Making Tax Digital (MTD) for Income Tax
Making Tax Digital (MTD) is HMRC’s phased rollout requiring sole traders and landlords to keep digital records and submit income and expenses quarterly using MTD-compliant software.
This page outlines how Childminder Accountancy Services Ltd is preparing for MTD and supporting clients through the transition in line with HMRC guidance.
Who Will Be Affected and When?
MTD ITSA is being introduced in stages:
- April 2026: For individuals with total gross income over £50,000
- April 2027: For those with income between £30,000 and £50,000
- April 2028 (expected): For those with income between £20,000 and £30,000 (awaiting formal legislation)
Income includes the combined gross total from self-employment and property.
What Will Be Required?
Individuals within scope must:
- Keep digital records
- Use MTD-compatible software
- Submit quarterly updates to HMRC
- File a year-end final declaration (in addition to the existing Self Assessment return, which remains in place under current rules)
Our Approach
We are committed to early adoption and full compliance.
Childminder Accountancy Services Ltd is already enrolled in the HMRC MTD for ITSA beta pilot.
This allows us to:
- Test and submit quarterly updates under live MTD conditions
- Provide feedback to HMRC and stay ahead of upcoming requirements
- Prepare clients well in advance of their mandated start date
We are:
- Reviewing all clients for threshold relevance
- Migrating clients to MTD-compliant systems
- Managing quarterly submissions where required
- Monitoring HMRC updates closely
Software Used
We use QuickBooks, FreeAgent, and other HMRC-recognised tools to maintain digital records and file MTD submissions.
Clients are supported throughout the setup and compliance process.
Compliance Statement
This page demonstrates our proactive engagement with HMRC’s MTD rollout and documents the steps we are taking to ensure all relevant clients will be fully compliant by their mandated start dates.
Last reviewed: July 2025