Making Tax Digital: When Will You Need to Join?
Off with their heads - but first, their taxes!
Alice in Numberland
6/1/20253 min read
Making Tax Digital: When Will You Need to Join?
Written by Alice in Numberland
At Alice in Numberland, we know that Making Tax Digital for Income Tax Self Assessment (MTD ITSA) can feel like falling down the rabbit hole—especially when you’re trying to figure out when you need to join. Let’s gather our teacups (and maybe the Mad Hatter too!) and explore the key trigger points and timelines with a sprinkle of whimsy to elevate your MTD game.
Meet Our Clients
What is MTD ITSA?
MTD ITSA means:
Keeping digital records of all your ins and outs—no more scribbling on napkins at the Mad Hatter’s tea party!
Submitting quarterly updates to HMRC—like clockwork, but with a little less “off with their heads” drama.
Sending a final declaration each year—your official “it’s a wrap” moment.
In short, it’s time to elevate your MTD game and embrace the digital future!
When Do You Need to Join?
HMRC is rolling out MTD ITSA in phases, based on your gross annual turnover (before expenses):
(Source: HMRC Guidance)
How Does This Affect Our Clients?
What this means:
J. Digs & Daughter and Handy Andy can enjoy their tea party a little longer—MTD starts for them in April 2027.
Bits & Bobs and Brick Buddy Ltd better check their pocket watches—MTD is coming their way in April 2026!
Key Dates to Remember
Once you’re in MTD ITSA, quarterly updates will arrive faster than the White Rabbit’s pocket watch:
Don’t forget: final declarations are due 31 January after the tax year ends—don’t be late, or the Mad Hatter might just ask you to explain yourself!
(Source: HMRC Guidance)
Handy Hints from Alice in Numberland
Watch your turnover—it’s the key that unlocks the MTD ITSA door.
Don’t wait until the last tick of the clock—start exploring cloud accounting software now. QuickBooks and FreeAgent (which can be free with a Mettle bank account) are both MTD ITSA-compatible.
CIS Clients, Take Note!—If you’re like Brick Buddy Ltd, remember that you still need to record your income and CIS deductions digitally, and submit quarterly.
Budget for the future—think around £6-15/month for software, plus any bookkeeping help.
Call in the experts—at Alice in Numberland, we’re your helpful White Rabbits—guiding you to the right software and ensuring you stay on HMRC’s good side.
Let’s Elevate Your MTD Game Together!
At Alice in Numberland, we’re here to help you navigate MTD ITSA—no disappearing Cheshire Cats or flamingo croquet here, just real help for real businesses. Whether you’re as small as J. Digs & Daughter or growing like Brick Buddy Ltd, we’re ready to guide you down the digital rabbit hole (minus the madness).
📞 01287 750999
✉️ enquiries@aliceinnumberland.co.uk
🌐 www.aliceinnumberland.co.uk
This post is for general guidance only and is based on HMRC guidance as of June 2025. For tailored advice, contact us directly—no potions required!
References:
