Making Tax Digital (MTD) for Income Tax Self Assessment represents one of the biggest changes to the UK tax system in decades. If you're a sole trader or landlord with qualifying income, this will affect how you report your earnings to HMRC.
Under MTD for ITSA, you'll need to keep digital records using compatible software and submit quarterly updates to HMRC, instead of filing a single annual self assessment tax return. This means HMRC will have a more up-to-date picture of your income throughout the year.
The good news? If you're a Clever Accounts client, you're already prepared. Our FreeAgent accounting software is fully MTD compliant, and your dedicated accountant will handle the transition for you.
Key dates to remember: MTD for ITSA is being rolled out in phases. Sole traders and landlords with annual business or property income above £50,000 will need to comply first. Those with income above £30,000 will follow in the next phase.
What you need to do: Start keeping digital records now if you haven't already. Your Clever Accounts software makes this easy — simply log your income and expenses as you go, and we'll take care of the rest.
If you have any questions about MTD and how it affects your business, your dedicated accountant is always just a phone call away. We're here to make the transition as smooth as possible.