Making Tax Digital for Income Tax — Are You Ready?
Expert MTD ITSA guidance from setup through quarterly submissions. We handle the compliance so you focus on your business.
Plan Your MTD ITSA StrategyWhat Is MTD for Income Tax?
MTD ITSA (Making Tax Digital for Income Tax Self Assessment) transforms how you report income to HMRC. Instead of filing once per year, you submit quarterly digital updates.
Old Way (Annual Filing)
- One annual Self Assessment return
- File by 31 January after tax year end
- Paper records or spreadsheets
- Less frequent monitoring
- Last-minute rush every January
New Way (MTD ITSA - Quarterly)
- Four quarterly tax updates
- Spread throughout the tax year
- Digital records (software required)
- Real-time business monitoring
- Final return linked to quarterly updates
Key change: MTD ITSA requires digital records maintained throughout the year, not retroactively compiled for a tax return. This means better accuracy, easier compliance, and clearer visibility of your financial position.
Who Does MTD ITSA Affect? (Rollout Timeline)
MTD ITSA is being introduced in phases based on business turnover.
April 2026 - Now
Turnover over £50,000+
Sole tradersvand landlords earning over £50k must use MTD ITSA software. If this is you, we can help with immediate setup and compliance.
April 2027
Turnover over £30,000+
The threshold drops to £30k. Anyone earning above this must comply. This will cover many small businesses that weren't previously required.
April 2028
Turnover over £20,000+
The threshold drops to £20k. Anyone earning above this must comply. This will cover many small businesses that weren't previously required.
Even if not yet mandatory for you: We recommend moving to MTD software now. The earlier you start, the easier the transition will be. Plus, you'll have real-time visibility of your finances throughout the year.
How Quarterly Submissions Work
MTD ITSA quarterly submissions are straightforward once your software is set up.
Q1 (Apr-Jun)
Sales and expenses for Apr-Jun
Deadline: By 31 July
Q2 (Jul-Sep)
Sales and expenses for Jul-Sep
Deadline: By 31 October
Q3 (Oct-Dec)
Sales and expenses for Oct-Dec
Deadline: By 31 January
Q4 (Jan-Mar)
Sales and expenses for Jan-Mar
Deadline: By 31 May
What Gets Submitted in Each Update
Income
- Business sales/turnover
- Invoices issued
- Cash received
- Other business income
Expenses
- Business costs
- Equipment purchases
- Mileage (if claiming)
- Other allowable expenses
Software Requirements
You must use HMRC-approved MTD software. Spreadsheets and paper records are not acceptable under MTD ITSA rules.
Xero
- Our preferred choice
- Excellent mobile app
- Real-time bank feeds
- Built for MTD
From £14/month
QuickBooks
- Strong invoicing
- UK support
- Integrations available
- MTD ready
From £9/month
Sage
- Invoicing-focused
- Expense capture
- MTD compliant
- Excellent mobile app
From £5/month
What You Need to Do
- 1Choose one of the approved software options (we recommend Xero)
- 2Link your business bank account so transactions sync automatically
- 3Set up income and expense categories matching your business
- 4Keep receipts and invoices digitally for 6 years
- 5Submit quarterly updates as they become due
How Zenith Helps With MTD ITSA
We guide you through every stage of MTD ITSA compliance, from setup to quarterly submissions.
Planning & Assessment
We assess whether you're currently in scope and advise on software choices. If not mandatory yet, we help plan your transition.
Software Setup
We set up your chosen platform (usually Xero), configure income and expense categories, and connect your bank accounts for automatic sync.
Quarterly Support
We manage each quarterly submission, ensuring all figures are accurate and submitted by the deadline. You stay compliant without the stress.
Annual Linking Return
We prepare your final Self Assessment return, linking all quarterly updates and calculating your tax liability by 31 January.
Benefits of MTD ITSA (Even Though It's Mandatory)
While MTD ITSA is a compliance requirement, it actually brings real business benefits.
Real-Time Financial Visibility
You'll see your profit/loss, cash flow, and key metrics updated daily. No more guessing how your business is performing.
Easier Quarterly Reviews
Four smaller quarterly reviews are less daunting than one big annual accounting job. You stay on top of things throughout the year.
Better Record Organization
Digital records from day one mean no scrambling for receipts at tax time. Everything is organized and categorized automatically.
Faster Compliance
Once your software is set up, submissions take minutes. Most of the work is automated; we just verify and submit.
Reduced Audit Risk
HMRC has real-time visibility of compliant businesses. Digital records reduce the chance of disputes or misunderstandings.
Better Tax Planning
Quarterly reviews mean we can advise on tax-saving opportunities sooner, rather than discovering them at year-end.
Related Services
Self Assessment Returns
Your annual Self Assessment return links to MTD ITSA quarterly updates.
Learn MoreVAT Returns & MTD
If VAT-registered, you'll use MTD for VAT as well as income tax.
Learn MoreBookkeeping Services
Bookkeeping forms the foundation of your MTD ITSA records.
Learn MoreSoftware Setup & Training
We set up your MTD software and train you on how to use it.
Learn MorePlan Your MTD Strategy
Get a personalized MTD ITSA transition plan.
Learn MoreOur MTD Expertise
Learn about our experience with MTD implementation.
Learn MoreMTD ITSA Questions
Answers about Making Tax Digital for Income Tax.
Ready to Get MTD ITSA Right?
Whether you're in scope now or preparing for 2027/2028, we'll guide you through every step. Let's make MTD compliance simple.