Making Tax Digital for Income Tax (MTD IT)

Name: Sandison Easson
Address: Rex Buildings, Cheshire, Wilmslow, SK9 1HY
Telephone: 01625 527351
Price range: Call us for details

At Sandison Easson & Co, we’re here to make your transition to Making Tax Digital for Income Tax (MTD IT) as smooth as possible.

MTD IT is part of HMRC’s plan to modernise the tax system. From April 2026, most self-employed individuals and landlords earning over £50,000 (combined) will be required to keep digital records and submit quarterly updates to HMRC. Your 2024/25 tax return ultimately decides whether you need to register from April 2026.

We’ve already started testing the system through HMRC’s pilot scheme and continue to guide selected clients through it — so rest assured, we’re ready for what’s coming.

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Who Does MTD IT Affect?

From April 2026, MTD IT will apply to:

Self-employed individuals (not limited companies or partnerships/LLPS)
Landlords with combined business and property income over £50,000

From April 2027, the threshold drops to £30,000 and then from April 2028 it reduces further to £20,000. This means that more and more taxpayers will be caught under the new rules, perhaps even unexpectedly.

What Will You Need To Do?

MTD IT means:

Keeping digital records of your income and expenses
Using compatible software (like Xero)
Sending quarterly updates to HMRC
Submitting a final end-of-year statement

How We Can Help You

We can offer you full support from start to finish including: getting you set up on software, registering you with HMRC, managing your book-keeping, submitting the quarterly returns and end of year accounts on your behalf.

We’ve already begun onboarding clients into HMRC’s MTD IT pilot scheme to test the new system and ensure everything runs smoothly.

We can offer you a bespoke service depending on your wants and needs. Your involvement can be kept to an absolute minimum which allows you to focus on what you do best.

Step-by-Step Guide for Clients

Here’s an overview of what the MTD IT journey looks like from start to finish:

1. Check if You Qualify
We’ll confirm whether you fall within the MTD IT threshold based on your tax return.

2. Get Set Up on Xero (or another approved software)
If you do meet the MTD threshold, the first step will be helping you transition onto approved software. We are partnered with two of the biggest cloud-based softwares: Xero and FreeAgent.

We'll help you:

Choose the right software
Set up your account license
Connect your live bank feed

3. Registering you with HMRC
Once your software has been sorted, we will get you formally registered with HMRC for MTD IT.

4. We Keep Your Records Up to Date
We’ll complete your bookkeeping regularly using your bank transactions and invoices. We can work alongside your current record-keeping practices including any existing software that you might use.

5. Quarterly Submissions
We’ll handle the quarterly updates to HMRC on your behalf.

6. Final Declaration at Year-End
At the end of the year, we’ll prepare your final declaration, similar to your current tax return — to confirm your figures are correct and make any necessary accounting adjustments.

7. Ongoing Support
We’re on hand to guide you at every step. If you ever have questions, we’re just a phone call or email away.

Still Got Questions?

You’re not alone — this is a big change, and we’re here to help.

If you’d like to join the pilot, or just want to know more, please get in touch with your usual contact at Sandison Easson & Co, or call our team on 01625 527351.