Making Tax Digital

Preparing for MTD for ITSA

Making Tax Digital for Income Tax Self Assessment is due to start in 2026 and preparing in advance can ensure you hit the ground running so as to minimse costs and disruption.

What is Making Tax Digital for Income Tax Self Assessment?

Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) is the new legislation change by HM Revenue and Customs (HMRC) requiring sole traders and landlords to record and file their self assessment return online. HMRC and the Treasury are introducing MTD with the aim of reducing the tax gap in the UK and have already launched MTD for VAT returns as the first phase of MTD targeted at small businesses.

Preparing for MTD is crucial so as to remain compliant and minimise the disruption to your business. Sherwin Currid looks after many sole traders and landlords and ensures that all of our clients are prepared for changes to legislation as well as helping with digital record keeping and submissions. If you have property income or operate as as a sole trader then get in touch with us to discuss how we can help you prepare for MTD as well as look after your other compliance.

What is the MTD for Income Tax timeline?

MTD for ITSA is being introduced in a phased approach beginning on the 6th April 2026 where those eligible with gross income revenues over £50,000 will have to begin providing quarterly updates and filing Self Assessment Tax Returns through MTD compliant software. In 2027 the income threshold will be decreased to £30,000 and even more earners will have to file through HMRC.

There are currently no plans to include individuals with earnings under £30,000 but the government are keeping this under review and may change legislation in the future to include these people. You may still voluntarily register if you do not cross the thresholds.

Who will MTD for ITSA affect?

MTD is targeted at individuals earning income through operating as a sole trader and landlords. From 2026 if you have income over £50,000 in a tax year from either of these income streams you will have to comply with the regulations with those earning over £30,000 obliged to join MTD the following year.

If you earn income through PAYE employment, limited company dividends, investments, savings and pensions only then MTD will not apply to you. However, if you earn additional income from either property rental or sole trade business income and your total earnings exceed the threshold then you will meet the eligibility requirements for MTD

Accountant Explaining VAT

Preparing for MTD for ITSA

To prepare for MTD for ITSA you should implement compliant software and seek the help of an accountant who will be able to assist you with completing and filing the necessary returns. Your Self Assessment Tax Return will be filed through MTD compliant software including the calculations of your income tax and National Insurance contributions.

By utilising professional advice you can not only ensure you are compliant with the new regulations but can also potentially save money on your tax bill by ensuing you are operating as efficiently as possible.

How can Sherwin Currid help with MTD for ITSA?

Here at Sherwin Currid we stay abreast of all developments in tax and legislation to provide our clients with the best advice and excellent service. We are prepared for MTD and have relationships with various software providers to ensure that you benefit from the best MTD software.

All of our clients are appointed their own dedicated accountant who will be on hand to offer unlimited advice and assistance with all aspects of your accounting and tax, including MTD. We look after sole traders and individuals with rental income either as their main stream of income or an additional stream. Our property tax experts will be able to guide you through compliance with MTD as well as advising you on the most tax efficient way to rent out your properties.

Our provisions for sole traders cover a wide range of services and will help you spend less time worrying about tracking income and expenditure and more time focusing on your business. We also offer company formation services and can advise you if operating through a limited company will be beneficial for you.

Get in touch with us today for a free consultation to discuss how we can help you, as a sole trader or landlord, prepare for MTD.

Cloud accounting software

Cloud accounting software plays a pivotal role in complying with MTD’s digital requirements. It allows for seamless business record keeping, ensuring accurate data and easy access for quarterly updates and submissions. By moving away from manual spreadsheet entries to cloud accounting software packages you can save time and easily share your electronic records with your accountant.

By finding a suitable, compatible software you can efficiently manage your income tax self-assessment obligations. Choosing the right software is crucial for a smooth transition to the new digital tax system. At Sherwin Currid we offer expert help with choosing MTD compliant cloud accounting solutions.

How to choose the right MTD software

With so many providers it can be challenging to select one that work best for you. Our accountants at Sherwin Currid are experts with a wide range of software all suited to the needs of each of our clients. Some of the providers that are most popular for our clients are:




Collaborative work with the support of expert accountants

Frequently Asked Questions 

What are the key requirements for taxpayers to prepare for MTD for ITSA?

The most important preparation for MTD for ITSA is the adoption of cloud accounting technology. At Sherwin Currid we can help select the right software for you and can help you get to grips with the software.

What software solutions are available to help with MTD for ITSA compliance?

Software like Xero and FreeAgent are preparing for MTD for ITSA and offer features tailored to meet MTD requirements. HMRC also offer guidance on software that is compliant with MTD.

What are the key deadlines for complying with MTD for ITSA?

If you are earning over £50,000 a year with some income coming from either a sole trade business or property rental. The 6th April 2027 is the deadline if you earn over £30,000 a year with some income from those sources. Once registered for MTD for ITSA the quarterly submission deadlines are:
Quarter 1 – 6th April to 5th July – Deadline of 5th August
Quarter 2 – 6th July to 5th October – Deadline of 5th November
Quarter 3 – 6th October to 5th January – Deadline of 5th February
Quarter 4 – 6th January to 5th April – Deadline of 5th May
End of Period Statement (EOPS) – 6th April to 5th April – Deadline of 31st January

How can an accountant help with MTD?

An accountant can help with MTD by ensuring compliance, offering guidance on digital record-keeping, and submitting accurate tax returns on time. We can provide you with advice on how to best structure your income to minimise your tax bill as well as ensuring you meet filing deadlines. For further information on how Sherwin Currid can help you please get in touch.

Sherwin Currid Directors

Our founding directors, Martyn Currid and Max Sherwin, set up Sherwin Currid to help freelancers and small businesses with accountancy. Since then we have grown to look after a wide range of clients while keeping our personal, professional service.

Our Client Testimonials

Some of our clients have been kind enough to leave us reviews of our accountancy services. Don’t just take our word for it, read some testimonials to see how we help people with their business and personal tax.

Looking for a wide range of accounting support?

If you are interested in switching your accountancy to us then get in touch today.
We will organise a free consultation, where one of our specialists will talk you through your options.