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.
• Personalized advice tailored to your business needs.

Get Started Today Don’t let MTD for ITSA catch you off guard. Contact us today to learn how we can support you with bookkeeping, QuickBooks subscriptions, and training. Let’s make tax simple!