Many sole traders and people owning property will be affected by major changes in managing and reporting their tax information due to MTD ITSA that will start in April 2026. Despite how this shift may seem complex, London accountants are helping their clients deal with it and follow the rules.

What is the meaning of MTD ITSA?

Modernizing the tax system in the UK is the goal that HMRC is pursuing with MTD ITSA. Starting in 2026, those who declare income above £50,000 through self-employment or renting have to record their finances digitally and submit returns to HMRC four times a year with the use of approved software. People who earn more than £30,000 will start paying higher pensions taxes from April 2027.

Spreadsheets and classic paper logs cannot be used anymore. Firms should depend on authorized software to record both their earnings and expenses and deliver correct returns at the designated time.

Why Should You Prepare Well in Advance?

Almost every business in London is used to completing an annual tax return. The speed of the process changes to quarterly submission. A company may be fined for not meeting deadlines or allowing mistakes and delays. Engaging accounting experts in London, business owners can develop proper systems and habits right away.

A number of people use these methods before they sit for an exam:

  • Taking up cloud-based accounting systems such as Xero, QuickBooks, or FreeAgent
  • Setting up bank feeds that automate recording transactions
  • Labelling your incomes and expenses in a standard way
  • If the business manages accounting, teach workers about the basics.

The Advantages of Getting London financial Accountants

It is easier to get through this change with the help of a professional. London accountants assist you in using the right software and fulfilling all the standards set by HMRC from the very first day. They may include:

  • MTD checklists specially made for your business field

A digital submission review and support is given before each passing quarter.

  • Tax advice that uses latest data and information

Landlords are even more responsible for allowable expenses, understanding mortgage interest, and ignoring or missing capital gains tax reporting under the rules of digital reporting.

Don't Wait for 2026

The earlier your business adapts, the fewer surprises you'll face. Whether you're a freelancer in Shoreditch or a property owner in Kensington, partnering with experienced accountants London now means less stress later.

Need help getting started with MTD for Income Tax? Our team of expert London accountants is here to guide you every step of the way.