Richard Curtis highlights the major changes in small business accounts reporting that start in April 2026.
A significant development will reshape the way small businesses in the UK manage their tax affairs from 6 April 2026. VAT-registered businesses are already using Making Tax Digital (MTD) for VAT reporting, which was introduced in 2019; but MTD for income tax self-assessment (MTD for ITSA) is a major change to the reporting and recording of business income.
While the aim is to streamline tax collection and improve accuracy, small business owners must be prepared for a range of new obligations and potential pitfalls.
Understanding MTD for ITSA
MTD is an HMRC initiative designed to modernise the UK tax system. HMRC’s goal is to make tax administration more effective, efficient, and easier for taxpayers through digital
