Making Tax Digital (MTD)
Made Simple with TIK-TAX

Making Tax Digital (MTD) is changing the way individuals and businesses manage their tax. For many, the process can seem confusing and overwhelming, but that’s where TIK-TAX comes in. We handle everything for you, from registering with HMRC to submitting your quarterly updates, ensuring you stay compliant while saving time and stress. Whether you are new to MTD or an existing TIK-TAX client, we make digital tax simple, seamless and stress-free.

‍

‍

What is Making Tax Digital for ITSA?

‍

MTD for ITSA (Income Tax Self Assessment) is a government initiative requiring self-employed individuals and landlords to maintain digital records and submit quarterly updates to HMRC using compatible software. Instead of filing one annual Self Assessment, you will now provide updates every three months through approved digital tools.

‍

This approach aims to make tax administration more efficient, accurate and transparent. With TIK-TAX, you do not need to worry about the technical side because we manage the software setup, record keeping and submissions for you.

‍

‍

Who Must Comply and When?

‍

The rollout of MTD for ITSA is being introduced gradually, depending on your total qualifying income from self-employment and property.

‍

From April 2026: Mandatory for those earning over £50,000.

‍

From April 2027: Mandatory for those earning over £30,000.

‍

From April 2028: Expected to apply to those earning over £20,000.

‍

If your combined self-employed and property income exceeds these thresholds, you will need to sign up for MTD and use digital software for your records and submissions.

‍

TIK-TAX can help you check your eligibility, calculate your qualifying income and ensure you are registered on time.

‍

‍

Calculating Your Qualifying Income

‍

Your qualifying income is your total gross income before expenses from all your self-employment and property sources. If your business accounts for less than a full year, HMRC will annualise your income to assess whether you meet the threshold.

‍

If this sounds complicated, do not worry. TIK-TAX will calculate this for you and guide you through every step.

‍

‍

Core MTD Requirements

‍

To comply with MTD for ITSA, you must:

‍

Use compatible software: This software must connect directly with HMRC systems. TIK-TAX uses HMRC-approved tools to ensure everything runs smoothly.

‍

Keep digital records: All income and expenses for your self-employment and property must be stored digitally.

‍

Submit quarterly updates: You will send summaries of your income and expenditure to HMRC four times a year.

‍

Make a Final Declaration: After the tax year ends, you will confirm your total income, deductions and tax owed by the 31 January deadline.

‍

TIK-TAX manages all these stages for you, from setup and submissions to final declarations.

‍

‍

MTD Deadlines You Should Know

‍

Quarterly submissions are due:

‍

Quarter 1 (April–July): 7 August

‍

Quarter 2 (July–October): 7 November

‍

Quarter 3 (October–January): 7 February

‍

Quarter 4 (January–April): 7 May

‍

Missing these deadlines can lead to penalties from HMRC. By partnering with TIK-TAX, you will never miss an update again.

‍

‍

Who is Exempt from MTD for ITSA?

‍

Some individuals and businesses are exempt from MTD, including:

‍

Those who are digitally excluded due to age, disability or location

Individuals with income below the relevant threshold

Certain groups such as foster carers or those without a National Insurance number

‍

TIK-TAX can help you determine whether you qualify for an exemption and, if so, ensure your current tax process remains compliant.

‍

‍

How to Prepare for Making Tax Digital

‍

The key to staying ahead is preparation. Here’s how to get started:

‍

1. Check if you’re in scope: Review your gross income for the 2024/2025 tax year.

‍

2. Select your software: Choose an HMRC-compatible digital platform. TIK-TAX can recommend and set this up for you.

‍

3. Start digital record keeping: Begin tracking income and expenses digitally to familiarise yourself with the process before it becomes mandatory.

‍

The good news is that TIK-TAX can handle every step for you.

‍

‍

Let TIK-TAX Handle It All

‍

Making Tax Digital does not have to be complicated. Whether you are a self-employed tradesperson, landlord or small business owner, TIK-TAX will manage everything for you, from sign-up and software setup to quarterly submissions and final declarations.

‍

If you are new to TIK-TAX, get in touch today and we will set up your MTD account.

If you are an existing client, send us a WhatsApp message and we will sort it for you right away.

‍

Stay compliant, save time and stress less with TIK-TAX, your partner for Making Tax Digital.