Deadline in April 2026: What Businesses Need to Know
The UK government’s Making Tax Digital (MTD) for Income Tax Self-Assessment (ITSA) is set to roll out in April 2026, bringing significant changes for businesses, landlords, and self-employed individuals.
If you haven’t started preparing, now is the time to take action. This blog will break down what the upcoming deadline means and how you can stay compliant with minimal disruption to your business.
What is MTD for ITSA?
Making Tax Digital is the government’s plan to modernise the UK’s tax system, making it easier to track income and expenses digitally. Instead of filing an annual Self-Assessment tax return, businesses and landlords earning over £50,000 will need to:
✅ Keep digital records
✅ Submit updates quarterly using MTD-compliant software
This means saying goodbye to manual spreadsheets and paper records!
Who Will Be Affected?
From April 2026, MTD for ITSA will apply to:
✅ Self-employed individuals and landlords with annual income over £50,000.
✅ Those earning between £30,000 and £50,000 will have until April 2027 to comply.
✅ General partnerships will also be included in later phases.
✅ Limited companies and smaller businesses will likely be introduced at a later stage.
Key Changes You Need to Prepare For
✅ Quarterly Digital Updates – Instead of an annual tax return, you will need to submit digital records every quarter.
✅ MTD-Compliant Software – Spreadsheets and manual records won’t be sufficient. Businesses must use MTD-compatible software such as Xero, QuickBooks, or FreeAgent.
✅ End-of-Period Statements (EOPS) – At the end of the tax year, you’ll need to submit a final declaration to ensure everything is accurate.
✅ Keeping Digital Records – Paper records won’t be compliant. Everything must be stored digitally.
How to Prepare Before April 2026
✅ Assess Your Current Process – If you’re still using spreadsheets or manual bookkeeping, now is the time to switch to MTD-ready software.
✅ Choose the Right Software – Research and invest in HMRC-recognised accounting software that integrates with MTD.
✅ Get Professional Advice – Work with an accountant who understands MTD and can help streamline your transition.
✅ Stay Informed – HMRC may provide updates and additional guidance as the deadline approaches.
✅ Plan for Quarterly Submissions – Adjust your internal processes to ensure you’re meeting quarterly deadlines without last-minute stress.
What Happens If You Don’t Comply?
Failing to meet MTD requirements can result in penalties from HMRC. The new points-based penalty system will apply, meaning businesses that repeatedly miss deadlines will face increasing fines. Ensuring compliance now will help you avoid unnecessary financial penalties.
Final Thoughts
April 2026 may seem far away, but businesses that act early will have a smoother transition.
Embracing digital tax reporting will not only help you stay compliant but also provide better financial insights and efficiency in the long run.
If you need support in preparing for MTD, get in touch for a free initial consultation.
Don’t let tax regulations and expense management uncertainties hinder your business growth. Your financial success starts with a conversation – contact us now.
This is a basic guide prepared by Core Connect Accountants for their clients. It should not be used as a definitive guide since individual circumstances may vary. Specific advice should be obtained, where necessary.
by Cindy Tan FCCA @ Core Connect Accountants
