Making Tax Digital for Income Tax Self-Assessment
- MTD for ITSA
Making Tax Digital (MTD) is being introduced for Income Tax Self-Assessment (ITSA) from 6 April 2026.
Self-employed businesses and landlords with annual business or property income above £50,000 will need to follow the rules for MTD for ITSA from 6 April 2026. For those with income over £30,000 the rules will apply from April 2027.
The broad outline of the rules is that digital records must be kept, and a quarterly statement filed (similar to a Vat return submission).
After the fourth quarter, an End Of Period Statement will need to be made to finalise each business income source.
A Final Declaration will also need to be made, to include other sources of taxable income such as savings and investment income (much akin to Annual Accounts preparation and Tax return filing).
One big difference is that if you have business and property income, there will be a requirement to make separate submissions for both, and if you are Vat registered that will mean three submissions a quarter.
We offer the following "in house" digital packages: Sage, Xero and Quickbooks.
We decided to limit our "in house" digital packages to ensure that our team have the requisite expertise to assist our clients, but still offer some choice.
This does not mean that we will not assist clients who are already on another digital package.
We have a dedicated team of staff to assist and support our clients with their digital records.
Unlike many other practices that outsource or sub-contract these services, either by trying to cut costs or because they do not have the expertise, all our work is undertaken by our own staff, so there will always be support when you need it.
Don't delay contact a member of our team today!
Partnerships
HMRC has not at this time provided any new information with regards to partnerships, other than than the fact that implementation has been delayed and it remains committed to introducing MTD for ITSA for Partnerships at a later date.
Originally HMRC had planned the MTD ITSA for general partnerships (not LLPs, not partnerships with a corporate partner, and not partnerships with more than 20 partners) from 6 April 2025 – one year later than for individuals.
The MTD ITSA obligations would apply to the partnership rather than individual partners.
Originally HMRC announced: In a new consultation HMRC has confirmed that Making Tax Digital for corporation tax (MTD for CT) will not be implemented until 2026 'at the earliest'.
There has been no additional information released by HMRC with regards to Limited Companies.
Self-employed businesses and landlords with annual business or property income above £50,000 will need to follow the rules for MTD for ITSA from 6 April 2026. For those with income over £30,000 the rules will apply from April 2027.
The broad outline of the rules is that digital records must be kept, and a quarterly statement filed (similar to a Vat return submission).
After the fourth quarter, an End Of Period Statement will need to be made to finalise each business income source.
A Final Declaration will also need to be made, to include other sources of taxable income such as savings and investment income (much akin to Annual Accounts preparation and Tax return filing).
One big difference is that if you have business and property income, there will be a requirement to make separate submissions for both, and if you are Vat registered that will mean three submissions a quarter.
We offer the following "in house" digital packages: Sage, Xero and Quickbooks.
We decided to limit our "in house" digital packages to ensure that our team have the requisite expertise to assist our clients, but still offer some choice.
This does not mean that we will not assist clients who are already on another digital package.
We have a dedicated team of staff to assist and support our clients with their digital records.
Unlike many other practices that outsource or sub-contract these services, either by trying to cut costs or because they do not have the expertise, all our work is undertaken by our own staff, so there will always be support when you need it.
Don't delay contact a member of our team today!
Partnerships
HMRC has not at this time provided any new information with regards to partnerships, other than than the fact that implementation has been delayed and it remains committed to introducing MTD for ITSA for Partnerships at a later date.
Originally HMRC had planned the MTD ITSA for general partnerships (not LLPs, not partnerships with a corporate partner, and not partnerships with more than 20 partners) from 6 April 2025 – one year later than for individuals.
The MTD ITSA obligations would apply to the partnership rather than individual partners.
Originally HMRC announced: In a new consultation HMRC has confirmed that Making Tax Digital for corporation tax (MTD for CT) will not be implemented until 2026 'at the earliest'.
There has been no additional information released by HMRC with regards to Limited Companies.
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