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Making Tax Digital for Income Tax (MTD ITSA)

From April 2026, Making Tax Digital (MTD) rules will extend to Income Tax Self Assessment (ITSA). If you’re a sole trader or landlord earning over £50,000 a year, you’ll need to follow the new rules.


That means:

  • Keep digital records in HMRC-approved software.
  • Send quarterly updates to HMRC instead of one annual return.
  • Submit a final year-end statement.


For many business owners, this is a big change — and a lot more admin.

At Books & Business, we make MTD ITSA stress-free. We’ll handle your digital bookkeeping, submit all quarterly updates, and make sure you stay compliant without the headaches.


Who will be affected by MTD ITSA?

  • Sole traders earning more than £50,000 annually.
  • Landlords with rental income above £50,000.
  • From April 2027, those earning between £30,000 and £50,000 will also be included.

If you’re under these thresholds, you don’t need to worry (yet).


What changes under MTD ITSA?

Currently, most sole traders and landlords file one annual Self Assessment return. Under MTD ITSA, you’ll need to:

  • Keep your records digitally (spreadsheets alone won’t cut it).
  • Submit quarterly returns through HMRC-approved software.
  • File a final year-end declaration.

That’s five submissions each year — instead of just one.


Why It Matters Now

2026 might sound far away, but the changes are significant. Getting set up early means:

  • You’ll avoid a last-minute rush when MTD ITSA goes live.
  • You’ll have time to learn new software (or let us manage it for you).
  • Your bookkeeping will already be MTD-compliant.

Preparing early makes the transition smooth and stress-free.


How we help with MTD ITSA

We take the stress out of compliance by:

  • Setting you up on MTD-approved software such as QuickBooks, Xero
  • Handling all quarterly submissions and your year-end declaration.
  • Keeping your books digital, accurate, and HMRC-compliant.
  • Explaining changes in plain English, so you know what’s happening.
  • Offering monthly or quarterly check-ins so you’re never left guessing.


Be ready for April 2026

Don’t wait until the deadline hits. We can get your systems in place now so you’re fully prepared for MTD ITSA.


Important note: Our ability to file on time depends on clients providing information promptly. We’ll always send reminders and chase for paperwork, but late delivery may affect filing deadlines.

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