For years, Making Tax Digital felt like something that only affected VAT-registered businesses. That is about to change. From April 2026 the regime expands into Income Tax Self Assessment, and Oxford’s many landlords and sole traders will be expected to file quarterly updates and a year-end declaration through MTD-compatible software. This piece sets out what is actually changing, who is in scope and the practical steps to take now.
What is actually changing
Under MTD for Income Tax Self Assessment (MTD ITSA), affected taxpayers will no longer submit a single annual tax return in the traditional way. Instead you will keep digital records and send HMRC a summary of income and expenses every quarter, followed by a final declaration after the tax year ends. In practice that means four in-year submissions plus a year-end process — a real change of rhythm for anyone used to a once-a-year scramble.
Who is in scope, and when
The rollout is phased by income level. From April 2026 it applies to sole traders and landlords with qualifying income above £50,000. From April 2027 the threshold drops to £30,000, with smaller taxpayers expected to follow later. “Qualifying income” means your gross self-employment and property income combined — before expenses — so it catches more people than you might expect, particularly Oxford landlords with two or three properties.
What Oxford landlords should do now
- Check your numbers. Add up your gross rental and trading income to see which phase you fall into.
- Move to digital records. Spreadsheets alone will not be enough; you will need MTD-compatible software or a bridging tool.
- Get your bookkeeping current. Quarterly filing only works if your records are kept up to date through the year, not reconstructed each spring.
- Plan for the workload. Four submissions a year is more touch-points — many landlords will want their accountant to handle the quarterly filings.
How we can help
We are already moving affected clients onto compatible software and quarterly bookkeeping ahead of the deadline, so the switch is calm rather than last-minute. If you let property in or around Oxford and are unsure whether MTD ITSA will apply to you, get in touch and we will confirm your position and map out a simple plan.
Need advice tailored to your situation? Talk to our Oxford team.