Making Tax Digital - Income Tax Self Assessment (MTD - ITSA)

Making Tax Digital for ITSA: What Sole Traders and Small Businesses Need to Know

The world of taxes is changing, and Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) is a big step towards modernizing the process. If you're a sole trader or small business owner, these changes could impact how you manage your finances. But don’t worry—at Books & Business, we’re here to make the transition smooth and stress-free!

What Is MTD for ITSA?

MTD for ITSA is part of the government's initiative to simplify tax reporting. From April 2026, those who receive income from self-employment and/or property where, gross income from these sources combined is above a threshold of £50,000 will need to submit their tax information digitally. If your income is between £30,000 and £50,000, these changes come into effect in April 2027.

Why MTD for ITSA Matters

• It reduces errors by keeping accurate digital records.
• Submitting quarterly updates keeps you on top of your finances.
• It simplifies the tax process, helping you avoid surprises at year-end.

How to Prepare 

To comply with MTD for ITSA, you’ll need to:

• Use compatible software like QuickBooks to maintain digital records and submit quarterly updates.
• Understand the requirements for submitting your information accurately.
• Ensure your bookkeeping is up to date and organized.

How We Can Help 

At Books & Business, we offer:

• QuickBooks setup and training to get you ready for MTD for ITSA.
• Ongoing support with quarterly updates and financial reporting.
• Personalised advice tailored to your business needs.

At Books & Business, we’re more than just bookkeepers — we’re your financial partners.

Get in touch today, and let’s take the first step together towards seamless MTD compliance!