Income Tax Self Assessment (ITSA)

Making Tax Digital for Income Tax replaces the annual Self Assessment return for sole traders and landlords with quarterly updates sent from software and a Final Declaration at the end of the year. dynamik.app sends both from the records you already keep.

Who Needs MTD for Income Tax?

HMRC phase it in by gross income from self-employment and property combined:

Below the threshold you can still join voluntarily.

Connecting to HMRC

1. Go to Accounts > Tax & Compliance > HMRC Settings
2. Click Connect to HMRC
3. Sign in with your Government Gateway user ID and password
4. Authorise dynamik.app to view and submit on your behalf

One connection covers VAT and Income Tax. It lasts 18 months; the page tells you when it needs renewing.

Your Businesses

Each self-employment and each property business HMRC hold for you is listed on the Obligations page with its own set of periods. If the page says No Business Records Found, the business has not been signed up for MTD for Income Tax with HMRC yet — that is done with HMRC, not in dynamik.app.

Quarterly Updates

The standard quarters run from 6 April:

To send one:

1. Open HMRC Settings > Income Tax > Obligations
2. Pick the open period and click Submit update
3. Review the income and expense totals dynamik.app has built from your invoices, bills and expenses for the period
4. Click Submit to HMRC — the receipt is kept against the period

In-Year Calculation

At any point in the year, Calculation asks HMRC for an estimate of the Income Tax and National Insurance due so far, based on the updates sent. It is an estimate, not a bill.

Year End

After the fourth quarter, Year-end is where the annual figures are finished before the declaration: allowances, adjustments, accounting settings, the business source adjustable summary and any losses to bring forward or carry back.

Final Declaration

The Final Declaration replaces the Self Assessment tax return. It confirms your total taxable income for the year from all sources and is due by 31 January after the tax year. Once one has been submitted for a tax year, the page says so and will not let a second one go.