MTD for ITSA - or Making Tax Digital for Income Tax Self Assessment

Big changes are coming to the way self-employed individuals and landlords report their income. From April 2026, Making Tax Digital (MTD) for Income Tax Self-Assessment (ITSA) will become mandatory for those earning over £50,000 a year. If this applies to you, don’t worry—we’re here to help!

What is MTD?

MTD is an HMRC initiative designed to make tax reporting more efficient and accurate by moving everything online. Instead of submitting one tax return a year, you’ll need to:

✅ Keep digital records of your income and expenses
✅ Submit quarterly updates to HMRC using MTD-compatible software
✅ Make a final declaration at the end of the tax year to confirm your total income

Who Needs to Comply?

✅ From April 2026 – Self-employed individuals and landlords earning over £50,000
✅ From April 2027 – Those earning between £30,000–£50,000

✅ From April 2028 – Those earning between £20,000–£30,000  

Although MTD doesn’t apply to everyone just yet, HMRC is expected to roll it out further in the future—so it’s a good idea to be prepared!

How We Can Help

We know that tax and accounting changes can feel overwhelming, but that’s what we’re here for! At Stoney Philbin & Co, we make things simple and stress-free.

We’ll be using Xero, a leading cloud-based accounting software, to manage MTD reporting. If you’re not already set up on Xero, we can help you get started and show you how it works.

If you’d rather not worry about the admin side of things, we can handle MTD submissions for you—just let us know, and we’ll take care of it!

Want to Get Ahead? Join the MTD Pilot Scheme!

HMRC is running an MTD pilot from April 2025, giving you a chance to get familiar with the new system before it becomes compulsory. Taking part early means you can:

✅ Get used to digital record-keeping without pressure
✅ Identify any issues before the deadline
✅ Make a smooth and stress-free transition

Let’s Make This Easy for You!

We’re a friendly, approachable team of accountants who believe in making tax as hassle-free as possible. Whether you need help setting up Xero, advice on MTD compliance, or just want us to handle everything for you, we’ve got you covered.

✅ Get in touch today and let’s get MTD sorted together—before the deadlines sneak up!