This checklist is an essential resource for accountants and tax professionals preparing for Making Tax Digital (MTD) for Income Tax Self-Assessment (ITSA). It provides a structured, step-by-step guide to ensure compliance with HMRC’s new digital tax reporting requirements. By following the outlined steps, accountants can help their clients transition seamlessly to the new system before the mandatory start dates, avoiding last-minute complications and potential penalties.
What is MTD for ITSA?
MTD for ITSA is part of HMRC’s broader initiative to modernise the UK tax system by requiring digital record-keeping and online submissions. It applies to sole traders and landlords whose annual gross incomes exceed £30,000. The goal is to improve efficiency, reduce tax errors, and make tax administration more transparent and streamlined.
Under MTD for ITSA, affected taxpayers must:
- Maintain digital records of income and expenses using compatible accounting software.
- Submit quarterly updates to HMRC, providing real-time tax information instead of the traditional annual tax return.
- Adhere to revised reporting requirements, with penalties for non-compliance.
Implementation timeline
The rollout of MTD for ITSA will be phased to allow businesses to adjust:
- April 2026: Mandatory for those earning over £50,000 annually.
- April 2027: Mandatory for those earning over £30,000 annually.
Why download this checklist?
This checklist is an invaluable tool for accountants and tax professionals, ensuring they are well-prepared to assist their clients with the transition to MTD for ITSA. Key benefits include:
✅ Step-by-step guidance: Clearly outlines each action accountants need to take, from assessing clients’ eligibility to registering them for MTD.
✅ Software readiness: Helps accountants identify and implement the right MTD-compatible accounting software.
✅ Agent services account setup: Provides detailed instructions on setting up and managing an HMRC Agent Services Account for tax professionals handling multiple clients.
✅ Early preparation: Encourages voluntary early sign-up, allowing accountants and their clients to familiarise themselves with the new system before it becomes mandatory.
✅ Compliance assurance: Reduces the risk of non-compliance and associated penalties by ensuring all necessary steps are completed ahead of the deadlines.
Stay ahead of the curve
By downloading this checklist, accountants can take proactive steps to prepare for MTD for ITSA, ensuring that their clients transition smoothly and remain fully compliant with HMRC’s requirements. Early adoption and proper software integration will not only streamline tax reporting but also reduce administrative burdens, making tax management more efficient for accountants and businesses alike.
Download now and ensure your practice is MTD-ready before the 2026 deadline!
Resource pack
Download this resource in our MTD pack
At Bright, we’re committed to supporting accountants, not adding to their workload. That’s why we’ve created a set of practical, time-saving resources designed to help you educate and onboard your clients for Making Tax Digital for Income Tax Self Assessment (MTD for ITSA).
We understand that getting clients up to speed with MTD requirements can feel like a drain on your time – especially when you’d rather be focusing on profitable, advisory work. These resources are here to take the pressure off.
Because when your clients are prepared, your practice runs smoother, and you stay focused on the work that truly adds value.
