MTD for ITSA - or making tax digital for income tax self assessment

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

MTD will be rolled out in stages;

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!

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 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

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!

It may seem to be quite a daunting new set of rules, but we are here to assist you with making the transition. 

More frequent submissions will also help you avoid nasty surprises. Big tax bills can accumulate over the course of a year but when tax is calculated quarterly, things are far less likely to get out of hand. The new system will also create more opportunities for advisors (i.e. us!) to help with tax planning.

There are other perks to MTD; online accounting software also allows us and our clients to:

• access the business’s accounts from anywhere there’s internet
• create ‘bank feeds’ so transaction data flows straight into the ledger
• collaborate online by leaving and receiving messages within the software

• Online accounting software can also sync with other online services such as POS software, inventory management software, or time-recording apps.