MTD ITSA support that keeps digital tax straightforward
From April 2026, Making Tax Digital for Income Tax will begin affecting sole traders and landlords. Merranti can help you keep digital records, use compatible software and manage quarterly updates without the process taking over your business.
The rollout is based on qualifying gross income
Qualifying income is the total gross income from self-employment and property before expenses. The rules are being introduced in stages.
Use MTD for Income Tax from 6 April 2026 when the 2024 to 2025 tax return shows qualifying income above £50,000.
Use MTD for Income Tax from 6 April 2027 when the 2025 to 2026 tax return shows qualifying income above £30,000.
Use MTD for Income Tax from 6 April 2028 when the 2026 to 2027 tax return shows qualifying income above £20,000.
A practical service for setup, submissions and year-end tax
We guide you through the change, help establish a workable digital process and stay involved throughout the year.
Low-cost digital solutions
We help you choose proportionate, HMRC-compatible software rather than paying for features you do not need.
Quarterly submission management
Our team can manage your quarterly updates, check the underlying records and keep each submission on schedule.
Easy onboarding
We provide clear instructions, digital forms and direct support so the move to new systems is structured and manageable.
Ongoing support
We provide reminders, deadline tracking, accounting advice and help identifying relevant tax-planning opportunities.
MTD year-end review
We finalise the tax return, include other income sources and review the position before the final submission is made.
Software and record checks
We review how income and expenses are captured so the digital records are accurate, complete and easy to maintain.
MTD ITSA changes how information is recorded and reported
It does not simply replace one annual tax return with four full tax returns.
You will use compatible software to create and preserve digital records of business or property income and expenses. Simple summaries of those records are sent to HMRC every quarter.
At the end of the year, you still need to review the complete tax position, include other income and gains, claim relevant reliefs and allowances, submit the tax return and pay the tax due.
Keep digital records
Record self-employment and property income and expenses throughout the year.
Send quarterly updates
Submit summaries of the digital records using MTD-compatible software.
Complete the tax return
Review the final position and submit the annual tax return through compatible software.
Sole traders and landlords should check their combined gross income
The threshold is based on qualifying income before expenses, not taxable profit.
If you have both self-employment and property income, the gross amounts are combined when checking whether MTD for Income Tax applies.
Some people may qualify for an exemption, including in cases of digital exclusion. Exemptions are not automatic in every circumstance, so the position should be checked before assuming the rules do not apply.
Better records can support more than compliance
Regular digital bookkeeping can improve visibility over income, expenses and cash flow while reducing the amount of work required at the tax-year end.
Records that fit the business
We help establish a routine that works around the way your business or property activity actually operates.
More current information
Regular bookkeeping can provide better information for decisions instead of waiting until the annual tax return.
Advice throughout the year
Merranti remains involved between submissions, helping with questions, deadlines and the wider financial position.
How the transition works
We break the process into clear stages so you know what needs to happen and who is responsible for each part.
Check whether and when MTD applies
We review your self-employment and property income, the relevant tax returns and any potential exemption issues.
Choose software and set up records
We help select compatible software, establish categories and create a practical process for capturing transactions.
Manage updates and year-end reporting
We support the quarterly updates and complete the annual review and tax return with the wider tax position considered.
Accounting support built around the way your business works
We are not only focused on submitting figures. Our team helps clients understand the process, build reliable systems and use better information to plan ahead.
With clear onboarding, fixed-fee options and ongoing advice, you have a team available throughout the year rather than only at the tax deadline.
- 01342 836 557
- contactus@merranti.com
- Offices across the South East
- Clients supported nationwide
MTD ITSA questions
Clear answers to the main questions raised by sole traders and landlords preparing for the new reporting system.
What software and records are required?
You must use compatible software to create and keep digital records of relevant self-employment and property income and expenses, send quarterly updates and complete the year-end tax return.
Are there exemptions from MTD for Income Tax?
Exemptions may be available in certain circumstances, including digital exclusion. The specific conditions and application process should be checked against current HMRC guidance.
Does MTD ITSA mean paying tax quarterly or earlier?
No. MTD for Income Tax changes how information is recorded and reported. It does not by itself change the normal Income Tax payment deadlines.
Do quarterly updates replace the annual tax return?
No. Quarterly updates are summaries of digital records. You still need to review and submit the full tax return after the end of the tax year.
What income counts towards the threshold?
The threshold uses total gross income from self-employment and property combined, before expenses are deducted.
Do I need separate software for every business or property?
Your software must be able to maintain the required records and make the relevant submissions for each income source. The suitable setup will depend on the number and type of businesses and properties involved.
Prepare for MTD ITSA before the first reporting period begins
Speak to Merranti about eligibility, compatible software, digital records, quarterly updates and the ongoing accounting support you will need.