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Making Tax Digital for Income Tax Self Assessment (MTD for ITSA)

What Sole Traders Need to Know & How TACS Can Help You Adapt

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What is MTD for ITSA?

Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) is a government initiative designed to modernize tax reporting for sole traders and landlords. Instead of submitting an annual tax return, taxpayers will need to keep digital records and submit quarterly updates to HMRC using MTD-compatible software. This shift aims to reduce errors, improve efficiency, and provide real-time tax insights—but it also means sole traders must adapt quickly to new digital requirements.

 

Who Does MTD for ITSA Apply To?

MTD for ITSA applies to individuals who file Self Assessment tax returns and earn income from:

📌 Self-employment (sole traders)

📌 Property rental (landlords)

However, not everyone is required to comply immediately.

The rollout is phased:

📅 April 2026 – Sole traders and landlords earning over £50,000 must comply.

📅 April 2027 – Those earning between £30,000 and £50,000 will be included.

📅 Future Expansion – Those earning £20,000+ may be required to join later.

🔹 Exemptions: Some individuals may be exempt due to digital exclusion or other special circumstances.

 

What This Involves for sole traders and landlords:

If your gross qualifying income (before expenses) exceeds the threshold, you must:

✅ Keep digital records of income and expenses using MTD-compatible software.

✅ Submit quarterly updates to HMRC instead of an annual tax return.

✅ Make a final declaration by January 31 following the tax year to confirm all income and expenses.

This means sole traders must shift from traditional bookkeeping to digital tax management—which can be time-consuming and complex without expert guidance.

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How Can TACS Help?

At TACS, we specialize in helping sole traders transition smoothly to MTD for ITSA. Here’s how we support you:

✅ MTD-Compatible Solutions – We’ll set up your records with the right software—so you stay compliant without the hassle.

✅ Quarterly Tax Management – Forget tax worries—we’ll prepare and submit your quarterly updates on your behalf.

✅ Expert Guidance – We break down complex tax rules into plain, easy-to-understand advice.

✅ Cost-Effective Services – Get a tailored, affordable tax solution without overspending on unnecessary tools.

✅ Personalized Support – Whether you need one-on-one assistance or a full-service tax management plan, we’ve got you covered.

With TACS, you won’t need to figure it all out yourself—we handle the technical details, so you focus on running your business!

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🔹How to Prepare for MTD (With TACS by Your Side!)

📌 Find an MTD-Compatible Accounting System – We help you choose the right software for your needs.

📌 Start Digital Record-Keeping Now – Get ahead by switching to digital bookkeeping early.

📌 Join HMRC’s Pilot Program – We can help you register for testing, so you know what to expect before it’s mandatory.

🚀 Don’t wait until the last minute—let TACS handle your tax digitalization today!

🚀Stay Ahead – Contact TACS Today!

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Making Tax Digital is coming fast, and sole traders must adapt. The good news? TACS makes it effortless!

📞 Call us now for expert assistance.

📧 Email us today for a free consultation.

💼 TACS – Your Trusted Accounting Partner for MTD & Beyond!

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