“Making Tax Digital marks a major step forward in the UK’s tax system. With the right support, it doesn’t have to be complex or time-consuming. At Holland & Co, we make digital compliance simple, accurate, and efficient — giving our clients peace of mind and full confidence in their tax affairs.”
— Nigel Holland, Principal, Holland & Co Chartered Accountants
Holland & Co Chartered Accountants
Making Tax Digital for Income Tax Self Assessment (MTD for ITSA)
Guiding you through digital tax compliance with clarity and confidence.
Making Tax Digital (MTD) represents one of the most significant changes to the UK tax system in decades. Its aim is to make it easier for businesses, landlords, and individuals to keep on top of their tax affairs by maintaining and submitting records digitally.
At Holland & Co Chartered Accountants, we provide practical, expert guidance to ensure your business is fully prepared for the transition to MTD for Income Tax Self Assessment (ITSA). From software setup and record-keeping to quarterly submissions and compliance reviews, we make digital tax management straightforward and stress-free.
What is Making Tax Digital for ITSA?
MTD for ITSA requires self-employed individuals and landlords with qualifying income to:
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Keep digital accounting records; and
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Submit quarterly income and expense updates to HMRC using MTD-compatible software.
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This move is designed to reduce errors, improve accuracy, and give taxpayers real-time visibility over their tax position — but it also means new systems and processes must be in place.
When Does MTD for ITSA Start?
The introduction of MTD for ITSA has been phased to allow businesses time to prepare:
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From April 2026: Mandatory for individuals with annual income over £50,000 (combined self-employment and property income).
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From April 2027: Extended to those with annual income over £30,000.
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HMRC also plans to bring partnerships into the MTD regime at a later date, though no confirmed timetable has yet been announced.
Who Will Be Affected (and Who Is Exempt)?
You will be required to comply with MTD for ITSA if your gross annual income from self-employment and/or property exceeds the qualifying threshold.
You may choose to join voluntarily even if below the threshold — particularly if you wish to benefit from digital record-keeping and real-time financial data.
The following are not currently required to comply:
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Individuals earning below £30,000 (once phased in).
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Partnerships (until future rollout).
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Trustees, executors, and administrators.
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Trustees of registered pension schemes.
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What Changes Under MTD for ITSA?
Under MTD for ITSA, traditional annual tax returns will be replaced by a series of digital submissions:
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Quarterly Updates:
You will need to send HMRC updates every three months showing income and expenses for the period. -
End of Period Statement (EOPS):
At year-end, you’ll review and adjust the figures to reflect accounting adjustments, reliefs, and allowances. -
Final Declaration:
A digital confirmation of total income from all sources, replacing the Self Assessment tax return.
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These changes require compliant software and accurate bookkeeping — areas where our team provides full support and training.
How Holland & Co Can Help
We take care of the entire process, ensuring you remain compliant while maintaining clear financial visibility.
Our support includes:
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Setting up or upgrading MTD-compatible software such as KashFlow, Xero, or QuickBooks.
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Migrating existing accounting data safely and accurately.
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Training you or your staff to maintain digital records correctly.
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Submitting quarterly and annual MTD reports to HMRC.
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Monitoring deadlines and compliance to prevent penalties.
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Offering ongoing advice as HMRC updates legislation and technical requirements.
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Our goal is simple — to let you focus on running your business while we handle the digital tax compliance.
Why Work with Holland & Co
Established in 1986, Holland & Co Chartered Accountants has built a reputation for providing high-quality tax and business advisory services across the North West and beyond.
With over 39 years of experience, we understand both the practical and regulatory challenges faced by business owners, landlords, and self-employed individuals.
Our team combines accountancy expertise with technical understanding of MTD-compliant systems — ensuring your transition is smooth, efficient, and fully compliant with HMRC requirements.
Discover How We Can Make a Difference
We pride ourselves on delivering tailored tax and accounting solutions that fit your exact needs. Whether you are self-employed, managing property income, or operating a growing business, we can design a digital tax process that works for you.
“Let us handle the complexities, so you can focus on what matters most — running your business.”
Contact Us
If you’d like expert help preparing for Making Tax Digital for Income Tax Self Assessment, contact us today for friendly, professional advice:
Tel: 0151 420 6666
Email: nigel@hollandandcompany.co.uk
Address: Holland & Co Chartered Accountants, 102 Widnes Road, Widnes, Cheshire, WA8 6AX
