Making Tax Digital for Income Tax (MTD ITSA): Get Ready with Accusolve Accountants
Making Tax Digital
Published: 10/29/2025
Over 1.7 million sole traders and landlords are scheduled to move onto MTD ITSA across 2026–27—and with ~97% of Self-Assessment returns already filed online, quarterly digital reporting is the next step.
If this all sounds like a lot, you’re not alone. Accusolve makes it simple with fixed-fee onboarding, quarterly compliance, and year-end wrap-ups tailored to your business.
Who’s affected—and when? If your qualifying income is over £50,000, you’re mandated from 6 April 2026. Over £30,000 is mandated from 6 April 2027. Government has indicated an intention to extend to £20,000+ at a later date (provisionally April 2028), subject to legislation and timetabling.
Once in scope, you’ll keep digital records, submit quarterly updates, file an End of Period Statement (EOPS), and make a Final Declaration.
Why choose Accusolve for MTD ITSA?
We specialise in ambitious small businesses and non-UK founders who need clear guidance, compliant systems, and reliable delivery. We’re AAT AML supervised and provide complete support—without the jargon.
- Done-for-you digital setup — We set up MTD-compatible software (Xero/QuickBooks), connect bank feeds, and map categories.
- Quarterly submissions on time — We review data, post adjustments, and submit your updates to HMRC.
- Year-end EOPS + Final Declaration — Full-year reconciliation, reliefs and allowances review, and filing.
- Landlord-friendly bookkeeping — Mortgage interest tracking, joint ownership splits, evidence trails.
- Side-hustle ready — Marketplace and platform feeds for Amazon, eBay, Etsy, Shopify and content platforms.
- Personal advice — Tax planning, payments on account estimates, and cash-flow support.
Proof you’ll benefit from doing this early: each year roughly 1.1 million people miss the Self Assessment deadline. Our quarterly service keeps you ahead of dates, not chasing them.
What’s changing—and how we keep you compliant
1) Quarterly digital reporting replaces “once-a-year panic”
Send four quarterly updates per tax year from software, plus an EOPS and a Final Declaration. Our quarterly service keeps records tidy year-round.
2) Software-only digital record-keeping (with proper digital links)
You’ll need MTD-compatible software to keep digital records and submit updates. Spreadsheets alone are unlikely to meet requirements unless used with compatible bridging and digital links. We can set up the right tools, train you, or operate everything for you.
3) Who’s in first?
Mandation is by income bands—£50k first (from April 2026), then £30k (from April 2027). General partnerships are not yet mandated under these phases; HMRC intends to include them later. If you fluctuate near a threshold, we’ll monitor and advise when to prepare or opt in early.
4) Quarterly periods & deadlines (precise)
- Standard periods: 6 Apr–5 Jul, 6 Jul–5 Oct, 6 Oct–5 Jan, 6 Jan–5 Apr.
- Optional calendar quarters: Apr–Jun, Jul–Sep, Oct–Dec, Jan–Mar.
- Updates are generally due by the 7th of the second month after the period ends.
Packages designed for landlords & sole traders
MTD Kickstart (one-off)
- Software setup (Xero/QuickBooks)
- Bank feeds + tailored chart of accounts
- App stack recommendations (receipt capture, mileage, ecommerce)
- Training session or SOP guide
Quarterly Compliance (retainer)
- Quarterly review, adjustments & MTD update submission
- VAT check (if registered) & CIS considerations (if applicable)
- Proactive reminders for payments on account & deadlines
- Ongoing support channel
Year-End Wrap
- EOPS and Final Declaration
- Reliefs optimisation & allowances review
- HMRC correspondence handled
Landlords: avoid common MTD pitfalls
There are ~2.86 million individuals reporting UK property income—and private renting represents ~19% of households—so landlord compliance is firmly in view.
- Separate personal and property transactions with a clean audit trail using structured cloud bookkeeping.
- Track mortgage interest & finance costs correctly.
- Apply correct joint ownership allocations with supporting records.
- Consolidate letting agents, platforms and direct rents into one ledger.
Side-hustlers & creators: keep HMRC happy
The UK has around 4.2 million self-employed people, many with platform or marketplace income. MTD increases reporting cadence and visibility. We set up automated imports, platform reconciliations, and clear categories so quarterly updates are accurate and on time, and your Self Assessment tax returns stay fully compliant.
FAQs
Sole traders and landlords with total qualifying income over £50,000 join from 6 April 2026; £30,000+ join from 6 April 2027. Government has indicated an intention to include £20,000+ at a later date, subject to legislation.
Your gross (before expenses) combined income from self-employment and UK property that you report on Self Assessment. Foreign income typically doesn’t count unless declared on the UK return.
Maintain digital records, send quarterly updates for each trade/property, then file an End of Period Statement (EOPS) and a Final Declaration.
Standard quarters: 6 Apr–5 Jul, 6 Jul–5 Oct, 6 Oct–5 Jan, 6 Jan–5 Apr; or elect calendar quarters (Apr–Jun, Jul–Sep, Oct–Dec, Jan–Mar). Updates are generally due by the 7th of the second month after quarter-end.
Yes—MTD-compatible software. Spreadsheets alone are unlikely to meet requirements unless used with compatible bridging and digital links.
Join the 97% already filing online—upgrade to compliant quarterly reporting with Accusolve.
Call 0203 092 6909 or email mail@accusolveaccountants.com
Compliance, disclosures & helpful notes
- Exemptions: If it’s not reasonable or practical for you to use digital tools (for example due to disability, age, remoteness or religious grounds), you may apply to HMRC for an MTD ITSA exemption.
- Partnerships: General partnerships are not yet mandated under the 2026/2027 phases; HMRC intends to extend MTD ITSA at a later date.
- Cash basis: From 2024/25, the cash basis is the default for unincorporated businesses; we’ll advise whether cash or accruals is better in your circumstances.
- Software: You’ll need MTD-compatible software (spreadsheets alone generally won’t qualify unless used with bridging and digital links).
- Disclaimer: This page provides general information only and is not tax or legal advice. Advice is provided subject to our engagement letter and based on information you supply.
- Regulatory statement: Accusolve Accountants are AAT AML supervised. We’re not chartered accountants.
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