MTD for Income Tax Guidance & Advice

Explore our guides outlining everything you need to know about Making Tax Digital for Income Tax Self Assessment (MTD for ITSA).

Making Tax Digital for Income Tax Explained

  • How self assessment tax returns are changing

    From 6 April 2024, MTD for ITSA will change the way the self-employed and landlords do their self assessment for income tax. Here’s how.

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  • MTD for ITSA: understanding quarterly updates

    Under MTD for ITSA rules, landlords and the self-employed must provide quarterly updates to HMRC. Here’s what you need to know.

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  • Making Tax Digital for the self-employed

    We explore everything sole traders and the self-employed need to know about HMRC’s Making Tax Digital for ITSA initiative.

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Preparing your clients & practice for ITSA

Read our guide outlining three steps you can take to prepare your clients and practice for MTD for Income Tax.

View our guide to preparing for ITSA
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Making Tax Digital Guides for Landlords

Landlords earning above £10,000 a year from business and property will need to sign up to MTD for ITSA from 6 April 2024.

Understanding MTD for landlords

Read our FAQs exploring what Making Tax Digital means for landlords in practical terms.

View our MTD for landlords FAQs

A quick guide to MTD for landlords

This short guide outlines the key points landlords need to bear in mind when preparing for MTD for ITSA.

View our MTD for landlords guide

An in-depth guide to MTD for landlords

This in-depth guide has been written to help landlords understand how to comply with MTD for ITSA.

Download the complete guide

A complete guide to MTD for ITSA

Our MTD for Income Tax guidance covers everything sole traders and landlords need to know about the new legislation.

A guide to MTD for ITSA
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I love the fact that Xero is thinking ahead and there is often a solution to these things quite a long time before it’s legally required. Being ahead of the game just takes a lot of the stress out of the whole change.

David Munro, MD, Munro & Partners

Hear how our partners are preparing for ITSA

Accountants and bookkeepers using Xero share their stories on why it’s vital to start preparing for MTD for ITSA early.

Hear from our partners
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Xero and MTD for ITSA

We’re testing our MTD for ITSA solution to make sure it meets the needs of advisors and businesses navigating the new legislation.

Learn about our ITSA beta programme
Making Tax Digital Resources for Your Clients

Your MTD for ITSA questions answered

Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) is part of the government’s plans to digitalise the UK tax system. MTD for Income Tax will impact the way sole traders and landlords with a total business or property income above £10,000 per year manage their tax obligations.

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All self-employed people and landlords with a total income (from business or property) above £10,000 will need to follow MTD rules for ITSA from 6 April 2024. Instead of using HMRC’s website to file returns, you’ll need to keep digital records and use compatible software.

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From 6 April 2024, landlords earning above £10,000 annually will need to change the way they record income and expenses under Making Tax Digital for Income Tax Self Assessment rules. They will also need to change the way they submit tax returns.

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In the space of one tax year, you’ll need to send HMRC four quarterly updates using your MTD-compatible software. You’ll also need to send an ‘End of Period Statement’ at the end of the fourth quarter and a ‘Final Declaration’, by January 31st. This replaces the current annual self-assessment.

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At Xero, we’re building an MTD for ITSA solution which we are testing with select customers from April 2022, as part of HMRC’s pilot. This is called our ‘MTD for ITSA beta programme’.

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