Making Tax Digital For Income Tax (MTD ITSA)

Understanding MTD

Making Tax Digital (MTD) is the government’s plan to modernise the UK tax system. For many sole traders and landlords, it represents a significant change in how you keep records and report to HMRC.

From April 2026, if your business or property income is over £50,000 a year, you’ll need to comply with MTD.

From April 2027, this requirement will extend to those earning over £30,000 a year.

Instead of filing a single Self Assessment once a year, you’ll need to keep digital records and send quarterly updates to HMRC, along with a final annual declaration if you are above these thresholds.

What does MTD for Income Tax mean in practice?

Quarterly reporting – every three months you’ll submit income and expense summaries to HMRC.

Digital record-keeping – paper records and spreadsheets won’t be enough. You’ll need MTD-compatible software (like Xero or QuickBooks).

Year-end finalisation – similar to the current Self Assessment, you’ll confirm your figures and apply reliefs or allowances at the end of the year.

Payment deadlines – your tax payment dates don’t change (still January and July), but you’ll have a clearer picture of what’s due throughout the year.

Making Tax Digital For Income Tax (MTD ITSA)

How can we help?

We know this feels like a big shift — but we’re here to make it painless.

Our MTD service includes:

Setup & Software – getting you started with MTD-compliant software like Xero, tailored to your business.

Digital Record Training – showing you (or your team) how to record income, expenses, and receipts quickly and correctly.

Quarterly Submissions – preparing and submitting your reports to HMRC on time, every time.

Tax Planning Throughout the Year – with quarterly data, we can forecast your tax bill early, giving you time to plan ahead.

End-of-Year Review – finalising your accounts to make sure all reliefs and allowances are applied before the annual declaration.

Ongoing Support – we’re only a call or email away whenever you need advice.

Why act now?

Even if you’re not yet required to comply with MTD, preparing early will save stress later. By getting your systems and processes in place now, you’ll avoid last-minute scrambles when deadlines arrive. Plus, many clients find that moving to digital bookkeeping gives them:

Real-time visibility of their cashflow and profit.

Less paperwork (goodbye shoebox of receipts!).

Better financial decisions thanks to live data.