When does MTD for ITSA actually start?

6 April 2026 for self-employed and landlords with total business income over £50,000. 6 April 2027 for those over £30,000. Government has deferred this twice — 2026 is the current live date.

Does MTD affect limited companies?

Not yet. MTD for Corporation Tax is planned but not before 2026. Companies already file digitally for VAT and PAYE. The big change now is for sole traders and landlords.

Can I still use spreadsheets?

Only if combined with bridging software that submits to HMRC. Spreadsheets alone won't meet the digital record-keeping rules.

What's the penalty if I miss a quarterly submission?

Points-based. One point per missed return. Hit the threshold (four points for quarterly filers) and you get a £200 fine, then £200 per subsequent miss.

Do I need an accountant for MTD?

You don't legally need one. But quarterly filing adds a fixed overhead. Most sole traders find an accountant pays for themselves in time saved and penalties avoided.

How does Halewood handle MTD?

We're Xero-only, MTD-ready . For existing clients, quarterly submissions are part of the monthly package. For new clients, we can have you MTD-compliant in two weeks. Small-business pricing here .

Making Tax Digital, explained.

ITSA starts 6 April 2026. Self-employed and landlords with business income over £50,000 will file quarterly from compatible software. Most sole traders haven't prepared. Here's what it actually means and what you do about it now.

Book a call

Making Tax Digital, at a glance.

Making Tax Digital is HMRC's plan to replace annual tax returns with quarterly digital updates from compatible software. Who it affects: self-employed and landlords with total business income over £50,000 from 6 April 2026. What changes: quarterly updates instead of one annual return. Penalties: points-based.

MTD at a glance.

Mortgages, protection, and everything in between.

Who it affects

Self-employed and landlords with total business income over £50,000 from 6 April 2026. Over £30,000 from 6 April 2027. Everyone else later.

What changes

Quarterly updates instead of one annual return. Digital records in compatible software. End-of-period statement and final declaration each year.

Penalties

Points-based. Miss a submission, get a point. Four points as a quarterly filer triggers a £200 fine, then £200 per subsequent miss.

What MTD actually means in practice.

The rules are simple. The logistics catch most sole traders out.

You need compatible software

HMRC-approved list. Xero works. FreeAgent, QuickBooks, Sage too. Spreadsheets alone won't meet the rules.

You file five times a year, not once

Four quarterly updates plus a final declaration. Most sole traders haven't filed at this cadence before. Plan for the time overhead.

Records must be digital

Receipts, invoices, expenses — captured in software, not shoved in a shoebox. Apps like Xero handle receipt capture from the phone.

Common questions

Clear answers to the questions people often ask before getting started.

6 April 2026 for self-employed and landlords with total business income over £50,000. 6 April 2027 for those over £30,000. The 2026 date is current — it has been deferred twice before.
Not yet. MTD for Corporation Tax is planned but not before 2026. Companies already file digitally for VAT and PAYE. The big change right now is for sole traders and landlords.
Only if combined with bridging software that submits to HMRC. Spreadsheets alone won't meet the digital record-keeping rules.
Points-based. One point per missed return. Four points for quarterly filers gets you a £200 fine, then £200 per subsequent miss.
You don't legally need one. But quarterly filing adds a fixed overhead. Most sole traders find an accountant pays for themselves in time saved and penalties avoided.
Xero-only, MTD-ready. For existing clients, quarterly submissions are part of the monthly package. For new clients, we have you MTD-compliant in two weeks. Small-business pricing here.

Making Tax Digital, explained.

Making Tax Digital, at a glance.

MTD at a glance.

Who it affects

What changes

Penalties

What MTD actually means in practice.

You need compatible software

You file five times a year, not once

Records must be digital

Common questions

Get MTD-ready before April 2026.

Sheffield Office

Chesterfield Office

Services

About

Support

Contact Us