MTD for ITSA

Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) is a UK government initiative that will fundamentally change how self-employed individuals and landlords report their income to HM Revenue & Customs (HMRC).
Instead of a single annual Self Assessment tax return, those affected will be required to keep digital records and submit regular, more frequent updates to HMRC using compatible software.
Key Components of MTD for ITSA
  • Digital Record Keeping: You must maintain a digital record of your business income and expenses. This can be done using MTD-compatible software or a combination of spreadsheets and "bridging software" that links to HMRC's system.
  • Quarterly Updates: Instead of one yearly return, you will have to send a summary of your business income and expenses to HMRC every three months (quarterly). These are not full tax returns but rather summary of your financial activity to date.
  • End-of-Year Finalisation: After the end of the tax year, you will need to submit a final declaration. This is similar to the current Self Assessment process, where you make any necessary accounting or tax adjustments, add other sources of income (like PAYE or pensions), and confirm the information is correct.
Who is Affected and When?
MTD for ITSA is being rolled out by HMRC in phases, based on an individual's total qualifying income (gross income before expenses) from self-employment and property.
  • From April 2026: If your combined annual income from these sources is over £50,000, you will be required to follow the MTD rules.
  • From April 2027: The requirement extends to those with a combined annual income over £30,000.
  • From April 2028: The requirement will extend to those with a combined annual income over £20,000.

Our MTD for ITSA solution

Launching in April 2026, our MTD for ITSA bridging solution is a comprehensive platform designed to streamline your tax compliance. Seamlessly integrated into our cloud solution, it simplifies the preparation, calculation, and secure online submissions to HMRC, ensuring both accuracy and efficiency.
  • Excel Data Import: Our solution imports data from Excel to automatically capture and categorize your income and expenditure.
  • Real-time Calculations: As you record your financial activity, the platform calculates your tax position in real-time. This provides you with an up-to-date view of your tax liability, helping you to plan and manage your finances more effectively. These are not full tax returns but rather a summary of your financial activity so far.
  • Digital Submissions to HMRC: Our solution is fully compliant with HMRC's Making Tax Digital (MTD) requirements. It allows for the seamless online submission of quarterly updates and the Final Declaration, removing the need for paper-based returns and ensuring you meet all deadlines.
  • Security and Reliability: We prioritize the security of your data. The platform uses robust encryption and security protocols to protect your financial information and ensures that all communications with HMRC are secure and reliable.
All prices are for a 12 month licence and include VAT
Licence
Price
1 client
£35
2 clients
£65
Up to 5 clients
£75
Up to 10 clients
£90
Up to 25 clients
£165
Up to 100 clients
£230
Unlimited clients
£285