First MTD ITSA Quarterly Submission Due by 7 August 2026
Self-employed individuals and landlords across Shropshire are being encouraged to prepare now for one of the biggest changes to the UK tax system in recent years.
Under Making Tax Digital for Income Tax Self Assessment (MTD ITSA), the first quarterly submission for the 2026/27 tax year will be due by 7 August 2026, covering the period from 6 April to 5 July 2026.
The new rules will initially apply to self-employed businesses and landlords with qualifying gross income above £50,000.
While the deadline may still seem some way off, businesses should be reviewing their bookkeeping processes and accounting software to ensure they are ready for the transition.
MTD ITSA is part of HMRC’s wider digital transformation programme, designed to modernise the tax system and improve accuracy in financial reporting.
Instead of filing a single annual Self Assessment tax return, affected taxpayers will need to maintain digital records and submit quarterly updates to HMRC using compatible software.
For many sole traders and landlords, this represents a significant shift in the way financial records are managed.
Businesses that currently rely on spreadsheets, paper records, or annual bookkeeping updates may need to adopt more regular and structured accounting practices.
Julie Williams, Director of Hollies Bookkeeping Services in Shropshire, believes preparation is key to avoiding unnecessary stress as the new system comes into force.
“Making Tax Digital for Income Tax is a major change for many self-employed people and landlords. Although the first quarterly submission deadline is 7 August 2026, businesses should not wait until the last minute to get organised. Good bookkeeping habits and the right software will make the process much smoother and help reduce errors throughout the year,” she said.
One of the biggest advantages of MTD ITSA is that businesses will have a clearer picture of their financial position throughout the year.
Regular submissions can help identify cash flow trends, highlight tax liabilities earlier, and reduce the pressure that often comes with preparing annual tax returns.
However, there are also challenges. Some business owners may feel uncertain about digital record keeping, while others may be concerned about the increased frequency of reporting.
Working with a professional bookkeeper, like The Hollies Bookkeeping in Pontesbury, Shropshire, can help ease that transition and ensure compliance with HMRC requirements.
At The Hollies Bookkeeping Services, the team is already supporting clients across Shropshire and beyond in preparing for MTD ITSA by reviewing bookkeeping systems, introducing cloud accounting software, and helping businesses establish efficient digital processes ahead of the 2026 launch.
Businesses affected by the changes are encouraged to act early by checking whether they meet the income threshold, ensuring their records are digitally maintained, and seeking professional guidance where needed.
With the first submission deadline fast approaching in August, now is the ideal time for self-employed individuals and landlords to take stock of their bookkeeping arrangements and ensure they are ready for the future of digital tax reporting.
Please contact The Hollies Bookkeeping Services by phone on 01743 790086, email at info@holliesbookkeeping.co.uk, or visit www.holliesbookkeeping.co.uk.
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