Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) is the next step in the UK government’s initiative to modernise the tax system. From April 2026, self-employed individuals and landlords earning over £50,000 annually must keep digital records and submit tax information quarterly via MTD-compatible software. From April 2027, those earning above £30,000 will also be required to comply.
At Every Penny Accounts, we specialise in helping sole traders and landlords navigate the transition to MTD for income tax with ease. Whether you’re new to digital record-keeping or need assistance choosing the right software, our experienced team ensures you meet compliance requirements effortlessly. Get in touch now for more information.
The Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) regulations are being introduced in phases, impacting different groups based on their earnings. The goal is to improve accuracy, reduce errors, and make tax reporting more efficient by requiring taxpayers to keep digital records and submit tax returns through MTD-compatible software, which will apply to:
If your personal income is below £30,000, you may not need to comply immediately, but transitioning to digital tax reporting early can help you stay ahead of future changes. If you’re looking for reliable accountants to help you with your MTD for ITSA, choose Every Penny Accounts. Reach out now to find out more.
Under MTD for ITSA, taxpayers must keep digital records and follow a structured tax reporting process, which includes:
Taxpayers must submit quarterly income and expense reports to HMRC using MTD-compatible software. These updates must be filed by the end of the following month after each quarter:
Quarter 1 (Apr – Jun): Due by 7th August
Quarter 2 (Jul – Sep): Due by 7th November
Quarter 3 (Oct – Dec): Due by 7th February
Quarter 4 (Jan – Mar): Due by 7th May
These updates provide HMRC with an estimate of your tax liability throughout the year.
At the end of the tax year, an EOPS must be submitted to finalise gross income and claim any accounting and tax adjustments, allowances, or reliefs. This replaces the previous process of making manual adjustments at year-end.
A Final Declaration (previously known as the Self-Assessment tax return) must be submitted to confirm all income details and tax calculations. This final step ensures your income tax affect is accurately determined.
Transitioning to MTD for income tax may seem overwhelming, but with our expert service, we can manage the process effortlessly. Here’s how we help:
We assist with selecting, installing, and using HMRC-approved accounting software to simplify your tax submissions. Our team provides practical training to ensure you are confident using digital systems.
To remain compliant, you must keep real-time digital records of income and expenses. We help you:
We handle your quarterly updates, EOPS filings, and Final Declaration, ensuring all data is accurately compiled and submitted on time.
Many self-employed individuals and landlords struggle to adapt to digital tax reporting. Moving from traditional bookkeeping to real-time digital record-keeping can feel daunting. At Every Penny Accounts, we offer personalised support to make the transition smooth and stress-free in Droylsden.
One of the biggest hurdles is learning how to use MTD-compatible software. If you’re unfamiliar with digital accounting tools, the change can be overwhelming. That’s why we provide step-by-step training, helping you navigate the software, record transactions accurately, and submit tax updates confidently. We also offer ongoing support, so you never feel lost in the process.
For those managing multiple income streams, keeping track of trading and property income separately can be challenging. Our bookkeeping services ensure all earnings are recorded correctly, preventing confusion during quarterly submissions and the Final Declaration.
Another common issue is staying on top of submission deadlines. Missing a deadline can lead to penalties, especially for VAT-registered businesses managing multiple compliance obligations. We remove this burden by sending reminders and handling submissions on your behalf, keeping you fully compliant.
Finally, understanding income tax rules around allowances, deductions, and adjustments can be complex. Our tax specialists at Every Penny Accounts ensure that your EOPS and Final Declaration are completed correctly, helping you maximise tax efficiency while staying compliant with HMRC regulations.
As MTD for ITSA continues to expand, staying compliant requires keeping up with evolving legislation. With changing income tax rules, new reporting obligations, and software updates, sole traders and landlords need reliable support to navigate these developments.
At Every Penny Accounts, we provide regular updates on MTD changes, ensuring you are always aware of upcoming thresholds and submission deadlines. We also conduct annual compliance reviews to confirm that your digital records meet HMRC’s latest standards, preventing compliance issues before they arise. As new legislation is introduced, our experts offer tailored guidance, helping you adapt to changes smoothly and keep your tax affairs in order.
Making Tax Digital for ITSA is changing how self-employed individuals and landlords manage tax reporting. Compliance is essential to avoid penalties and maintain accurate financial records. At Every Penny Accounts, we offer expert MTD services to ensure a seamless transition, making sure your tax obligations are met without hassle.
If you need assistance with MTD compliance, digital record-keeping, or tax filing, contact Every Penny Accounts today. Our team is ready to help you simplify digital tax reporting and ensure you remain fully compliant. Additionally, check out our blog now for everything you need to know about MTD for ITSA.
