Accountants in Wimbledon: Understand MTD ITSA Rules Before 2026

Accountants in Wimbledon helping a small business owner with MTD ITSA

As trusted accountants in Wimbledon, we know that from April 2026, Making Tax Digital for Income Tax Self Assessment (MTD ITSA) will apply to many sole traders and landlords. Understanding the rules now is essential to avoid future penalties and confusion.

At Southside Accountants, we break down what “digital records” actually mean, who is affected, what happens if you ignore HMRC’s letter, and how to apply for an exemption if digital filing is not practical.

✔️ Who Must Comply? A Guide from Accountants in Wimbledon

If your total income from self-employment or rental property is:

• Over £50,000 – MTD ITSA applies from April 2026
• £30,000 to £50,000 – You join in April 2027

If you earn under £30,000, HMRC is still reviewing when you will be included.

This applies to sole traders and landlords, not limited companies or those with only PAYE or pension income.

Accountants in Wimbledon Explain What Digital Records Really Mean

HMRC expects you to keep and submit digital records using MTD-compliant software or spreadsheets linked with bridging software.

✅ You must record:

• Date
• Amount
• Category (e.g., rent, travel, supplies)
• Description

You do not need to upload receipts to HMRC, but you must retain them—either digitally or in physical form. Most modern software lets you scan and attach them for convenience.

Limited Companies and Non-Business Individuals

MTD ITSA does not apply to limited companies or individuals filing only for pensions or PAYE. However, if your company is VAT-registered, you likely fall under MTD for VAT.

Corporation Tax will also move to MTD in future years—pilot testing is ongoing.

What If HMRC Tells You You’re In—and You Ignore It?

If HMRC sends a letter confirming that you’re now part of MTD ITSA, then:

• Your account is moved to the MTD system
• You must file quarterly digital updates and an annual declaration
• Submitting a traditional tax return could lead to rejection or penalties

You cannot opt out by ignoring HMRC. You will stay on the MTD system unless granted a formal exemption.

Exemptions for the Digitally Excluded

HMRC allows digital exclusion exemptions if digital filing is genuinely impractical. You may qualify if you are:

• Elderly and unable to use digital tools
• Have a disability or long-term condition
• Live in an area with poor internet access
• Hold religious beliefs against using technology

To apply, contact HMRC in writing or by phone, explaining your situation. You may need to provide supporting evidence.

‍ How Accountants in Wimbledon Can Help

At Southside Accountants, we help you stay compliant by offering:

• MTD-compliant bookkeeping software setup
• Quarterly updates and final tax submissions
• Exemption application support if needed

Whether you are in Wimbledon SW19, Streatham SW16, or anywhere in the UK, we make digital tax filing easy.

Helpful Resources

• • Read the official HMRC MTD for ITSA guidance
  • Browse our tax advice articles