MTD ITSA Phase 1 Readiness Pack

What is the MTD ITSA Phase 1 Readiness Pack?

Making Tax Digital for Income Tax Self Assessment (MTD ITSA) Phase 1 begins in April 2026, requiring all landlords and self-employed individuals with income over £50,000 to maintain digital records and submit quarterly updates to HMRC using MTD-compatible software. Phase 2 extends this to those earning over £30,000 from April 2027. This readiness pack is the complete preparation toolkit — confirming whether you are in scope, recommending compatible software, providing a step-by-step digital transition guide, and generating client communications for accountants managing the changeover.

Whether you are a sole trader preparing your own records, a landlord with multiple rental properties, or an accountant managing hundreds of affected clients, this pack cuts through HMRC's complex guidance and gives you a clear, actionable path to compliance before the first quarterly deadline hits.

Who needs this?

• Self-employed sole traders with gross income over £50,000 (Phase 1) or £30,000 (Phase 2)
• Landlords with property income exceeding the relevant threshold
• Accountants and bookkeepers managing clients affected by MTD ITSA
• Tax advisers preparing clients for the quarterly reporting regime
• Small business owners who currently file paper Self Assessment returns
• Partnership members with qualifying income above the thresholds

What's included?

• MTD ITSA scope checker — enter your income sources and the tool confirms which phase applies and your first quarterly deadline
• Compatible software comparison matrix — side-by-side feature and pricing comparison of HMRC-recognised MTD ITSA software
• Digital record-keeping setup guide — step-by-step instructions for transitioning from paper/spreadsheets to compliant digital records
• Quarterly update calendar with automated reminders for each submission window
• Client communication templates for accountants — scope notification letters, engagement letter updates, and fee adjustment templates
• End of Period Statement (EOPS) preparation checklist
• Final Declaration walkthrough guide replacing the current Self Assessment return process
• Common exemptions and deferral checker — identifies if you qualify for any HMRC-approved delays

Key Benefits

• Confirm your exact MTD ITSA obligations in under 5 minutes — no more wading through HMRC's guidance pages
• Choose the right software first time — our comparison matrix covers all HMRC-recognised providers with real pricing and feature data
• Avoid the £100 initial penalty for late quarterly submissions by having your digital systems ready well before April 2026
• Accountants: save 10+ hours per affected client by using our batch communication templates and standardised onboarding workflow
• Understand the full quarterly cycle — from digital record-keeping through quarterly updates to the Final Declaration
• Identify exemptions or deferrals you may not know about, potentially delaying your compliance date

UK Regulatory Context

MTD ITSA is the next phase of HMRC's Making Tax Digital programme. Phase 1 (April 2026) applies to self-employed individuals and landlords with qualifying income over £50,000. Phase 2 (April 2027) extends to those with income over £30,000. Affected taxpayers must keep digital records using MTD-compatible software and submit quarterly updates to HMRC, replacing the current annual Self Assessment return with quarterly submissions plus an End of Period Statement and Final Declaration. HMRC has confirmed a points-based penalty regime: each late quarterly submission accrues a point, and reaching the threshold triggers a £200 penalty with escalating fines for continued non-compliance. The transition represents a fundamental change in how self-employed income is reported, and HMRC estimates 4.2 million taxpayers will be affected across both phases.

How it works

1. Run the scope checker with your income details to confirm which phase applies, your first quarterly deadline, and whether any exemptions are available
2. Review the software comparison matrix and select an HMRC-recognised MTD ITSA solution that fits your business needs and budget
3. Follow the digital record-keeping setup guide to migrate your existing records into your chosen software
4. Set up quarterly submission reminders using the calendar tool and complete a dry-run submission before your first live deadline
5. For accountants: deploy client communications using the batch template system and track client readiness from the management dashboard

Pricing

£49 one-time purchase — includes the scope checker, software comparison matrix, digital transition guide, quarterly calendar, client communication templates, EOPS checklist, and exemption checker. Updated automatically as HMRC publishes final MTD ITSA guidance.

⚠️ Legal disclaimer (FINANCE): This product is not financial, tax, investment, or AML advice and SummitBridge Horizon Ltd is not authorised by the FCA. Read the full disclaimer below or in our Terms of Service before purchase.