Introduction
Are you a sole trader or landlord in the UK? If so, the government’s new Making Tax Digital for Self Assessment (MTD for ITSA) initiative from HMRC will soon affect how you manage and submit your taxes. In this guide, Cloudledger Ltd explains what MTD means for you, what changes you need to make, and how our expert remote
accounting services can help you stay compliant and stress-free.
What Is Making Tax Digital for Self-Assessment?
Making Tax Digital (MTD) is a government programme designed to make tax administration more effective, efficient, and easier for taxpayers through digitalisation. For Self Assessment, this means:
- Keeping digital records of your income and expenses
- Using compatible software to send quarterly updates to HMRC
- Filing your annual Self-Assessment tax return digitally
Who is affected?
From April 2026, all sole traders and landlords with business or property income over £50,000 must follow MTD for ITSA rules. Those earning over £30,000 will join in April 2027.
What Do You Need to Do?
To comply with Making Tax Digital for Self Assessment, you will need to:
Keep Digital Records:
Use accounting software (like QuickBooks, Xero, or FreeAgent) to record all business and property income and expenses.
Submit Quarterly Updates:
Every three months, you’ll need to send a summary of your income and expenses to HMRC using MTD-compatible software.
Finalise Your Tax Year:
At the end of the tax year, submit a final declaration to HMRC and pay any tax due.
Stay Organised:
Ensure your records are accurate and up-to-date to avoid penalties.
How Cloudledger Ltd Can Help with MTD for ITSA
At Cloudledger Ltd, we specialise in helping self-employed professionals and landlords adapt to digital tax requirements. Here’s how we support you:
Personalised Software Setup:
We help you choose and set up the right MTD-compatible software for your needs.
Ongoing Bookkeeping Support:
Our remote team manages your digital records, ensuring accuracy and compliance.
Quarterly & Annual Filing:
We handle all submissions to HMRC, so you never miss a deadline.
Expert Guidance:
Get clear, jargon-free advice on all aspects of Making Tax Digital for Self Assessment.
Why Act Now?
Switching to digital accounting early means:
- Less stress when MTD rules become mandatory
- Fewer errors and missed deadlines
- More time to focus on growing your business or managing your properties
“Cloudledger Ltd made my transition to digital accounting simple and hassle-free. I feel confident about staying compliant with HMRC.”
— James Carter, Owner, Craft & Co.
Frequently Asked Questions
Do I need to register for MTD for ITSA now?
If your income is above £50,000, you’ll need to be ready by April 2026. It’s a good idea to start preparing now.
Can Cloudledger Ltd manage the whole process for me?
Yes! We offer fully managed remote accounting and tax services, including MTD compliance.
What software do you recommend?
We support QuickBooks, Xero, and FreeAgent—each is fully compatible with MTD for ITSA.
Conclusion
Making Tax Digital for Self Assessment is a big change, but with the right support, it doesn’t have to be overwhelming. Cloudledger Ltd is here to help you every step of the way, from software setup to ongoing compliance.
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