What if I have more than one income source?

If you have multiple income streams, such as rental income and self employed income, you will need to keep separate digital records and submit updates for each.

What if my rental income is jointly owned?

If you own a rental property jointly, each individual is responsible for reporting their share of the income. You will each need to: • Keep digital records of your share • Submit your own quarterly updates • Complete your own final declaration HMRC does not allow joint submissions.

Will I still need to submit anything at the end of the year?

Yes. Although the traditional tax return will be replaced, you will still need to submit a final declaration to confirm your full tax position.

Do I need to use software?

Yes. Making Tax Digital requires the use of approved accounting software to keep records and submit updates to HMRC.

Making Tax Digital | Belles Accountants

Making Tax Digital

The way you report your income is changing

The world of tax is changing again.

Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) is the next step in HMRC’s move towards digital reporting, and it will affect many individuals and business owners.

With the right preparation, it doesn’t need to feel complicated or overwhelming.

Speak to our team

What is Making Tax Digital?

From April 2026, HMRC will require many individuals to keep digital records and submit quarterly updates using approved accounting software, rather than filing one annual tax return.

If you have self employed income or rental income (based on income, not profit), you will need to maintain your records digitally using compatible software.

Who will be affected?

Making Tax Digital for Income Tax will apply if you are:

A sole trader with income over £50,000 (from April 2026)
A landlord with property income over £50,000, including furnished holiday lets and overseas property
An individual with combined sole trader and rental income over £50,000

The thresholds will reduce over time:

From April 2027 → £30,000
From April 2028 → £20,000

If you have more than one source of income, such as both rental and self employed income, you will need to keep separate digital records and submit updates for each.