Making Tax Digital, MTD & ITSA

Making Tax Digital, MTD and ITSA

 

Making Tax Digital, MTD, and  Income Tax Self Assessments, ITSA, is coming for and is the biggest change at HMRC for Sole traders or Landlords.
The new rules focus on digital records, improved tax reporting and the use of digital software for millions of sole traders and landlords.
We can help you so there is no stress, we are ready for the changes and can you through them seamlessly.

 

What is MTD for ITSA?
It’s the way sole traders and landlords record their income; it will have to be digital on accounting software.
Your historic annual self-assessment filing will be replaced by this in April 2026, subject to your size.
All income and expenditure will have to be recorded on FreeAgent and Xero; B4Bookkeeping is Gold partners with these software’s

 

When Does it Start?
MTD for ITSA will come into force in April 2026 for people earning over £50,000, and  April 2027 if you earning over £30,000

 

What will you have to do ?
Under the MTD for ITSA you will have to:
•    Record business income (sales) and expenses correctly in a digital format, like Xero or FreeAgent
•    Send quarterly updates of revenue to HMRC on the 7th Feb, May, Aug and Nov
•    Submit a total yearly income in the form of a final declaration, like your self-assessment currently, by the 31st Jan

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B4Bookkeeping can manage all your MTD for ITSA needs. We will use either FreeAgent or Xero to manage your filings so you are digitally compliant.
We are Chichester-based but can support you anywhere in the UK.

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