MTD ITSA
What Is Making Tax Digital (MTD) in HMRC – And When Does It Start?
A Calm, Clear Guide to Making Tax Digital for Income Tax (MTD for ITSA)
Making Tax Digital (MTD) is HMRC’s initiative to modernise the UK tax system by replacing traditional paper tax returns with a fully digital, real-time reporting process.
For self-employed individuals and landlords, this means:
✅ Keeping digital records of income and expenses
✅ Submitting quarterly updates (mid-4, every 3 months)
✅ Filing an End of Period Statement and a Final Declaration at the end of the year
You're still paying tax once a year—but you'll report it more regularly and accurately, with fewer last-minute surprises.
When Does MTD for Self Assessment Start?
Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) will be introduced in phases, starting from 6 April 2026. Your requirement to comply depends on your qualifying income, which HMRC defines as your total gross income from self-employment and/or property rental before expenses.
Your MTD start date is based on the income reported on your 2024/25 tax return.
Here's the breakdown:
📆 From April 2026
If your qualifying income from the 2024/25 tax return is over £50,000, you must follow MTD rules.
📆 From April 2027
If your qualifying income from the 2024/25 tax return is between £30,000 and £50,000, you must comply.
🔕 Under £30,000
You won’t be required to join MTD yet. HMRC is reviewing whether and how MTD might apply to this group in the future. However, you can opt in voluntarily at any time for better visibility and digital reporting.
💡 Tip: To determine if you're affected, review your total self-employment and/or property income before expenses for the 2024/25 tax year. If the combined total is £30,000 or more, it's time to start preparing.
Get Ready for MTD
You don’t need to change everything overnight. Preparing for MTD can be simple and stress-free with the right guidance.
Here’s how to start:
Check your qualifying income
Review your gross income for the 2024/25 tax year to determine your MTD start date.
Choose the right software
We recommend Xero or QuickBooks Online—both HMRC-approved, cloud-based, and tailored to modern small businesses.
Start recording your income and expenses digitally
This helps you get accustomed to the software before your deadline and provides better visibility over your finances now.
Submit quarterly (mid-4) updates
With digital records in place, you'll report to HMRC four times per year using your chosen software.
Book a setup or support session with us
We can guide you through your MTD readiness, set up your software, and ensure you're submitting correctly from day one.
Tools That Make MTD Simple
We support:
Xero – Ideal for wellness, creative, and purpose-led service businesses
QuickBooks Online – Robust, user-friendly, and customizable for many business types.
Whether you prefer to manage it yourself with support or want it completely handled, we offer a calm path that suits your needs.
How Serenity Accounting Services Can Help
You don’t have to navigate MTD alone. At Serenity Accounting Services, we specialise in making tax and bookkeeping feel manageable, not overwhelming. Whether you're brand new to digital systems or already using software but unsure what’s next, we’re here to guide you calmly through every step.
Here’s what our MTD support includes:
✔️ MTD Readiness Reviews
We assess your current setup, bookkeeping habits, and income thresholds to identify exactly when MTD applies to you—and what needs to change to stay compliant. You’ll get a personalised checklist and action plan, so you can move forward with clarity.
✔️ Software Setup & Training (Xero or QuickBooks)
We help you choose between Xero and QuickBooks Online based on your business needs, then set up your account with the right structure. You’ll receive a guided walkthrough to help you confidently manage day-to-day tasks like invoicing, expenses, and reporting.
✔️ Digital Bookkeeping (DIY or Done-for-You)
Whether you want to keep your bookkeeping in-house or would prefer to hand it over, we offer flexible options:
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DIY with expert oversight (we’ll review your records each quarter)
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Done-for-You bookkeeping, where we manage everything so you can focus on running your business
✔️ Quarterly Submission Support
We handle your quarterly MTD updates to HMRC, ensuring everything is submitted accurately and on time. You’ll never have to worry about missing a deadline or misunderstanding what’s required.
✔️ Year-End EOPS & Final Declarations
When the tax year ends, we help you complete the End of Period Statement (EOPS) and Final Declaration, making sure all quarterly data is aligned and your reporting is correct. This replaces your old-style Self Assessment return.
✔️ Ongoing Compliance Monitoring
We stay on top of HMRC updates, software changes, and your quarterly obligations—so you don’t have to. We’ll remind you of deadlines, track submissions, and be available year-round for peace of mind and prompt support.
Ready for MTD?
Let's take the stress out of getting MTD-ready and set you up for calm, confident compliance.
Book a Free Clarity Call or Request Support
Please fill out the form below, and we'll be in touch.
Worthing, West Sussex, England, United Kingdom
info@serenityaccountingservices.co.uk
07572986858