Making Tax Digital for Income Tax: What It Means for You

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As an accountancy practice, we are committed to guiding you through the changes brought by HMRC's Making Tax Digital for Income Tax (MTD ITSA). Whether you’re a sole trader or landlord, we ensure you remain compliant, efficient, and focused on your business.

Making Tax Digital for Income Tax is a government initiative transforming how individuals and businesses record, report, and submit their income tax. From 6 April 2026, many sole traders and landlords with annual qualifying income above £50,000 will be required to keep digital records and file quarterly updates and an annual return using compatible software.

 You must use MTD for Income Tax if:

• You are registered for Self Assessment.
• You receive income from self-employment or property (or both).
• Your total annual qualifying income from these sources exceeds £50,000.

Step 1: Assess Your Qualifying Income

We can help you calculate whether your combined self-employment and property income exceeds the £50,000 threshold, ensuring you know if and when you must comply.

Step 2: Select Compatible Software

We’ll recommend digital accounting solutions that are HMRC-recognised for MTD ITSA and tailored to your needs. 

Step 3: Digital Record-Keeping

We guide you on setting up digital records for your income and expenses. This process is more secure, accurate, and accessible than traditional methods.

Step 4: Quarterly Updates

Instead of a single annual tax return, you’ll send quarterly updates to HMRC via your chosen software. We ensure these are completed and submitted on time to help avoid penalties.

Step 5: Annual Finalisation

Once the year ends, we reconcile your accounts, make any necessary adjustments, and submit the final declaration—so your tax position is accurate and up to date.

 Our practice offers:

• Assessment of your MTD obligations
• All-inclusive setup and software support
• Digital record-keeping and quarterly update management
• End-of-year tax reconciliation
• Regular bookkeeping
• Ongoing guidance throughout your digital tax journey

Contact us to discuss your current position and how we can support your transition to Making Tax Digital for Income Tax. We provide an end-to-end solution so you can focus on growing your business, confident that your tax obligations are in safe hands.

We guide your business into the digital future—secure, simple, and stress-free.

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