Helping Surrey and Sussex businesses stay compliant, timely, and stress-free under MTD ITSA
Making Tax Digital in Surrey is fast approaching — and for self-employed individuals and landlords, that means new rules and fresh opportunities. From April 2026, anyone earning over £50,000 will need to keep digital records in Xero and submit quarterly updates to HMRC.
From April 2027, the same process will apply to those earning over £30,000.
As an ACCA-accredited accounting firm based in Dorking, Smart Accountants brings both local expertise and professional assurance to every client. We help businesses across Surrey, Sussex, Tadworth, and surrounding areas prepare for Making Tax Digital for Income Tax Self-Assessment (MTD ITSA) — ensuring every update is accurate, timely, and penalty-free.
What Is MTD ITSA and Who Does It Affect?
MTD ITSA is part of HMRC’s move to a fully digital tax system. It replaces the annual Self-Assessment return with quarterly digital submissions.
You’ll need to comply if you are:
- Self-employed earning over £50,000 from April 2026
- Self-employed or a landlord earning £30,000–£50,000 from April 2027
That means:
- Keeping business and property income records digitally in Xero
- Sending quarterly updates to HMRC
- Submitting a final declaration each year
For full details, visit HMRC’s information page.
What Level of Support Do You Need?
1. Compliance Only — You Record, We Review and File
You’ll maintain your Xero records; our accountants will review your work, ensure it’s compliant, and file all quarterly updates and your year-end declaration timely and accurately.
Includes:
- Xero setup and support
- Quarterly review and compliance checks
- Submission to HMRC by our qualified accountants
✅ Ideal for: Sole traders or landlords who like to stay hands-on
✅ Value: Accuracy, oversight, and timely submissions without the full-service cost
2. Full Service — We Handle Everything for You
We take full responsibility for your newprocess — bookkeeping, reconciliations, reviews, and submissions.
Includes:
- Complete bookkeeping in Xero
- Quarterly and annual submissions filed on time
- Ongoing communication and reminders
✅ Ideal for: Busy landlords and business owners
✅ Value: Fully managed, stress-free, and 100% timely
3. Advisory — Beyond Compliance
We turn your quarterly figures into useful insights to improve profit, cash flow, and tax planning.
Includes:
- Everything in Full Service
- Forecasting and performance analysis
- Quarterly insight meetings
✅ Ideal for: Growth-focused businesses
✅ Value: Clarity, planning, and smarter decisions using real-time data
Compare Our MTD ITSA Service Levels
| Service Level | Who It’s For | Key Benefits | Included Services |
|---|---|---|---|
| Compliance Only | Sole traders & landlords | HMRC compliance, expert review, timely filing | Xero setup, quarterly reviews, HMRC submissions |
| Full Service | Business owners & landlords | Stress-free, accurate, on-time compliance | Bookkeeping, reconciliations, submissions, year-end |
| Advisory | Growing businesses | Strategic insights, forecasts, tax planning | Performance reports, advisory meetings |
Why Prepare for MTD Now?
Setup takes time — especially if you’ve used spreadsheets.
Starting now helps you:
- Integrate Xero smoothly
- Avoid late-filing penalties
- Gain real-time visibility of income and expenses
- Stay ahead of deadlines
We’re already helping clients in Dorking, Tadworth, and surrounding areas across Surrey and Sussex set up and test digital submissions.
Read our previous MTD 2026 blog for more on who’s affected.
HMRC Penalties for Late or Incorrect Submissions
Under HMRC’s points-based penalty system:
- Each missed quarterly deadline earns a penalty point.
- Four points = a £200 fine.
- Each subsequent missed deadline adds another £200 fine.
- Points only reset after timely compliance for 12 months.
See HMRC’s penalties page for full details.
At Smart Accountants, all your filings are reviewed and submitted on time, so you never risk late penalties.
Our Proven Process for Success
- Readiness Review – Assess your systems and income sources
- Digital Setup in Xero – Configure and link to HMRC
- Quarterly Review & Filing – We review, correct, and submit on time
- Advisory Insights (optional) – Forecasts and performance reviews
💬 Every submission is checked and filed promptly by our qualified team.
FAQs
1. Do I need an accountant for MTD ITSA?
Yes — HMRC expects accurate submissions. Smart Accountants review and file all updates timely to ensure compliance.
2. When will MTD ITSA apply to me?
From April 2026 if income exceeds £50,000; from April 2027 if between £30,000 and £50,000.
3. Can I still use spreadsheets?
No — HMRC requires recognised software. We use Xero exclusively for MTD compliance.
4. What are the penalties for late filing?
A £200 fine applies after four missed deadlines, with ongoing fines for repeated delays. Read more on GOV.UK.
5. Why does MTD ITSA use quarterly reporting?
To give both HMRC and taxpayers real-time insight and reduce end-of-year surprises.
6. Why use Xero?
Xero connects directly to HMRC, automates updates, and provides live financial data. Learn more on Xero’s MTD hub.
7. How does MTD ITSA affect landlords?
Landlords must digitally record property income and expenses, submit quarterly via Xero, and complete an annual declaration.
8. How can I prepare now?
Move to Xero, separate business and personal transactions, and work with Smart Accountants to test submissions.
9. Where can I find reliable updates?
Visit the ICAEW MTD resource hub or contact us directly for tailored support.
Ready to Get MTD-Ready?
At Smart Accountants, we help Dorking, Tadworth, and Surrey/Sussex businesses transition smoothly, accurately, efficiently, and on time.
📞 Book your free MTD Readiness Consultation
Let’s make digital tax simple, timely, and stress-free.