MTD ITSA: What No One’s Talking About (But Should Be)
Everyone’s talking about Making Tax Digital (MTD) deadlines - but not many are talking about what it actually means for the people behind the numbers.
If you’re self-employed or a landlord earning over £50,000, MTD for Income Tax Self Assessment (MTD ITSA) will apply to you from April 2026. You’ve probably seen the headlines: digital records, quarterly updates, new software… but beneath the jargon, there’s a bigger story — one that could completely change the way you run your business.
At RGR Payroll & Accounting Services, we’ve been watching these changes closely, and here’s what most people are missing about MTD ITSA.
1. It’s Not Just About HMRC — It’s About You
Yes, Making Tax Digital is an HMRC initiative. But it’s not just a tick-box exercise for compliance; it’s an opportunity to understand your finances in real time.
Most small business owners only look at their figures once a year, usually in a panic around Self Assessment season. But under MTD ITSA, you’ll be updating your income and expenses every quarter.
That means:
You’ll always know how much tax you owe (no more January surprises)
You’ll see your true profits throughout the year
You can make better decisions about spending, saving, and investing
MTD is really about turning bookkeeping into a business tool, not just a tax task.
2. Multiple Income Streams? You’ll Be Hit Hardest (and Soonest)
If you’ve got more than one source of income - say, you’re a sole trader and a landlord - MTD ITSA will affect you sooner than you think.
Each income type will need its own digital records and quarterly submissions, even if they’re both in your name. That means more admin if you’re not prepared… but total clarity once you are.
It’s one of the biggest hidden challenges of the MTD rollout, and it’s why we’re helping clients with multiple income streams simplify and automate their systems now.
3. The Real Deadline Isn’t 2026 — It’s Your Next Tax Return
Most people think April 2026 is the starting line, but in reality, it’s the finish line.
If your January 2026 tax return is a last-minute rush (again), you’ll roll straight into MTD ITSA unprepared. That means setting up software, cleaning up your records, and learning new rules - all while trying to run your business.
Getting your books in order now makes next year’s tax return smoother and puts you in the perfect position to go digital. Think of this as your warm-up lap.
4. MTD Isn’t Just About Software - It’s About Systems
Installing MTD-compatible software like Xero, QuickBooks or FreeAgent is a great start — but that alone won’t make you MTD ready.
You’ll need a reliable system for:
- Logging income and expenses digitally
- Reconciling your bank transactions
- Categorising your records correctly
- Keeping digital copies of invoices and receipts
That’s where working with a bookkeeper who understands MTD ITSA makes all the difference. At RGR, we help clients choose software that fits their business - then build the processes around it so it actually works.
5. The Biggest Benefit No One Mentions: Peace of Mind
Once your records are digital, you’ll have constant visibility of your numbers - and that’s a game-changer.
No more guessing what you owe HMRC. No more scrambling through receipts. No more worrying about missing deadlines.
With Making Tax Digital, you get to feel in control all year round — and that’s something every small business owner deserves.
Simplify Your Finances with RGR
If you’re wondering how MTD ITSA will affect you, or whether your current system is MTD ready, now’s the perfect time to talk.
We’ll help you choose the right software, get your bookkeeping organised, and show you exactly what to expect before April 2026.
Get MTD ready the easy way - with RGR Payroll & Accounting Services.
