Making Tax Digital 2026 | Barton Accountancy

MTD ITSA 2026

MTD is here. We have you covered.

Making Tax Digital for Income Tax Self Assessment (MTD ITSA) went live on 6 April 2026. If you're self-employed, a landlord, or both, and your combined annual income is over £50,000, you are now required by law to keep digital records and submit quarterly updates to HMRC through compatible software.

If that sounds like a lot, it is. Four quarterly submissions plus an end-of-year final declaration. Digital record-keeping in HMRC-approved software. Fines for missing deadlines. But you don't have to deal with any of it yourself — we handle the lot as part of your fixed monthly fee.

Barton is an ICAEW Chartered firm and a Xero Bronze Partner. We've been preparing clients for MTD ITSA for months. If you haven't got yourself set up yet, we can get you fully compliant within a week.

What we handle

Full MTD ITSA service.

Everything is included in your fixed monthly fee. No extras, no surprises.

Xero setup

We set up Xero as your MTD-compliant digital record. Bank feeds, invoices, expenses — all in one place.

Quarterly updates

Four times a year we submit your quarterly update to HMRC. You never touch HMRC software directly.

End-of-period statement

At year-end we submit the final declaration combining all your income sources.

Expense capture

Hubdoc or Dext to snap receipts on your phone. Zero shoeboxes, zero spreadsheets.

Property income handling

Full MTD compliance for landlords with rental income — Section 24 and all.

Penalty protection

Deadline tracking, reminder emails, and the submissions actually handled before the deadline.

Sound familiar?

Most businesses don't have an accountant.
They have a filing service.

If any of these ring true, you're not getting what you should be.

01

You only hear from them at year-end

No check-ins, no planning, no conversation. Just a bill and a set of accounts you don't fully understand.

02

You're never sure where you stand

Your numbers are months out of date. You're making decisions based on gut feel, not real figures.

03

Surprise invoices keep landing

An email here, a phone call there — and suddenly your bill is twice what you expected. No one told you.

Common questions

Things people ask us.

Do I have to use MTD?

If you're a sole trader, self-employed, or a landlord, MTD ITSA is mandatory from 6 April 2026 if your combined qualifying income from self-employment and property exceeded £50,000 in the 2024/25 tax year (the test year HMRC uses). The threshold drops to £30,000 from April 2027 (based on 2025/26 income). Below £30,000 you're exempt until further notice.

What happens if I miss a quarterly deadline?

HMRC uses a points-based penalty system. You get one point per missed deadline. Four points in a year triggers a £200 penalty. It's not the catastrophe some people fear, but points accumulate across four years so it's worth staying on top of it.

Can I just use a spreadsheet?

No. MTD ITSA requires digital records in HMRC-approved software with a digital link to HMRC. Spreadsheets alone are not compliant. You'd need 'bridging software' to connect them, which most people find more fiddly than just using Xero or QuickBooks directly.

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