MTD for ITSA — the essentials!

Making Tax Digital for Income Tax Self Assessment

What is it? HMRC’s new way for sole traders and landlords to keep digital records and send quarterly updates via compatible software, followed by an end-of-year tax return (Final Declaration). GOV.UK+2GOV.UK+2

Who must join (and when)

• Income over £50,000 (from self-employment + property): from 6 April 2026.

• Income over £30,000: from 6 April 2027.

• Government plans to extend to over £20,000: from 6 April 2028 (legislation to be introduced).

• Partnerships: will be mandated later (date TBC). GOV.UK

  
  

What you’ll submit

1. Four quarterly updates for each self-employment and property source. Deadlines (standard periods):

   • 6 Apr–5 Jul → 7 Aug

   • 6 Apr–5 Oct → 7 Nov

   • 6 Oct–5 Jan → 7 Feb

   • 6 Apr–5 Apr → 7 May(Calendar-month quarters are allowed; same 7th-of-month deadlines.) GOV.UK

     
     

2. Final Declaration / tax return via software by 31 January after the tax year (brings in all income and reliefs). GOV.UK+2GOV.UK+2

   
   

Records & software

• Keep and correct digital records and send updates using MTD-compatible software (your agent can do this for you). GOV.UK

  
  

Exemptions & who’s out of scope

• Qualifying income ≤ £20,000 – not required.

• Digitally excluded (e.g., disability, remote location, age) can apply for exemption.

• Automatic exclusions include trustees, personal reps of the deceased, Lloyd’s underwriting income and certain non-resident companies. GOV.UK

  
  

Payments (unchanged)

• Tax still payable on standard SA timelines (e.g., 31 January balancing payment and payments on account where due). GOV.UK

Practical prep checklist

• Assess your qualifying income (combined self-employment + property).

• Choose software and set up bank feeds/categories.

• Decide update periods (standard vs calendar).

• Engage your agent for sign-up and permissions.