Two major shifts at the same time: MTD ITSA and Companies House Reform

Two major shifts landing at the same time – and how firms can stay in control

MTD ITSA: the deadline is fixed, and the workload is real

Most people in the profession know MTD ITSA has been on the horizon for years. The difference now is that the timetable is locked in and the numbers involved are sizeable. Around 2.9 million taxpayers could fall under the new rules once the full rollout lands. Still, only a small fraction of firms feel genuinely ready, even though most agree this is a chance to overhaul outdated processes.

Here is the current picture:

• Quarterly updates start in April 2026 for taxpayers earning over 50k, followed by those earning over 30k in April 2027.
• Digital records become standard for sole traders and landlords with UK property income.
• The goal is straightforward: cleaner data and fewer corrections.

For practices, the shift isn’t just about meeting HMRC’s expectations. It’s about building a workflow that keeps information current throughout the year instead of reconstructing it months later.

Where Andica fits

Andica has been preparing for this move for some time. The record-keeping platform is already set up for MTD ITSA quarterly updates and suits both sole traders and landlords. MTD VAT is built in, so users can run all digital tax obligations in one place.

A dedicated MTD ITSA filing solution is also in testing with selected users and will be available for everyone in April 2026. That gives firms a clear path from digital records through to quarterly updates and final submissions.

Companies House reform: the quieter change with a big impact

While MTD has taken most of the attention, the Companies House reforms may prove just as disruptive. These changes are no longer proposals – they are being implemented and they alter almost every part of the filing process.

Here’s where things stand:

• Mandatory ID verification began 18 November 2025.
• Agents must register as ACSPs from spring 2026.
• Only a small percentage of people who need to verify have started.
• From April 2027, filing moves entirely to commercial software and abridged and filleted accounts are removed. Even micro-entities will need to file full financial statements.
• Director awareness and readiness remain low.

The intention behind the reform is clear: improve accuracy, strengthen the register and reduce the misuse of company data. The practical effect for accountants is that client education, verification, and updated filing standards will all land at once.

How Andica supports the transition

Andica’s Company Secretarial software will be updated to match the new rules, including verification checks and the upcoming changes to filing formats. As Companies House moves toward a software-only model, users will also be able to continue filing accounts through Andica Accounts Production software.

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