Making Tax Digital for Income Tax Self Assessment (MTD ITSA) is a big change coming to many sole traders and landlords, but it’s also a fantastic opportunity to modernise how you manage your finances.
Rather than seeing it as just another requirement, we believe it’s a chance to take control, get more visibility, and work smarter. And the best part? By acting now, you’ll be well ahead of the curve.
What is MTD ITSA?
From 6 April 2026, if you have total gross income over £50,000 from self-employment and/or property rental, you’ll need to:
- Keep digital records
- Send quarterly summary updates to HMRC through approved software
- Submit a final declaration by 31 January after the tax year ends
Those with income between £30,000 and £50,000 will follow from 6 April 2027.
The qualifying income is assessed based on the tax year two years prior. For example, your income in 2024/25 decides if you need to join from April 2026.
(Good news: If your income is below £30,000, you’re not required to join yet.)
This is part of HMRC’s wider plan to make tax administration more effective, efficient, and easier for businesses and individuals alike.
Why Getting Ahead Matters
Getting prepared now is one of the best moves you can make. It means:
- No last-minute panics or rushed software setups
- Time to learn the new processes at your own pace
- Smoother cash flow management with real-time figures
- Better insights into your business performance
- The chance to work more closely with your accountant to optimise your tax position
Early adopters often find they run their business more confidently, with less guesswork and more accurate numbers.
Why Xero is the Right Choice
We recommend Xero because it’s simple, intuitive, and fully compliant for MTD ITSA. With Xero you can:
- Link your bank accounts for live data feeds
- Capture receipts on the go with your phone
- Easily categorise income and expenses
- Send quarterly updates to HMRC automatically
- Collaborate easily with us as your accountant, for faster, more proactive advice
Plus, the switch is straightforward, and we’ll guide you through every step.
How We Can Help
At Greystone Advisory, we’ve helped dozens of businesses and landlords modernise their accounting systems in a stress-free, supportive way.
We can, set you up with Xero quickly and correctly, provide training tailored to your needs, manage your quarterly submissions if you prefer to stay hands-off, or offer real-time advice based on up-to-date numbers
Key Takeaways:
- MTD ITSA starts from April 2026 for incomes over £50,000, April 2027 for £30,000–£50,000.
- Early preparation gives you the best chance to save time, stress, and money.
- Xero makes digital accounting simple, accurate, and painless.
- We’re here to make the transition easy and positive for you!
Ready to get ahead?
Contact us at Greystone Advisory today, we’ll help you set everything up and make sure you’re ready for the future.
