Getting Started with MTD ITSA for Accountants & Bookkeepers

Dext’s new solution for MTD ITSA enables you and your clients to be ready for the upcoming changes to reporting earnings that HMRC will require for individuals with a business and/or property that has a gross total income of more than £10,000.

You can use the new MTD for ITSA section for free until the 30th of June 2023, after which a subscription fee will apply.

Sign up for our on demand product training for Dext Prepare’s solution for MTD ITSA here.

What is Dext Prepare for MTD ITSA?

MTD ITSA is a new way for self employed businesses and landlords to report earnings to HMRC. 

From April 2026, if a business and/or property has a gross total of £10,000 or more businesses and landlords will need to: 

  • Keep records of their business’ income and expenses in a digital format. 
  • Submit to HMRC using an MTD-Compatible software.
  • Send quarterly updates of the income and expenses of their business.
  • Finalise their business income and submit an end of period statement (EOPS) annually.  
  • Submit a final declaration of income annually.

Dext Prepare now has a new Self Assessment area where you can add and categorise income and expense data for you self employed or landlord clients, as well as compile reports and submit them directly to HMRC.

You can use the new Dext Prepare MTD for ITSA section for free until the 30th of June 2023, after which a subscription fee will apply.

How to start using Dext Prepare for MTD ITSA

  1. Login to your Dext Prepare Account.
  2. Go to the Self Assessment section in the sidebar.
  1. Click Accept and continue to agree to the terms and conditions and acknowledge that you can use the solution free of charge until 30 June 2023, after which time a subscription fee will apply.
  2. Once done, you will land on the Self Assessment page.

The Self Assessment Clients Page

The self assessment client page is where you can add and see a list of all of your self assessment clients.

You can add a client by clicking the Add Client button and following the steps in the section below.

Once client accounts have been added you can access a client’s businesses or properties by clicking on the relevant entity listed in the Businesses column.

Then from within their account you can to add and manage transactions and update the client’s settings.

You can also add additional business by clicking the Add businesses button next to the ITSA client.

Creating a Self Assessment Client Account

The same user privileges that exist in Dext Prepare apply in the Self Assessment section. If you are not an Admin user you will not be able to add a Self Assessment Client account. See more on user privileges here.

Adding a Self Assessment Client Account will create a dedicated space for you to manage the income source transaction data for each individual you assist in reporting earnings to HMRC.

  1. Go to the Self Assessment space in the sidebar, then Clients.
  2. Click Add client in the top left of the page.
  1. Enter the client’s name and email address (adding the NIN or known fact is optional), then click Next.
  1. On the next page enter the Business name.

A business is the entity for which you will collect income source documents. This entity could be a Sole Trader, Property Business, Partnership, Limited Company etc.

A client may have multiple businesses or properties, so if needed you can add additional businesses after the first entity is added.

  1. Select the Type of Business.

A business is the entity for which you will collect documents. There are two options:

Self employment: for a Sole Trader, Partnership, Limited Company etc.

Or UK Property: for a property businesses operating in the United Kingdom.

  1. Then select the Transactions Collection Method for transactions.

A transaction Collection Method is the type of documents you’ll be submitting to Dext, and will determine how you add transaction data to Dext. There are two collection method options:

  • Costs/Sales: add receipts and invoices to the costs & sales workspaces through various methods, including uploading items via the desktop or mobile app and via email.
  • Or Bank: add transaction data by connecting to a bank feed or uploading a bank statement. A bank feed will import historical transactions as far back as the bank will allow.

  1. When all the details are entered, click Add Business.
  2. If a client has multiple businesses or properties you can add another to their account by clicking Add another business.

If you are finished adding a business or businesses, click Next.

  1. On the next page, review the email that will be sent to the client, and add the client’s mobile number if you wish to send them an invitation by text. 

When ready, click Invite to Dext and an invitation will then be sent to the client via email and Text message.

  1. You will then see the new client account listed on the Self Assessment page.

Help your client get started in Dext Prepare for MTD ITSA by sharing this getting started guide with them.

Adding & Managing Income or Expenses

Add transaction data on behalf of your self assessment clients and categorise them into HMRC set codes. Categorised transactions can then be organised into reports on the reporting summaries page, in preparation for sending to HMRC.

How to Add Income & Expenses

To use a Transaction Method to add income and expense data on behalf of clients:

  1. Go to Self Assessment the sidebar to see a list of clients, and click on the business that you want to add data for in the Businesses column.  
  1. You will be taken directly to the Costs inbox or Bank workspace, depending on the submission method.
  2. Click on the green Add documents button at the top of the screen.

Depending of the transaction collection method selected (costs/sales or bank) you will see several submission methods.

See this article for how to use the different submission methods.

Categorising Transactions

The list of codes you can use to categorise transactions is preset by HMRC, and depends on the type of business selected.

You can see a list of these categories by going to List in the sidebar, then Categories.

See this article for how to categories costs & sales items or bank transactions.

Splitting a Costs or Sales Item

It may be necessary to split out line items in a costs or sales item, for example to differentiate between business and personal expenses.

See this article for how to use line items to split a transaction.

The Reporting Summaries Page

The reporting summary page is where all of the client’s data is compiled and broken down by category.

You can filter the data by date in the top left of the screen and export it by clicking Export to CSV.

In the near future, you will be able to submit these reports directly to HMRC and export reports as CSVs.

Find out more about the Summaries page here.