Making Tax Digital for ITSA: A complete guide for sole traders and landlords
MTD for Income Tax is now live. This guide covers who's affected, which software to use, how quarterly reporting works, and what happens if you miss a submission.
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Figures are estimates for the 2025/26 tax year β speak to a consultant for a precise calculation.
Most employees are on code 1257L, giving a Β£12,570 tax-free allowance. A wrong code can mean you overpay β or underpay β without realising. Check yours on your payslip or P60.
Working from home, mileage, professional subscriptions, and pension contributions can all reduce your bill. Many people miss Β£500βΒ£2,000+ in unclaimed reliefs every year.
From April 2026, sole traders and landlords earning over Β£50,000 must file quarterly via MTD-approved software. The threshold drops to Β£30,000 in April 2027.
Online Self Assessment returns for 2025/26 must be submitted by 31 January 2027. Over 740,000 people filed in April 2026 alone β filing early means knowing your bill sooner.
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The most important recent changes that could affect your tax bill. We monitor HMRC and GOV.UK so you don't have to.
Sole traders and landlords with gross income above Β£50,000 must now keep digital records and file quarterly updates via HMRC-approved software. The threshold drops to Β£30,000 in April 2027 and Β£20,000 in 2028.
Read our guideHMRC reports that 86,270 people filed on Easter Monday alone (6 April), with almost 740,000 filing in April overall. Filing early means knowing your bill sooner and potentially receiving any refund faster.
Source: GOV.UKNearly 340,000 people paid their Self Assessment bill via the HMRC app since April 2025 β a 65% rise year-on-year. HMRC is pushing digital-first, with the 2024/25 deadline of 31 January 2026 now passed.
Source: GOV.UKResearch shows that despite MTD for ITSA affecting an estimated 2.9 million individuals, only 30% are aware of the reforms. Those affected must register, choose compliant software, and begin quarterly reporting.
Read our MTD guideThe 2025/26 tax year began on 6 April 2026. Over 12 million taxpayers are expected to submit returns. Filing early can mean faster refunds β and spreading payments via HMRC's budget plan reduces January bill shock.
Check deadlinesHMRC's new penalty regime is now fully in force. Points accumulate for late submissions β reaching a threshold triggers a Β£200 fine. Unlike the old Β£100 flat penalty, this system escalates quickly for repeat offenders.
Understand penaltiesPlain-English guides written by our qualified consultants β covering everything from MTD to HMRC compliance reviews.
MTD for Income Tax is now live. This guide covers who's affected, which software to use, how quarterly reporting works, and what happens if you miss a submission.
Self-employed, a company director, landlord, or earning over Β£100,000? We explain exactly who needs to file, how to register with HMRC, and the key deadlines you can't afford to miss.
From home-working allowances to pension carry-forward, these are the most commonly overlooked reliefs that could reduce your bill by hundreds or thousands of pounds each year.
An HMRC enquiry or compliance review can be stressful, but most are routine. We explain the different types of HMRC letters, your rights, and why you should always get professional advice before responding.
Individuals, sole traders, landlords and limited companies β all getting more from their tax.
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