An accountant on TikTok has shared crucial advice for millions of UK residents preparing for a significant tax overhaul set to take effect from April 2026. Liane Ranaboldo cautioned that individuals affected by the government’s Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) initiative could face increased challenges ahead.
MTD for ITSA mandates that businesses and landlords with qualifying income maintain digital records and submit quarterly updates to HMRC using compatible software. This change will particularly impact self-employed individuals, business owners, and property landlords. Starting April 2026, taxpayers will no longer submit just one annual tax return but will be required to make five submissions, as disclosed by Liane in a video.
These submissions will consist of four quarterly updates along with a final declaration at the end of the year, a departure from the traditional annual tax return filing in January. Liane emphasized that errors or missed deadlines could result in penalties in addition to the tax bill.
The implementation of MTD for ITSA will be rolled out in two phases for individuals: from April 2026 for those with qualifying income exceeding £50,000 and from April 2027 for those with qualifying income over £30,000. Liane highlighted that HMRC will utilize tax return figures from 2024 to 2025 to determine the first wave of affected individuals based on income, not profit.
To avoid last-minute scrambling, Liane advised taxpayers to file early and organize their financial records promptly. The government’s objective with MTD is to leverage digital technologies to enhance tax compliance and reduce errors, ultimately supporting business productivity.
Transitioning to digital services under MTD aims to simplify tax processes and minimize the tax gap caused by unpaid dues. Keeping digital records and making regular updates through software have been proven to enhance accuracy and streamline tax affairs, benefiting businesses and taxpayers alike.
For more detailed information on MTD for ITSA, visit the government’s official website.