Checklists
Making Tax Digital for Income Tax (MTD ITSA) – Self-Employment Checklist
Preview Checklist
Making Tax Digital for Income Tax (MTD ITSA) — Self-Employment Checklist
1. Check if you are required to sign up
☐Confirm you are registered for Self-Assessment. ☐Confirm you have self-employment income (sole trader). ☐Check your gross self-employment income (before expenses):-
- Over £50,000 → Start from 6 April 2026.
- Over £30,000 → Start from 6 April 2027.
2. Calculate your qualifying income
☐Include:-
- Gross self-employment turnover (income before expenses).
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- Income from employment (PAYE).
- Partnership income (unless disguised management fees).
- Dividends, savings interest, or rental income (separate).
3. Check your start date
☐If £50,001+ gross self-employment income (based on 2024–2025 tax return) → Start from 6 April 2026. ☐If £30,001–£50,000 (based on 2025–2026 tax return) → Start from 6 April 2027. ☐Await HMRC notification letter after submitting your return.4. Get compatible software
☐Choose software that can:-
- Create, store, and correct digital records.
- Send quarterly updates to HMRC.
- Submit your final tax return.
5. Sign up for Making Tax Digital for Income Tax
☐Confirm your:-
- Personal details with HMRC are up to date.
- No outstanding tax liabilities.
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- Business name (name used on invoices).
- Business start date.
- Accounting method (cash basis or traditional).
- Type of trade.
6. Create and maintain digital records
☐Record digital entries for:-
- Income (sales, fees, takings).
- Expenses (stock, travel, office costs, professional fees, etc.).
7. Send quarterly updates
☐Quarterly reporting deadlines:-
- 6 April–5 July → Submit by 7 August.
- 6 April–5 October → Submit by 7 November.
- 6 April–5 January → Submit by 7 February.
- 6 April–5 April → Submit by 7 May.
8. Adjust at year-end
☐After sending your 4th update:-
- Adjust for disallowable expenses (personal elements of costs).
- Adjust for accounting entries (prepayments, accruals).
- Make 1–5 April adjustment if using calendar periods.
- Claim eligible tax reliefs (e.g., capital allowances, trading allowance).
9. Finalise and submit your tax return
☐Add other income sources (employment, savings, dividends, rental) into your software. ☐Submit your final Self-Assessment tax return via MTD-compatible software. ☐Submit by 31 January following the end of the tax year.10. Ongoing compliance
- ☐Keep all digital records for at least 5 years after the 31 January submission deadline.
- ☐Pay Self-Assessment tax on time (including payments on account if applicable).
- ☐Notify HMRC online if:
- You start or cease a business.
- Your business changes.
⭐ Special Situations for Self-Employed:
Situation | What to Do |
Turnover under £90,000 | Simpler categorisation allowed (income vs expenses only). |
New business started mid-year | |
Cash basis | Record income when received and expenses when paid. |
Traditional accounting | Apply accruals and prepayments. |
📌 Summary Flow for Self-Employed
- Check if you meet the MTD threshold.
- Calculate gross self-employment income.
- Arrange compatible software.
- Sign up for MTD.
- Keep ongoing digital records.
- Send quarterly updates.
- Adjust at year-end.
- Submit final tax return.
- Keep records and pay on time.
- Update HMRC if circumstances change.
Companies House Identity Verification Service Engagement Letter Template
Craft engagement letters tailored to your Identity Verification services as an Authorised Corporate Service Provider. Choose from our ready-made template or sign up to FigsFlow to unlock features that make your life easier.
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Frequently Asked Questions
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Is this engagement letter template compliant with the Economic Crime (Transparency and Enforcement) Act 2023?
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Can I customise this engagement letter for different types of clients or services?
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What happens if my client’s application is rejected?
The template includes clauses clarifying that the service provider is not liable for application outcomes and that fees are non-refundable, in line with expectations up front.
Does FigsFlow store client identity information?
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