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.