MTD for Income Tax: What Salford Taxpayers Need to Know Before the Deadline

By Ben Brierley • May 9, 2025 • Making Tax Digital • Salford • Swinton

Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) represents a major shift in how UK taxpayers manage their tax obligations. If you are based in Salford or Swinton and are self-employed, a landlord, or a sole trader, it is essential to understand how these changes will affect you.

What Is MTD for Income Tax?

Making Tax Digital (MTD) is an HMRC initiative designed to improve accuracy and efficiency in tax reporting. From April 2026, individuals earning over £50,000 annually must maintain digital records and submit quarterly income tax updates using compatible software. Those earning between £30,000 and £50,000 will join from April 2027.

Who Will Be Affected?

• Self-employed individuals
• Landlords with rental income
• Anyone earning over £50,000 annually (from April 2026)
• Individuals currently filing Self Assessment returns

Key Requirements of MTD for ITSA

1. Maintain digital records of income and expenses
2. Use HMRC-approved software for quarterly submissions
3. Submit an End of Period Statement (EOPS) and final declaration annually

Why Now Is the Time to Act

• Select suitable cloud-based accounting software
• Train yourself or staff in digital systems
• Adjust processes for quarterly reporting

How Cogency Can Help

• Eligibility assessment
• Software selection guidance
• Digital bookkeeping setup
• Quarterly submission management
• Ongoing tax advisory support

Key Deadlines and Preparation Tips

1. Check your income threshold
2. Choose HMRC-approved software (QuickBooks, Xero, FreeAgent)
3. Begin digital record-keeping now
4. Schedule quarterly accountant reviews
5. Prepare for annual final declaration

Potential Penalties for Non-Compliance

• 3% penalty after 15 days (VAT unpaid)
• Additional 3% after 30 days
• Daily penalty of 10% per annum from day 31
• £100 fixed fine for late Self Assessment filing
• 5% surcharge after 30 days of unpaid tax

Why Early Action Matters

• Ensure digital-ready records
• Avoid penalties
• Understand your true tax position

Conclusion

MTD for Income Tax is a significant change, but with proactive preparation and expert guidance, it can be managed smoothly. Cogency Chartered Accountants supports individuals and businesses across Swinton, Salford, and Greater Manchester to stay compliant and confident.