Stressing Over Making Tax Digital? Make It Simple With Our MTD Accountants

Q: What is the best software for MTD?

At Accotax , we work with all major HMRC-recognised MTD software , including Xero, QuickBooks, FreeAgent, Sage , and others. We’ll recommend the right software based on your business needs, and can also guide you towards cost-effective or free solutions that simplify your bookkeeping and ensure full MTD compliance. Need help choosing the best option? Get in touch with Accotax today.

Making Tax Digital (MTD) is a UK government initiative aiming to simplify and modernise the tax management system. Under MTD, HMRC requires businesses to maintain digital records and submit income and expense data electronically. This will reduce the time spent on manual reporting, allowing businesses to focus more on growth and operational improvement. At Accotax, our MTD accountants understand the challenges associated with complying with Making Tax Digital. From selecting MTD-compatible accounting software and overseeing data migration to streamlining digital recordkeeping, we’ll help you navigate the complexities of MTD accounting. Our professional Making Tax Digital Accountants will provide the following key accounting services:

MTD-Compliant Software Setup, Training and Support
Digital Bookkeeping
Handling all aspects of MTD for VAT Compliance
Handling all aspects of MTD for ITSA
Digitally Preparing and Filing VAT and Income Tax Returns
Data Migration and System Integration
Tax Planning & Advisory

MTD For ITSA - Everything You Need To Know

To enhance accuracy and streamline compliance, MTD for ITSA (Income Tax Self-Assessment) introduces mandatory digital recordkeeping and the use of MTD-compatible software for digitally submitting returns to HMRC. From April 2026, the scheme will apply to Self-employed individuals and Landlords earning property income. While the traditional Self-Assessment returns required annual filings only, MTD for ITSA requires quarterly updates and a final declaration at the end of the tax year.

The initial phases of Making Tax Digital (MTD) were introduced in April 2019 for VAT-registered businesses above the £85,000 threshold, and extended to all VAT-registered businesses in April 2022. From April 2026, MTD for Income Tax Self-Assessment (ITSA) will apply to individuals earning over £50,000, followed by those earning over £30,000 in April 2027.

At Accotax, our MTD accountants will make sure you’re fully prepared for each phase of Making Tax Digital.

MTD Cloud Accountants - Smart, Stress-free Taxes Guaranteed

Our expert MTD cloud accountants will help your business comply with HMRC’s Making Tax Digital requirements using cloud-based accounting software. They specialise in modern, digital-first financial management by leveraging platforms such as Xero, QuickBooks, Dext, and others to streamline bookkeeping, automate processes, and enable real-time tax reporting. Our MTD cloud accountants also set up and manage MTD-compliant software, handle quarterly and annual digital submissions, and provide training and support to ensure clients use these tools effectively.

Feeling stressed? At Accotax, your dedicated MTD accountant (UK) is ready to handle all of your MTD requirements, giving you the freedom to prioritise your business goals.

FAQs – MTD for ITSA

What is MTD for ITSA?

MTD for ITSA (Making Tax Digital for Income Tax Self Assessment) is a new HMRC system requiring self-employed individuals and landlords to keep digital records and submit quarterly tax updates using MTD-compatible software.

When does MTD for ITSA start?

MTD for ITSA starts in April 2026 for individuals with gross income over £50,000, in April 2027 for those earning over £30,000, and it is expected to apply to those earning over £20,000 from April 2028 (subject to future confirmation by HMRC).

Who must follow MTD for ITSA rules?

Sole traders and landlords with income over the threshold must follow MTD rules. Those earning under £30,000 may be included at a later stage.

No, not anymore. Previously, businesses had to manually sign up for MTD for VAT. Now, HMRC automatically signs up newly VAT-registered businesses for MTD as part of the VAT registration process. So, if you’re registering for VAT now, you’ll be automatically enrolled into MTD for VAT. No separate MTD registration is required.

What is the End-of-Period Statement (EOPS)?

The EOPS is a year-end summary of your income and expenses that adjusts any estimated figures submitted in the quarterly updates.

What are quarterly updates?

Quarterly updates are digital reports of income and expenses that must be submitted to HMRC every 3 months via MTD software.

What is the best software for MTD?

At Accotax, we work with all major HMRC-recognised MTD software, including Xero, QuickBooks, FreeAgent, Sage, and others. We’ll recommend the right software based on your business needs, and can also guide you towards cost-effective or free solutions that simplify your bookkeeping and ensure full MTD compliance. Need help choosing the best option? Get in touch with Accotax today.