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Make every day more productive and profitable
Make every day more productive and profitable
Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) is an upcoming requirement from HMRC, aimed at modernizing the UK tax system. Starting in April 2026, individuals with an income over £50,000 from self-employment or property rental will need to:
MTD for ITSA introduces three key changes to the traditional income tax self-assessment process:
Instead of submitting a single, comprehensive annual tax return, you'll need to submit quarterly summary data to HMRC. These submissions must be done electronically using compliant software like Balance By Squeegee.
At the end of each tax year, you will need to submit an End of Period Statement (EOPS) to HMRC. This statement adjusts and confirms the accuracy of your quarterly summaries.
In addition to the EOPS, you will submit a final declaration to HMRC, detailing any additional income. This final step allows HMRC to confirm the total tax owed, which is payable by January 31 of the following tax year.
MTD for ITSA, especially when using Balance by Squeegee, will bring several benefits that can streamline your financial administration and help you focus more on your business:
With automated processes and digital records, managing your business admin becomes easier and more accurate, allowing for almost instant financial overviews.
Balance by Squeegee will ensure your data is secure with features like two-factor authentication (2FA) and data encryption, giving you peace of mind about the safety of your information.
Software will make it easy to collaborate with your accountant or clients by allowing instant sharing of information, streamlining the communication and review process.
As we approach the implementation of MTD for ITSA, using a robust, MTD-compliant software like Balance by Squeegee will not only ensure compliance with HMRC’s requirements but also simplify your financial management. Embrace the digital transformation with Balance by Squeegee and focus more on growing your business, knowing that your financial admin is in capable hands.