The idea of Making Tax Digital Income Tax Self Assessment (or MTD ITSA) might feel like just another hoop you have to jump through. But don’t worry, this article will talk you through exactly what you need to know as someone self-employed.

What is MTD ITSA?

MTD ITSA is set to be a major change coming to the way that Sole Traders, freelancers and landlords report their income and taxes. It’s a new system that is set to require those who fit the criteria to file their tax returns digitally and on a more regular basis. 

HMRC wants to move away from the once-a-year Self Assessment system and have you update your filings quarterly. The push for this stems from the belief that the new quarterly returns will mean you’re less likely to overestimate or underestimate your tax bill.

Who is affected by MTD ITSA?

Any Sole Traders, freelancers, side hustlers or landlords who pass the income thresholds will need to join and comply. 

From April 2026, anybody earning over £50,000 will join this programme (estimated to be around 780,000 people). Those earning over £30,000 are set to join in April 2027. This means that by April 2027, a huge 1.75 million people will be affected by MTD ITSA. 

Four tips to get ready for tax digitalisation

The process of going digital can feel intimidating - but it doesn’t have to be. Here are four quick tips to help you take control.

1. Start using digital tools now

The sooner you embrace digital record-keeping, the easier it will be. Online accounting software can save you time and help keep things organised.

2. Tackle it quarterly

Instead of stressing about the whole year, break it into smaller chunks. Focus on keeping on top of your bank reconciliations to help it feel less overwhelming.

3. Check out our knowledge section

We’re proud to have the number 1 accounting and business blog in the UK. Our knowledge section is packed full of expert tips, tricks and strategies to do pretty much anything.

4. Reach out for help

If you’re feeling confused and overwhelmed, reaching out to a trusted accounting provider like Crunch can help. Whether you’re stressing over tech troubles or tax questions, we’re here to support you!

The bottom line

MTD ITSA might sound scary, but with the right mindset and tools, it’s completely manageable. Embrace digital tools, break things down into small steps and get an accounting partner that will support you through the change. Before you know it, it’ll feel part of your regular routine.

If you’re still not sure about where to start, feel free to book a call with me. Let’s chat about how Crunch can make MTD ITSA work for you.

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