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Home of Tax Assessments and Compliance Services (T.A.C.S.)

Looking after your business - from registration to submission and beyond!

Making Tax Digital
for Income Tax & Self Assessment

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​Free transition to MTD
Accounting Software
Quarterly updates and End of Period
Dedicated Account Manager
​UK based accountant.

Let's talk about MTD for ITSA

What is MTD for ITSA?

Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) is a UK government initiative that transforms the way sole traders, landlords, and the self employed report income tax. Instead of filing one annual return, MTD for Income Tax requires individuals to keep digital records and send quarterly updates to HMRC through MTD-compatible software such as Xero, QuickBooks, or FreeAgent.

This move to tax digital reporting reduces errors, provides real-time tax insights, and helps taxpayers stay compliant. However, it also means sole traders, landlords, and the self employed must adapt quickly to digital tax systems.

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Who does MTD apply to?

MTD for ITSA applies to individuals who currently file Self Assessment tax returns and have income from:

  • Self-employment (sole traders) 

  • Property rental (landlords)

  • Mixed income – those with both self-employment and rental income.

Some taxpayers may qualify for exemptions, such as digital exclusion or other special cases.

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When will the MTD start?

The rollout of MTD for Income Tax will take place in stages:

  • 6th April 2026 – Sole traders and landlords earning over £50,000 must join.

  • 6th April 2027 – Those earning between £30,000 and £50,000 will be included.

  • 6th April 2028 – Those earning £20,000+ may be required to comply.

These deadlines are part of HMRC’s Making Tax Digital 2026 roadmap.

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What is the assessment period?

HMRC will assess qualifying income in the tax year before MTD applies:

  • £50,000+ in 2024/25 → start April 2026.

  • £30,000+ in 2025/26 → start April 2027.

  • £20,000+ in 2026/27 → start April 2028.

This applies to MTD for landlords HMRC assessments as well as self assessment MTD checks.

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What is changing?

If your income (before deducting expenses) is above the threshold, you must:

  • Keep digital income and expense records using MTD for ITSA HMRC-approved software.

  • Submit quarterly updates to HMRC MTD ITSA.

  • File an End of Period Statement (EOPS).

  • Complete the Final Declaration (replacing the Self Assessment return).

This marks a shift from traditional bookkeeping to income tax digital reporting—something many self employed taxpayers and landlords will find easier with expert support.

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What are the deadlines?

Quarterly submissions must be made within one month of the end of each period.

The EOPS and Final Declaration deadline is 31st January after the tax year ends.

Missing deadlines could lead to penalties, making it crucial to use MTD for ITSA-compliant systems like Xero ITSA, QuickBooks MTD ITSA, or FreeAgent MTD ITSA.

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How can we help?

We specialise in helping individuals transition smoothly to Making Tax Digital for Income Tax Self Assessment (ITSA). Our services include:

  • Free MTD transition support – from HMRC MTD registration to setup.

  • MTD-Compatible Software Solutions – we work with Xero MTD ITSA, QuickBooks MTD ITSA, FreeAgent, and more.

  • Quarterly Tax Management – we manage and submit your updates, so you never miss HMRC MTD deadlines.

  • Expert Guidance – we simplify complex MTD income tax rules into clear advice.

  • Affordable Services – tailored plans for self employed MTD, landlords MTD, and sole trader MTD.

  • Personalised Support – from MTD for rental income to self employed tax digital compliance.

Whether you’re a landlord, sole trader, or earning mixed income, we’ll help you stay compliant with HMRC Making Tax Digital for Income Tax.

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