Making Tax Digital for ITSA

Support with MTD for ITSA, so you don’t have to figure it out alone.

Making Tax Digital
for ITSA

If you’re a sole trader or landlord, Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) might already be on your radar.
It’s HMRC’s new system for managing income tax. The big change? Instead of submitting one tax return a year, you’ll need to keep digital records and send quarterly updates using MTD-compliant software like Xero.

It’s a shift, yes. But it doesn’t have to be stressful or overwhelming. With the right support, it can be straightforward. Even helpful.

Will MTD for ITSA apply to you?

If you’re a sole trader or property landlord, here’s when the rules begin, based on your gross income (your total income before expenses). If your income is already over £50,000, now is the time to get ahead. Preparing early means fewer last-minute decisions and more time to get comfortable with the new system.

April 2026

Income over £50,000

April 2027

Income between £30,000 and £50,000

April 2028

Income between £20,000 and £30,000

What does Making Tax Digital actually involve?

Once MTD for ITSA applies to you, HMRC will expect you to:

Keep digital records of all income and expenses
Use MTD-compliant software (like Xero)
Send quarterly updates summarising your business income and expenses
Submit a Final Declaration at year-end, confirming your income and tax position (this replaces the usual Self Assessment return)

Yes, it’s more frequent reporting. But with our help, we’ll make sure you’re set up properly so it feels manageable and runs smoothly.

Why prepare now, even if your deadline’s years away?

You could wait. But in our experience, business owners who delay often feel rushed and underprepared when the time comes.

Starting early brings peace of mind. It gives you:

Time to get everything working properly
Space to understand how it all fits together
Fewer last-minute issues (and lower risk of missed deadlines or penalties)
More breathing room to make business decisions, based on up to date numbers

In short, it’s one less thing to worry about. And your future self will thank you.

What do your digital records need to include?

To stay compliant with MTD ITSA, your bookkeeping software needs to track:

Self-employment and/or rental income
Business expenses, organised by category (for example, travel, equipment, subscriptions)
Adjustments and tax allowances
A separate set of records for each income stream, if you have more than one

If you’re already using Xero, you may only need a few adjustments. If you’re not using Xero yet, no problem. We’ll help you get set up confidently.

What happens if you miss a deadline?

HMRC uses a points-based penalty system for MTD ITSA. Each missed quarterly update adds a point. If you reach the threshold, it turns into a fine. The best way to avoid that? Keep your records up to date and submit on time. We’ll help you stay on track.

How we support sole traders and landlords with MTD for ITSA

We work with sole traders, freelancers and landlords across the UK, helping them navigate the MTD changes with calm and clarity.

Here’s how we can support you:

Set up or review your Xero software to ensure it’s MTD ITSA-compliant
Manage your quarterly submissions to HMRC
Keep records tidy for your accountant to complete the Final Declaration
Offer ongoing bookkeeping support so nothing falls through the cracks
Handle catch-up work if things have slipped behind

You don’t have to do this alone. We’ll guide you through it, take the pressure off, and make sure you’re always clear on what’s needed and when. And when questions come up, you’ll have us in your corner.

Ready to get ahead of MTD for ITSA?

If your income is over £50,000 and you haven’t started preparing, now’s the time. Even if your deadline is a little further away, setting things up early makes everything feel simpler. It also gives you clarity you didn’t know you were missing. Let’s talk through where you’re at and how we can help.