You may have heard or read of the forthcoming changes to how individuals need to report self-employed & property rental income and expenses to HMRC.
Those with gross income exceeding £50,000 (or a combination of each type of income) must register for MTD with effect from 6 April 2026.
Those with gross income exceeding £30,000 (or a combination of each type of income) must register for MTD with effect from 6 April 2027.
Those with gross income exceeding £20,000 (or a combination of each type of income) must register for MTD with effect from 6 April 2028.
An individual may choose to voluntarily register for MTD before the relevant registration deadline.
MTD fundamentally changes the traditional process of a single annual tax return being submitted and adds the additional requirement of quarterly submissions with a final year end Tax Return submission still being required.
Therefore, for tax year 2026-27, those with gross profits exceeding £50,000 will need to keep digital records using HMRC compatible software and make four quarterly submissions to HMRC (in line with the deadlines set out below). In addition, a final declaration will then need to be prepared and filed on or before 31 January following the end of the tax year (akin to the personal tax return you have previously done).
The quarterly submissions will report the income and expenditure for self-employment and rental properties, and the final submission reports final self-employment and rental properties figures and includes all other additional income and/or gains arising during the year.
Please note that there is no change to the tax payment dates, the tax liability will still be calculated as part of the year-end Tax Return preparation.
The reporting and submission deadlines for MTD for ITSA are set out below:
| Reporting Period | Submission Deadline |
| 6 April 26 to 5 July 26 | 7 August 2026 |
| 6 July 26 to 5 October 26 | 7 November 2026 |
| 6 October 26 to 5 January 27 | 7 February 2027 |
| 6 January 27 to 5 April 27 | 7 May 2027 |
| Final Declaration | 31 January 2028 |
In terms of what Bronsens can offer we have decided to offer three levels of service for dealing with MTD quarterly returns.
Bronze – £250+VAT per annum
You provide the summarised quarterly figures and we file the quarterly MTD returns. Landlords with agents should be able to use this service. An example of the format required is attached.
Silver – £350+VAT per annum
You provide the figures for us to prepare digital records and we file the quarterly returns.
Gold – From £500+VAT per annum
We do the bookkeeping for you and prepare the digital records to prepare file the MTD quarterly returns.
We are happy to provide Xero software subscriptions and training for those who wish to do the bookkeeping themselves.
Please contact us for further information regarding the above.
