MTD for Income Tax

MTD for Income Tax Made Simple for Creatives

From April 2026, if you’re a sole trader or landlord earning over £50,000, you must:

  • Keep digital records
  • Use approved MTD software
  • Submit updates every quarter

What you need to know:

Making Tax Digital for Income Tax is here — and if you’re a self-employed creative or freelancer earning over £50k, you’ll soon need to file digitally, quarterly, and keep your records in HMRC-approved software.

The problem? Most creatives aren’t sure where to start.

 

We specialise in supporting creative businesses through MTD for Income Tax, helping you get fully set up, compliant, and confident — without the stress or jargon.

  • Full setup for MTD for Income Tax (ITSA)
  • Software that’s creative-friendly (we’ll recommend the best fit)
  • Quarterly filing support & deadline reminders
  • Full “done-for-you” service
  • Help understanding what HMRC actually expects

Approach
Pros
Cons

Internal Reviews

Low cost (£0-£5k/year, staff time); quick (weekly checks); strong adherence to UK tax rules, value-added tax (VAT), and financial reporting standards (FRS 102)using in-house knowledge.

Limited  objectivity; time-intensive for complex media buys; potential bias in client  fund tracking.

External Audits by Certified Accountants

High adherence to financial reporting standards (FRS 102), UK tax rules, and value-added tax (VAT) directives (e.g., quarterly filings); thorough for trust accounts.

High cost (£10k-£50k annually); lengthy (months per cycle); disrupts operations.

Automated Compliance Software (e.g., Xero or Sage)

Affordable (£500-£5k/year); fast real-time monitoring of value-added tax (VAT) and UK tax rules compliance; integrates financial reporting standards (FRS 102) reporting.

Initial set-up time (1-2 weeks); relies on accurate data input; less nuanced for bespoke agency finances.