🧾 What Is MTD ITSA?

MTD ITSA is the next phase of Making Tax Digital. It replaces the traditional annual Self Assessment tax return (SA100) with more frequent reporting, requiring affected taxpayers to:

1. Keep digital records using HMRC-compliant software
2. Submit quarterly income updates to HMRC
3. File an End of Period Statement (EOPS) confirming annual totals
4. Submit a Final Declaration confirming total income and claiming reliefs

Instead of filing once a year, you’ll now submit five reports annually.

👥 Who Does MTD ITSA Apply To?

✅ Landlords

If your gross property income exceeds £50,000 per year (before expenses), you’ll be required to join MTD ITSA from April 2026.

This includes:

• Individuals with UK residential or commercial rental income
• Joint property owners (each person must report their share separately)
• Holiday let landlords (FHL and non-FHL)

✅ Self-Employed Individuals

If you're a sole trader or freelancer with business income over £50,000, you’ll also fall under MTD ITSA.

Includes:

• Tradespeople
• Consultants
• Coaches
• Small businesses run in your personal name

🕒 From April 2027, those earning £30,000–£50,000 will be brought into the regime.

❌ Who Is Currently Exempt?

• Individuals earning under £30,000 (for now)
• Those with only PAYE income
• Partnerships and limited companies (covered under separate MTD rollouts)
• Individuals claiming digitally excluded exemptions (e.g. due to age, disability, or location)

🧠 What You’ll Need to Comply

• MTD-compliant accounting software (e.g. Xero, FreeAgent, QuickBooks)
• A digital record of income and expenses
• A clear separation of property vs. self-employed income
• A system for submitting quarterly updates and annual summaries

Note: You cannot use spreadsheets or paper-based systems alone — unless integrated with approved bridging software.

📅 Your New MTD ITSA Reporting Timeline (from April 2026)

Reporting Period Deadline to Submit 6 April – 5 July 5 August 6 July – 5 October 5 November 6 October – 5 January 5 February 6 January – 5 April 5 May EOPS + Final Declaration Following 31 January

🏘️ MTD ITSA for Landlords – What’s Different?

Landlords will now need to:

• Keep digital records of rental income and expenses (per property, ideally)
• Track and report joint ownership shares individually
• Report both UK and overseas property income streams (if applicable)
• Plan for earlier tax visibility and possible payment adjustments during the year

🔧 MTD ITSA for Sole Traders – What to Prepare

Self-employed individuals will need to:

• Record income and allowable business expenses in real-time
• Track different trades separately if applicable
• Submit four quarterly updates for business income (separate from property)
• Manage multiple MTD obligations if also VAT-registered

🤯 What Happens If You Don’t Comply?

• Late submission penalties under the new points-based system
• Interest on late tax payments
• Increased HMRC scrutiny on manual or incorrect entries
• Risk of disruption to cash flow if submissions are missed or delayed

✅ How Taxpertise Can Help You Prepare for MTD ITSA

At Taxpertise, we make the MTD transition smooth, stress-free, and efficient. We help:✔ Landlords manage digital record-keeping and quarterly reporting ✔ Self-employed clients track business income and stay compliant ✔ Clients select the best MTD-compatible software for their situation ✔ Provide full quarterly and year-end support for all MTD reports ✔ Offer training and ongoing support for those doing their own books📞 Book your MTD readiness review today — and let’s ensure you’re fully compliant and in control before the 2026 deadline.Would you like this turned into a downloadable PDF or added to your client onboarding