Step 1 — Confirm you're affected

Check whether your sole-trade and/or property income crosses the threshold HMRC has published for your phase. Below the threshold (for now), you remain on standard Self Assessment.

Step 2 — Choose MTD-compatible software

You need software on HMRC's recognised list. The choice matters less than just picking one and using it. IGI clients get this included.

  • Bank feed connection
  • Receipt capture (snap with phone)
  • Customer / supplier records
  • Quarterly submission to HMRC

Step 3 — Move to digital records

Whatever you keep records in today, move to the software now. Don't wait. Spreadsheets, paper, accountant's annual catch-up — none of them survive MTD unscathed.

Step 4 — Sign up for MTD-ITSA when prompted

HMRC opens sign-up windows. Your accountant can submit on your behalf, or you can do it through your HMRC account. Don't sign up before you're ready to file digitally — once you're in, you're in.

Step 5 — Build a quarterly rhythm

Four short submissions a year, each summarising the previous quarter's income and expenses. The submission is roughly a totals snapshot, not the full tax return. The work is in keeping the books current — the submission itself is quick.

Treat each quarter as a mini year-end

Reconcile bank, categorise transactions, capture missing receipts, submit. With proper bookkeeping it takes an hour or two. Without, it can take a weekend.

Step 6 — End-of-period statement & final declaration

At year-end, you confirm the figures (this is the "end-of-period statement") and add anything else for the full picture (the "final declaration") — like other income sources outside the trade or rental. Your tax bill is calculated from that and paid through the same Self Assessment cycle.

Printable MTD checklist

  1. Confirm your qualifying income vs the threshold
  2. Choose MTD-compatible software
  3. Connect bank feed and set up receipt capture
  4. Reconcile a clean opening balance
  5. Sign up for MTD-ITSA when prompted by HMRC
  6. Set quarterly reminders
  7. Submit each quarter on time
  8. Finalise at year-end and pay through Self Assessment