Making Tax Digital for ITSA: What are the next steps?
Making Tax Digital for ITSA: What are the next steps?
The way self-employed individuals and landlords manage their tax is changing. With the introduction of Making Tax Digital for Income Tax Self Assessment (MTD ITSA), HMRC is modernising the tax system to make it more efficient, accurate, and streamlined. If you are a sole trader or landlord earning over £50,000, you will be required to comply with MTD ITSA from April 2026. But what does this mean for you, and why should you choose Heriot Hughes Chartered Accountants as your trusted advisor? Let’s break it down.
What is MTD ITSA?
MTD ITSA is part of HMRC’s wider digital transformation initiative. It requires affected taxpayers to:
- Maintain digital records of their income and expenses.
- Submit quarterly updates to HMRC via compatible software.
- File an End of Period Statement (EOPS) and a Final Declaration annually.
Gone are the days of manual record-keeping and last-minute tax return panic. Instead, MTD ITSA encourages a proactive approach to tax management.
How Can You Prepare for MTD ITSA?
If you are a sole trader or landlord, you need to:
- 1. Choose MTD-compliant software – Xero, QuickBooks, FreeAgent, and Dext are popular choices.
- 2. Keep digital records – No more shoeboxes full of receipts!
- 3. Submit quarterly updates – Ensuring real-time tax calculations and avoiding unexpected tax bills.
- 4. Work with an expert accountant – Having an experienced advisor makes all the difference.
How can we help?
At Heriot Hughes, we have fully embraced Making Tax Digital and have the expertise to guide you through the transition with ease. Here’s why we stand out:
- Proactive Approach: We don’t just help you meet compliance requirements; we help you make informed financial decisions throughout the year.
- Software Expertise: Our team is highly experienced in MTD-compliant software, including Xero and Dext, making bookkeeping effortless.
- Tailored Support: We work closely with our clients, offering personalised advice to optimise tax efficiency.
- Peace of Mind: By partnering with us, you can focus on running your business while we handle your tax obligations seamlessly.
Get Ready for MTD ITSA with Us
The clock is ticking, and early preparation is key to a smooth transition. Whether you need help choosing the right software, understanding your new obligations, or ensuring ongoing compliance, we’re here to help!
Contact us today to discuss how we can support you in making tax digital for ITSA and staying ahead of the game!
