Self Employed (MTD)

Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) represents the most significant change to the UK tax system in a generation. Under this initiative, HMRC is requiring self-employed individuals and landlords to maintain digital records and submit quarterly summaries of their income and expenses, replacing the traditional annual Self Assessment tax return with a more frequent and transparent reporting process.

From April 2026, MTD for ITSA becomes mandatory for self-employed individuals and landlords with qualifying income exceeding £50,000. A year later, in April 2027, the threshold drops to include those earning over £30,000. HMRC has also signalled that these thresholds may be lowered further in subsequent years, potentially bringing even more sole traders and freelancers into scope.

If you are self-employed in Guildford, Woking, or anywhere across Surrey, it is essential to start preparing now. Early adoption gives you time to select the right software, adjust your record-keeping habits, and ensure a smooth transition well before the legal deadlines arrive. At 360 Accounts & Bookkeeping Ltd, we are already helping local businesses get MTD-ready, and we can do the same for you.

Our dedicated MTD compliance service takes the complexity out of quarterly digital reporting. We manage every stage of the process so you can carry on running your business without worrying about missed submissions or HMRC penalties. Here is what we handle on your behalf:

For those currently filing an annual Self Assessment return, the transition to MTD does not need to be disruptive. We manage the changeover from your existing process to quarterly digital reporting, ensuring nothing falls through the cracks. Many of our clients find that the move to more regular reporting actually gives them a clearer picture of their tax position throughout the year, reducing end-of-year surprises.

We understand that every self-employed business is different, which is why our MTD onboarding process is tailored to your circumstances. We begin with a thorough review of your current bookkeeping setup, help you choose the most suitable MTD-compatible software, and provide hands-on training so you feel confident using it. If you have existing records in spreadsheets or another system, we handle the data migration so nothing is lost in the transition.

Once you are up and running, our ongoing support includes quarterly submission reminders, a review of your figures before each filing, and regular check-in meetings to discuss your financial position. We proactively flag any issues -- such as unexpected changes in income or expenses -- so you are never caught off guard when your tax bill is calculated.

We work with self-employed clients right across the region, including Guildford, Woking, Godalming, Camberley, and Farnham. Whether you prefer to meet in person at our Guildford office, speak over the phone, or connect via video call, our flexible approach ensures you receive the same high level of service regardless of your location in Surrey.

Staying on top of the MTD timeline is critical to avoiding penalties. Here are the dates you need to be aware of:

We track all of these deadlines for you and ensure your submissions are filed well in advance, so you never accumulate penalty points or face unexpected fines.

Selecting the right MTD-compatible software is one of the most important decisions you will make as part of your preparation. HMRC maintains a list of recognised software providers, and we can guide you through the options to find the best fit for your business. The key considerations include whether you prefer a cloud-based solution -- accessible from any device with an internet connection -- or a desktop application installed on your computer.

Cloud-based software such as QuickBooks, Xero, and FreeAgent offers the advantage of automatic updates, real-time bank feed integration, and the ability to share data with your accountant instantly. Desktop software may suit those who prefer offline access or have specific workflow requirements. Whichever route you choose, the software must be able to record income and expenses digitally, submit quarterly updates to HMRC via their API, and produce end-of-period statements and final declarations.

We work closely with our preferred software partners and can often secure preferential rates for our clients. More importantly, we provide full setup support, including connecting your bank feeds, configuring your chart of accounts, and training you on day-to-day usage. Our goal is to ensure that your software works for you, not the other way around.