Sussex: 01903 201940
Surrey:  01737 847779

MTD ITSA – Complete 2026 Guide to Making Tax Digital for Income Tax Self-Assessment

Making Tax Digital for Income Tax Self-Assessment support – Smart Accountants Sussex & Surrey

Helping You Get Ready for the Digital Future of Tax

Making Tax Digital for Income Tax Self-Assessment (MTD ITSA) is one of the biggest shifts in the UK tax system in decades. From April 2026, many self-employed individuals and landlords will no longer be able to rely on one annual tax return. Instead, HMRC will require quarterly digital updates filed through approved software.

For business owners, freelancers, and property investors, this change can feel overwhelming. More deadlines, new technology, and stricter record-keeping rules may seem like extra admin. But with the right guidance, MTD ITSA is also an opportunity — a chance to get better financial visibility, avoid end-of-year surprises, and run your business more efficiently.

At Smart Accountants Sussex & Surrey, our goal is to make this transition simple and stress-free. We specialise in helping sole traders, landlords, and small businesses prepare for HMRC’s digital future, offering tailored support so you stay compliant and in control.

📞 Book a Free Consultation

Who Will Be Affected by MTD ITSA?

MTD ITSA doesn’t apply to everyone straight away — it’s being phased in gradually. The rules will first affect those with higher incomes before expanding further. Here’s a breakdown of who needs to prepare:

  • From April 2026 – Sole traders and landlords with annual income above £50,000
  • From April 2027 – The threshold lowers to £30,000
  • Individuals with mixed income – for example, employment plus rental or self-employment income
  • Partnerships – not yet included, but expected to join later

 

👉 Not sure if the rules apply to you? Our experienced accountants can review your situation and guide you through the requirements.

How We Can Help with MTD ITSA

Our services are designed to make Making Tax Digital simple, from digital bookkeeping setup to quarterly submissions.

  • Readiness Review – check whether MTD applies to you and when.
  • Digital Bookkeeping Setup – implement HMRC-compliant software, including Xero, tailored to your business.
  • Quarterly Tax Updates – accurate and timely submissions to HMRC.
  • Tax Planning – use real-time data for smarter financial decisions.
  • Ongoing Support – continuous help for self-employed clients and landlords.

 

💻 Get MTD ITSA Support Now

Local MTD ITSA Services Across Sussex, Surrey, London & the South East

We provide flexible support both locally and remotely for clients preparing for digital tax reporting. Whether you want in-person meetings or prefer a fully online service, we adapt to your needs. Our cloud-based systems mean you’ll always have real-time access to your accounts, while our team ensures your quarterly updates and record-keeping run smoothly.

  • Brighton & Worthing – helping coastal businesses and landlords make the switch to digital tax returns with ease.

  • Dorking & Tadworth – supporting Surrey sole traders and landlords with quarterly submissions and MTD-compatible software setup.

  • London – providing remote MTD ITSA services for individuals and businesses in the capital who want proactive digital tax advice.

  • Wider Sussex and Surrey – from market towns to rural businesses, we offer expert guidance across the region and beyond.

 

Wherever you’re based — from Brighton to London — our experienced MTD for ITSA accountants provide flexible remote or in-person support, helping you manage quarterly updates, keep accurate digital records, and approach tax season with confidence.

MTD ITSA services for sole traders and landlords across Sussex, Surrey, London and the South East

Why Choose Smart Accountants for MTD ITSA?

MTD ITSA is a big change, but the right accountant can make it simple and stress-free. At Smart Accountants, we combine local expertise with specialist digital tax knowledge to keep you compliant and in control.

  • Experienced MTD ITSA accountants with specialist knowledge

  • Local support in Sussex, Surrey, London and the South East

  • Proactive advice and transparent pricing — no hidden fees

  • Experts in MTD-compatible software, with a focus on Xero accounting

  • Helping you use cloud bookkeeping to stay compliant and run your business more efficiently

👉 Ready to prepare for MTD ITSA? Contact us today for a free consultation.

External Resources

For further information from HMRC and Xero, see:

Next Steps

MTD ITSA may feel daunting, but with the right support it can also be an opportunity to modernise your finances.

📞 Call us today or 📩 contact us online to discuss how we can prepare you for MTD ITSA with tailored support in Xero and other HMRC-compliant software.

 

Frequently Asked Questions

When does MTD ITSA start?
From April 2026 for sole traders and landlords with income over £50,000. From April 2027, the threshold lowers to £30,000. Partnerships are expected to follow later.

Who is affected?
Sole traders, landlords, and individuals with self-employment or rental income above the thresholds. Partnerships are not yet included but will be added in future.

Do I still need to file a Self-Assessment tax return?
Yes. Even though quarterly updates are required, a final declaration is still needed each year.

What software do I need?
You’ll need MTD-compatible accounting software such as Xero, QuickBooks, or FreeAgent. As Xero Gold Partners, we can set you up with the right digital tools.

How can Smart Accountants help me prepare?
We provide readiness reviews, software setup, quarterly submissions, and ongoing advice — plus local support across Sussex, Surrey, London, and the South East.

 

Related Blogs on Making Tax Digital for Income Tax

Days
Hours
Minutes
Seconds
Get MTD Ready Now