Making Tax Digital for Income Tax: What Landlords and Small Businesses Need to Know
Written by Holly Bell 10/11/25
If you’re a landlord, sole trader, or small business owner, you may have heard about Making Tax Digital (MTD) – HMRC’s push to bring tax fully into the digital age. From 2026, MTD will become mandatory for self-assessment taxpayers, so it’s the perfect time to get your finances organised and your accounting tech up to date. At Monies, we make sure this transition is smooth, simple, and stress-free
What is MTD for Income Tax & Self Assessment (ITSA)?
Moving tax into the digital age
MTD for ITSA is about moving away from annual paper or online tax submissions. Instead, you’ll submit quarterly digital updates of your income and expenses using HMRC-approved software.
At the heart of MTD is keeping detailed digital records. Every incoming and outgoing transaction needs to be recorded in compatible accounting software and shared digitally with HMRC.
Who Will Be Affected?
Landlords and sole traders
MTD for ITSA is already at the beta testing stage and some self-assessment taxpayers have opted in to the system already.
But if you’re a landlord or sole trader who falls into the following categories, MTD for ITSA will soon become a mandatory requirement:
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From April 2026, with qualifying income over £50,000
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From April 2027, with qualifying income over £30,000
Even if you’re not yet affected, it’s wise to start embracing digital accounting now. This will make the transition smoother and keep your business compliant.
How to Get Ready for MTD for ITSA
Upgrade your accounting software
If you’re already using cloud accounting platforms like Xero or QuickBooks, you’re ahead of the curve. Most software already has MTD templates built in, making quarterly submissions straightforward.
Keep your records digital
Ensure that all transactions are recorded digitally, organised, and ready to report. Paper records or spreadsheets alone won’t cut it.
Submit quarterly updates
Under MTD for ITSA, you’ll need to provide quarterly digital updates to HMRC, instead of waiting until the annual self-assessment deadline.
How Monies Can Help
Expert guidance, no fuss
At Monies, we help landlords and small business owners prepare for MTD for ITSA. We’ll advise you on:
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The best accounting software for your business
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Setting up and upgrading your bookkeeping processes
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Ensuring all submissions to HMRC are accurate and timely
With the right support, MTD doesn’t have to be complicated. Monies takes care of your numbers digitally, leaving you free to focus on running your business.
Making Tax Digital is coming – and it’s easier than you think with the right tools and support.
Talk to our expert team today to get your accounting and tax processes ready, so you can stay compliant, save time, and stay in control of your finances.
