MTD for ITSA: What You Need to Know and How to Prepare
Posted on 21st March 2025
Have you recently received a brown envelope from HMRC? If so, don’t panic! It’s part of HMRC’s campaign to raise awareness of the upcoming Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) changes.
At Bidwell Accountancy Ltd, we understand that tax changes can feel overwhelming—but we’re here to make the transition easy for you.
What is MTD for ITSA?
MTD for ITSA is part of HMRC’s ongoing initiative to digitise the UK tax system, making tax returns more streamlined and reducing errors. If you’re a sole trader or landlord, these changes will affect you.
Who Needs to Comply and When?
✅ From April 2026 – If your total self-employment and/or property income (not profit) is over £50,000, you must register for MTD for ITSA.
✅ From April 2027 – If your income is over £30,000, you’ll need to comply.
What This Means for You
Under the new rules, you’ll need to:
📌 Keep digital records of all income and expenses.
📌 Use MTD-compatible accounting software to manage your bookkeeping.
📌 Submit quarterly updates to HMRC.
📌 File a digital tax return at the end of each tax year.
Have You Received an HMRC Letter? Here’s What to Do Next
From April 2025, HMRC will begin sending letters to those whose 2023/24 tax return shows a total self-employment and/or property income over £50,000. If you receive one, don’t ignore it—use it as a prompt to get ahead of the changes now.
Let’s Get You Ready for MTD
Receiving a formal letter from HMRC can be unsettling, but there’s no need to worry. You still have time to update your processes and become MTD-compliant with minimal stress.
At Bidwell Accountancy Ltd, we can:
✔️ Explain how MTD for ITSA affects you.
✔️ Help you transition to digital record-keeping.
✔️ Set you up with MTD-compatible cloud accounting software (such as Xero).
✔️ Ensure you remain fully compliant and tax-efficient.
📞 Get in Touch Today!
Don’t wait until the last minute—start preparing now with expert guidance.
📧 Email us: info@bidwellaccountancy.com
📞 Call us: (01908) 380391
🌐 Visit our website: www.bidwellaccountancy.com
We’re here to simplify tax, reduce stress, and keep your business compliant. Let’s get MTD-ready together! 🚀
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