The shift towards digital tax reporting is continuing, and for many individuals and landlords, Making Tax Digital for Income Tax (MTD ITSA) is now a live requirement.
From April 2026, those with gross business or property income exceeding £50,000 are required to comply with the new rules.
For businesses and individuals across Oxford and Oxfordshire, this represents a significant change in how tax information is recorded and reported.
While the transition may feel substantial, taking a proactive approach can help ensure compliance is achieved smoothly and without unnecessary pressure.
What does this mean in practice?
The move to MTD ITSA changes how income and expenses are recorded and how information is reported to HMRC throughout the year.
Under the new system, individuals are required to:
- Maintain digital records of income and expenses using compatible software
- Submit quarterly updates to HMRC summarising activity
- Complete a final declaration following the end of the tax year
This approach is designed to provide greater visibility over tax positions and reduce reliance on a single year‑end submission.
“The move to digital reporting isn’t just about compliance,” says Wendy Tatham partner at The MGroup. “It gives individuals a clearer, more up‑to‑date view of their financial position throughout the year.”
Why early preparation matters
With quarterly reporting now required, the traditional approach of leaving bookkeeping until the end of the year is no longer practical.
Delays or inaccuracies in record‑keeping can lead to:
- Missed deadlines
- Penalties for late submissions
- Increased administrative pressure
Ensuring systems and processes are in place early can significantly reduce the risk of disruption and allow for a more manageable reporting cycle.
Steps to take now
If your combined self‑employed and rental income exceeds the threshold, now is a good time to review your position.
Key steps include:
- Confirming your income level to determine whether the rules apply
- Reviewing your current bookkeeping approach
- Moving to HMRC compatible accounting software where required
- Establishing a process for maintaining records and meeting quarterly deadlines
“Those who prepare early tend to find the transition far more straightforward,” adds Tim Newton Senior Associate at The MGroup. “It becomes part of the routine rather than a last minute task.”
A move towards ongoing reporting
While the move to quarterly reporting represents a change in approach, it also provides an opportunity for more regular financial insight and better planning.
Having up‑to‑date information throughout the year can support:
- Cash flow management
- Tax planning decisions
- Greater confidence in financial position
A structured and supported transition
Adapting to MTD ITSA does not need to be complex, but it does require a structured and informed approach.
A trusted, expert and supportive approach, backed by independent advice, can help ensure compliance requirements are met while also improving the quality of financial information available.
If you would like assistance reviewing your position, selecting appropriate software or managing your reporting requirements, we are always happy to help
👉 https://www.themgroup.co.uk/contact-us/