Making Tax Digital for Accountants and Bookkeepers: MTD Compliance Kit Essentials

From 6 April 2026, Making Tax Digital for Income Tax Self Assessment (ITSA) becomes mandatory for businesses with gross income above £50,000. From 6 April 2027, the threshold drops to £30,000. This isn't a future consideration — it's already here. If you haven't prepared your clients' systems, you're behind.

Unlike VAT MTD (introduced in 2019), ITSA affects sole traders, partnerships, and landlords directly. For accountants and bookkeepers, this fundamentally changes how you file accounts and manage tax returns. Quarterly digital reporting replaces annual returns. Software integration becomes essential. Penalties for non-compliance are substantial—£200 for a late submission, rising to £500 after six months non-compliance.