Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) for Sole Traders and Landlords

HMRC has published guidance on the Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) requirements for sole traders and landlords:

https://www.gov.uk/government/publications/extension-of-making-tax-digital-for-income-tax-self-assessment-to-businesses-and-landlords/extension-of-making-tax-digital-for-income-tax-self-assessment-to-businesses-and-landlords

MTD for ITSA will require businesses and landlords with qualifying income to maintain digital records and update HMRC each quarter via compatible software. Software such as Xero, Quickbooks and Sage are designed to be user friendly, increase productivity, provide an up to date picture of finances and may also provide additional functionality to integrate record keeping with other business processes. This can further reduce time spent on tax administration and help users to get taxes right first time.

In the guidance, HMRC stated that MTD for ITSA will be introduced in two phases:

•         from April 2026 for those with qualifying income over £50,000

•         from April 2027 for those with qualifying income over £30,000.

If you need help or advice with the forthcoming changes please do contact us. We are Xero, Quickbooks and Sage partners and can provide bookkeeping training to get you off to a flying start. 01306 886681 or info@ellisatkins.co.uk