then MTD ITSA will apply to you from April 2026.
If you earn between £30,000 and £50,000, you’ll join the scheme from April 2027.
If you earn under £30,000, you’re not included yet, but HMRC has said they’re reviewing it.
So even if it’s not quite time for you to start, it’s a good idea to get ahead of it.
What’s changing?
Here’s a simple comparison:
Now
You send one tax return each year, usually in January
You might use spreadsheets or handwritten notes
You submit it through HMRC’s website
Under MTD ITSA
You’ll send four quarterly updates plus a final statement at the end of the year
You’ll keep all records digitally
You’ll submit through approved software
Think of it as checking in with HMRC more regularly, instead of saving everything up and hoping it makes sense at the end of the year.
Is this just more work?
At first, it might feel like it, especially if you’re already spinning plates with work, kids, and everything in between. But once you're set up with the right tools, it can actually make things easier.
You’ll have a clearer view of how your business is doing throughout the year
You’ll be less likely to get hit with a surprise tax bill
You won’t have to scramble in January to pull everything together
And if you’re already using accounting software, you’re halfway there
Is it time to hire a bookkeeper?
With these changes coming in, now might be a good time to think about bringing in a bookkeeper, especially if you’re not confident with numbers or just don’t have the time to keep up with everything.
Quarterly submissions can easily sneak up on you, and the last thing you want is to fall behind and face penalties or fines.
Find someone you can relate to, someone you feel you can trust, and most importantly, someone who will be helpful and supportive, not intimidating. A good bookkeeper won’t just handle the numbers — they’ll give you peace of mind so you can focus on running your business and your life.
This isn’t about selling anything. It’s about recognising that we all need support sometimes, and having someone in your corner who understands the system can make a big difference.
How to get ready without the stress
Here’s a simple starting point:
Check if you’re affected
Add up your total income from self-employment and rental properties. If it’s over £50,000, you’ll need to be ready for April 2026.
Get into the habit of keeping digital records
Start now, even if it’s just logging your expenses in an app or cloud spreadsheet.
Choose your software
There are loads of easy-to-use options like QuickBooks, FreeAgent, Xero, or even simpler tools depending on your business size.
Ask for help if you need it
Whether it's a bookkeeper, accountant, or even a business-savvy friend, don't be afraid to reach out. You don’t have to figure it all out on your own.
You’re not alone
This is new for almost everyone, so don’t worry if you don’t feel completely on top of it yet. HMRC knows it’s a big shift, which is why they’ve delayed the rollout a few times already.
The good news is, you’ve got time to ease into it. Start by getting comfortable with the software, and try to make small changes now so it doesn’t feel like a big jump later on.
Final thoughts
MTD ITSA might sound like just another thing on your already long to-do list, but it really doesn’t have to be scary. With the right support, a few new habits, and some patience, it can actually make your tax life easier and more predictable.
And if you’re already balancing business, family, home life, and everything else that comes with being self-employed, then trust me, you can definitely handle this too.