Making Tax Digital for Income Tax

Making Tax Digital for Income Tax (MTD for ITSA) is the biggest change to Self Assessment in years — and if it applies to you, the days of one annual tax return are over. We’ll get you set up, keep you compliant, and take the quarterly admin off your plate.

What’s included

• Digital record-keeping set up in MTD-compatible software (Xero, QuickBooks, or Dext)
• Preparation and submission of your quarterly updates to HMRC
• Your End of Period Statement and final declaration at year end
• Guidance on whether — and when — MTD applies to you
• Ongoing support as the thresholds change over the coming years

Who it’s for

• From April 2026: sole traders and landlords with gross business or property income over £50,000
• From April 2027: the threshold drops to £30,000, bringing in many more sole traders and landlords
• From April 2028: the threshold drops again to £20,000

If you’re a limited company, this doesn’t apply to you — MTD for ITSA is for income tax, not corporation tax, so nothing changes for Ltd companies at this stage.

Why it matters

Instead of one annual Self Assessment return, anyone within scope now needs to keep digital records and send HMRC a quarterly update of income and expenses, followed by a year-end statement to finalise the figures. The first quarterly deadline for the initial group is 7 August 2026, covering April to June — and from here on, it’s a recurring, HMRC-facing deadline four times a year, not once.

Miss a quarterly update and, eventually, you’re looking at HMRC’s new points-based penalty system — a bit like penalty points on a driving licence, they build up and eventually trigger a fine. HMRC has said it will take a lighter touch in year one, but that won’t last forever.

How we work with you

We’ll tell you plainly whether MTD applies to you yet, and when it will if it doesn’t now. If you’re in scope, we’ll get your record-keeping set up properly in software you’re comfortable with, then handle the quarterly submissions so they’re just another thing that quietly gets done — not a recurring source of stress.

Not sure if MTD applies to you yet? Get in touch and we’ll tell you straight — no jargon, no scaremongering.