MTD for Income Tax
What is MTD for Income Tax?
Making Tax Digital (MTD) for Income Tax Self Assessment (ITSA) is a UK government initiative designed to modernise the tax system. From April 2026, self-employed individuals and landlords with gross qualifying income over £50,000 must keep digital records and submit tax returns through an MTD-compliant software. The threshold will reduce to £30,000 from April 2027 and £20,000 from April 2028 .
Key Changes Under MTD for ITSA
- Quarterly Updates: Instead of a single Self Assessment return, you must submit updates every three months.
- End-of-Period Statement (EOPS): This confirms your total annual income and expenses.
- Final Declaration: A final submission to HMRC replacing the traditional tax return.
- Digital Record-Keeping: Paper records and manual submissions will no longer be allowed. You should use HMRC-approved accounting software (e.g., Xero, QuickBooks, or FreeAgent).
How to Prepare for MTD ITSA
- Check Your Eligibility – Are you a sole trader or landlord earning over £50,000.
- Choose MTD-Compliant Software – We can help you find the best option.
- Start Keeping Digital Records – Get used to the new system before the deadline.
Get MTD-Ready with Nunn Hayward
We take the stress out of tax compliance! Our expert team will:
- Register you for MTD and ensure compliance.
- Manage your quarterly tax submissions.
- Provide ongoing support and training.
Get in Touch
Contact us today on 01753 888 211 or email info@nhllp.com for expert MTD assistance.