Making Tax Digital
Making Tax Digital for Income Tax
Making Tax Digital for Income Tax
What is Making Tax Digital for Income Tax?
Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) is HMRC’s initiative to modernise the UK tax system. From April 2026, self-employed individuals and landlords with annual income over £50,000 will be required to keep digital records and submit quarterly updates to HMRC using compatible software.
MTD for ITSA replaces the traditional annual Self Assessment tax return with a more frequent, digital reporting process. This represents one of the most significant changes to the UK tax system in decades.
Who is Affected by MTD for ITSA?
MTD for ITSA will apply in phases based on income levels. From April 2026, self-employed individuals and landlords with annual income above £50,000 must comply. Those with income between £30,000 and £50,000 will be required to join from April 2027.
If you are a landlord earning rental income, a sole trader, or a freelancer, you will be required to maintain digital records and submit quarterly updates to HMRC — even if you are already completing a Self Assessment tax return.
How We Help
Quarterly Reporting Requirements
Under MTD for ITSA, instead of a single annual tax return, you will need to submit four quarterly updates to HMRC each year — summarising your income and expenses for each quarter. A final declaration will replace the annual Self Assessment tax return at the end of the tax year.
Software & Digital Record Keeping
HMRC requires that all records under MTD for ITSA are kept digitally using HMRC-recognised software. This means paper records and spreadsheets alone will not be sufficient unless used with bridging software. We can help you select the right accounting software and ensure your digital records meet HMRC’s requirements.
How We Help You Stay Compliant
Our team will work with you to ensure a smooth transition to MTD for ITSA. We provide personalised advice, help you choose the right software, assist with digital record-keeping, prepare and submit your quarterly updates, and complete your end-of-year final declaration — keeping you fully compliant with HMRC’s requirements.
Additional MTD Services
MTD Software Setup & Training
We assist you in setting up HMRC-compatible accounting software such as QuickBooks, Xero, FreeAgent or Sage. We provide training to help you confidently manage your digital records and submit your quarterly updates on time.
Quarterly & End of Year Filing
We prepare and submit all four quarterly updates on your behalf, ensuring each submission is accurate and on time. At the end of the tax year, we complete your final declaration — summarising your total income, claiming allowances and reliefs, and calculating your tax liability.
Ready to Prepare for MTD for ITSA?
Don’t wait until the deadline. Contact us today to start preparing for Making Tax Digital for Income Tax. We’ll guide you through every step of the process and ensure you are fully compliant ahead of the HMRC deadlines.
