Received a Brown Envelope from HMRC? Don’t Panic

If one of those dreaded HMRC brown envelopes has landed on your doormat recently, you’re not the only one. It’s part of their latest awareness campaign about something called MTD for ITSA. Bit of a mouthful, we know – but if you run a restaurant or café, it’s definitely something you’ll want to be aware of.

Let’s break it down into plain English.


What is MTD for ITSA?


It stands for Making Tax Digital for Income Tax Self Assessment – HMRC’s way of dragging the tax system into the digital era. It means big changes for how self-employed individuals and landlords report their income – and that includes many hospitality business owners.

If you’re self-employed or earn income from property, you’ll soon need to:

  • Keep digital records of your income and expenses

  • Use accounting software that connects with HMRC (don’t worry – we’ll help you choose the right one)

  • Submit quarterly updates, instead of just one tax return a year

  • File a final declaration online at the end of the year

When does this kick in?


The rollout will happen in stages:

  • From April 2026 if your total income (not just profit) from self-employment and/or property is over £50,000

  • From April 2027 if your income is over £30,000

If your income in the 2023–24 tax year is already near or above £50,000, you can expect a letter from HMRC in 2025 as part of their campaign.


Got the letter? Don’t stress


We get it – no one enjoys getting post from HMRC. But this time, it’s just a heads-up. You’ve got plenty of time to get things in order, and we’re here to make the whole process straightforward.


We’ve already helped restaurants, cafés, and other food businesses make the move to MTD-compliant systems – and we’ll do the same for you.

We’ll:

  • Recommend the best software for your needs

  • Show you how to use it without the jargon

  • Make sure you’re compliant well before the deadline

So if you’ve had the letter – or just want to get ahead of the curve – give us a ring on 0113 240 4100 and we’ll talk you through it.


Restaurants, cafes, and takeaways can benefit greatly from working with a specialist accountant. If you hadn’t noticed already, we are specialist accountants in Leeds for food service businesses, so unlike most accountants, we have years of experience working with businesses just like you. If you're interested in finding out more about how we can help your restaurant become more profitable,  book a call with one of our accounting experts.