From 6 April 2026, HMRC will introduce Making Tax Digital for Income Tax Self Assessment (MTD ITSA) for individuals with annual qualifying income over £50,000.
Our records show that you fall within this threshold. This means you will be required to keep digital accounting records and submit quarterly income and expense updates to HMRC using approved software.
This guide explains what’s changing, what actions you need to take, how to prepare, and how we’ll support you throughout the process.
What MTD Means for You
Under MTD for Income Tax, you will need to:
Keep digital records of income and expenses using MTD-compatible software
Submit four quarterly updates to HMRC each tax year
Submit a Final Declaration after the tax year ends
This replaces the current single annual Self Assessment tax return, increasing submissions from one to five per year.
Your Quarterly Submission Deadlines
Most clients will follow HMRC’s standard tax-year quarters:
| Quarter | Period Covered | Deadline |
|---|---|---|
| Q1 | 6 April – 5 July | 7 August |
| Q2 | 6 July – 5 October | 7 November |
| Q3 | 6 October – 5 January | 7 February |
| Q4 | 6 January – 5 April | 7 May |
HMRC also allows reporting by calendar quarters (for example, 1 April – 30 June), with the same deadlines. Please let us know if you would prefer this option.
Information We Will Need From You Each Quarter
To prepare your quarterly submissions, we will need the following digitally:
Income records (sole trader, rental, or mixed sources)
Categorised expense records through your software
Bank statements for the relevant period
Details of any new asset purchases or disposals
Notes explaining any unusual or one-off transactions
Final Declaration – Annual Information
Some information is reported annually rather than quarterly, including:
Interest and dividend income
Employment income (P60s)
Pension contributions
Loan interest
Any other taxable income not included in the quarterly updates
MTD-Compatible Software Setup
HMRC requires all records to be maintained using MTD-compatible software.
We will support you with:
Selecting suitable software
Setting up your digital bookkeeping system
Training on uploading transactions and categorising expenses
Connecting your software securely to HMRC
Proper setup at the start helps reduce errors and avoids future compliance issues.
GOV.UK / Government Gateway Login (Mandatory)
To use MTD, you must have an active GOV.UK / Government Gateway account. This allows you to:
Access your digital tax account
Approve software connections
Authorise us to act on your behalf
If you already have a login, please make sure you know your username and password.
If you need to create one, visit:
👉 https://www.gov.uk/log-in-register-hmrc-online-services
You may need documents such as a passport or driving licence, a recent payslip or P60, and address details for identity verification.
We strongly recommend completing this step as early as possible.
Authorising Us as Your MTD Agent
Before we can act for you under MTD, HMRC requires digital authorisation.
The process is straightforward:
We send you a secure HMRC authorisation link
You log in using your GOV.UK details
You approve us as your MTD agent
HMRC confirms the authorisation
Without this approval, we cannot submit returns, access your records, or complete your Final Declaration.
Recommended Banking Setup
MTD compliance is significantly easier when you have:
A separate business bank account
Bank feeds linked directly to your accounting software
This reduces errors, saves time, and simplifies quarterly reporting.
Fees – Important Information
Previously, you were charged a single annual fee for one tax return.
Under MTD, this now includes:
Four quarterly submissions
One annual Final Declaration
Ongoing digital record review and support
Software setup and training
Increased contact and compliance monitoring
We will review our fees to reflect this additional work. Please be assured:
Our pricing will remain transparent and competitive
Any increase will reflect only the additional workload
You will be informed of revised fees before April 2026
A full review will be carried out once we’ve discussed your record-keeping method and how you’ll provide information monthly or quarterly.
Your Next Steps – Action Required
Please:
Confirm that you would like us to manage your MTD obligations
Ensure you have an active GOV.UK login
Complete the HMRC authorisation link when received
Prepare to keep digital records from 6 April 2026
Tell us how you currently keep records (software, spreadsheets, paper)
Consider opening a separate business bank account if you don’t already have one
We're Here to Help
We appreciate that MTD represents a significant change. Our role is to make this transition as smooth and stress-free as possible.
We’ll handle the submissions, guide you through setup, and provide ongoing support whenever you need it.
If you have any questions or need help getting started, please contact us via the contact form.