Making Tax Digital for Income Tax
Self Assessment Compliance

Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) will change how many UK sole traders and landlords report income to HMRC from April 2026. Qualifying taxpayers must move from annual Self-Assessment to quarterly digital updates. Businesses that rely on spreadsheets or year-end bookkeeping may need to reorganise their records and systems before the first submission deadline. Late or incorrect submissions can trigger HMRC penalties.

Legend Fusions supports clients in determining whether MTD for ITSA applies to them, setting up fully compliant digital systems, and managing a smooth transition to quarterly reporting.

Why Is Making Tax Digital for Income Tax Being Introduced?

HM Revenue & Customs (HMRC) is moving Income Tax reporting to a digital framework under Making Tax Digital for Income Tax (MTD for ITSA). The system replaces year-end reporting with digital records and updates submitted throughout the year.

Key
Benefits:

How MTD for ITSA Works?

Making Tax Digital for Income Tax (MTD for ITSA) changes how eligible taxpayers record and report their income to HMRC. Instead of relying mainly on an annual Self Assessment return, taxpayers must keep digital records and provide updates throughout the year. The process is designed to make income reporting more timely, accurate and transparent.

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Common Making Tax Digital Situations

UK Sole Traders

UK Landlords

Who Received an HMRC Letter

Businesses Close to the Threshold

Our Making Tax Digital Compliance Process

Our Making Tax Digital compliance process helps businesses understand their MTD obligations, maintain accurate digital records, and meet HMRC reporting requirements. We assess your circumstances, identify the relevant MTD requirements, and provide practical guidance to support timely and accurate submissions.

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Frequently
Asked Questions

Here’s the Answer to Some Frequently
Asked Questions.

Business continuity planning is the process of preparing a business to continue operations during and after unexpected disruptions.

It helps businesses reduce risks, protect operations, and recover quickly from unexpected challenges.

A continuity plan typically includes risk assessment, recovery procedures, crisis response strategies, and operational protection measures.

SMEs, growing businesses, established companies, and organisations with critical operations can benefit from continuity planning.

A business continuity plan is created through business assessment, risk identification, strategy development, implementation, and regular reviews.

Business continuity focuses on maintaining operations, while disaster recovery focuses on restoring systems and services after disruption.

A continuity plan should be reviewed regularly to ensure it remains effective as business needs and risks change.

It helps SMEs prepare for risks, protect resources, and maintain stability during unexpected situations.

It can address operational failures, cyber threats, supply issues, staff shortages, and other business disruptions.

Legend Fusions provides tailored continuity strategies to help businesses manage risks and build long-term resilience.

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