What is Making Tax Digital for Income Tax?
MTD for ITSA is part of the government’s initiative to modernise the UK tax system. From April 2026, self-employed individuals and landlords earning over £50,000 annually will be required to keep digital records and submit quarterly updates to HMRC using MTD-compatible software. Those earning over £30,000 will need to comply from April 2027.
How Will This Impact You?
- Quarterly Digital Reporting: Instead of annual Self-Assessment tax returns, you’ll submit updates every three months.
- MTD-Compliant Software: You must use approved software to maintain digital records and file reports.
- Improved Tax Visibility: With real-time tax estimates, you’ll have better financial planning and reduced end-of-year surprises.
How Parker Russell UK Can Help
Transitioning to a new tax system can be challenging, but we’re here to help:
- Software Setup & Training: We’ll guide you in selecting and using MTD-compliant software.
- Compliance Support: Our experts will ensure your records meet HMRC’s requirements.
- Ongoing Advice: We’ll keep you informed of any changes and offer tailored solutions to ease your transition.
What You Should Do Next
✔ Review Your Income – Determine if you fall within the MTD for ITSA thresholds.
✔ Choose MTD-Compliant Software – If you’re unsure, we can recommend the best options.
✔ Start Keeping Digital Records – The sooner you transition, the smoother it will be.
✔ Seek Expert Support – Contact our team for personalised guidance.
Get Ready Now!
Making Tax Digital is a major shift, but with the right approach, it can simplify your tax management and improve efficiency. Let Parker Russell UK help you stay ahead of these changes.
