Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) comes into effect from April 2026 for businesses, self-employed individuals, and landlords with gross business or property income over £50,000.
MTD for ITSA will follow in April 2027 for those with similar incomes over £30,000.
The question? How soon should your business use cloud-based compatible software before that deadline?
The answer? The sooner, the better.
Beyond compliance, the benefits of MTD cloud accounting software include
- Reduce human error by keeping digital records and submitting tax information digitally
- Easily capture and digitise receipts using associated apps
- Making important decisions faster with a real-time overview of your financial position and performance
- Automate significant financial functions, like cashflow forecasting
- Reduce your costs and saves you time by remaining connected to your business through secure, remote servers
- Enjoy up-to-date software with all the latest functions and legislative compliance
- Save your work automatically as you go. Saving you both time and money on backup procedures
- Collaborate with your accountant anywhere in the world, at any time.
MTD-compliant cloud accounting software will generate the necessary summary updates to send to HMRC every quarter via your HMRC digital account under Making Tax Digital.
You can see how much tax you owe based on the information you have provided so you can be better prepared for future tax bills.
Preparing for MTD by having the correct software in place and ready to use will ensure a smooth transition to the new system, plus the benefits go far beyond compliance. Get in touch with our Head of Cloud Accounting for advice.
