Everything you need to know about MTD for ITSA — who's affected, key deadlines, and how we can help you prepare with confidence.
From April 2026, sole traders and landlords with income over £50,000 must keep digital records and submit quarterly updates to HMRC. The threshold drops to £30,000 in April 2027 and £20,000 in April 2028. Don't leave it to the last minute — speak to us today.
Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) is a major HMRC initiative that changes how self-employed individuals and landlords report their income to HMRC. Instead of filing one annual Self Assessment tax return, you will need to keep digital records and submit quarterly updates throughout the year using HMRC-approved software.
The goal is to make the tax system more accurate, efficient and easier to manage — but it does require you to change how you keep your books.
MTD for ITSA applies to anyone who submits a Self Assessment tax return and has income above certain thresholds. Here's a quick guide:
ℹ In March 2025 the government confirmed a third phase from April 2028 for those with income over £20,000. Partnerships will be mandated at a future date yet to be confirmed.
Here are the key dates you need to be aware of:
Now is the time to get set up with MTD-compatible software such as QuickBooks, review your record keeping habits and speak to your accountant. The earlier you prepare, the smoother the transition.
Sole traders and landlords with qualifying income over £50,000 must begin keeping digital records and submitting quarterly updates to HMRC.
The requirement extends to sole traders and landlords with qualifying income over £30,000.
Announced in March 2025, sole traders and landlords with qualifying income over £20,000 in the 2026 to 2027 tax year will need to use MTD for ITSA from April 2028.
The government remains committed to the future introduction of MTD for ITSA to partnerships. Dates and thresholds are yet to be announced.
Under MTD for ITSA, your tax obligations change from one annual return to a more regular reporting cycle:
You must keep records of all your business income and expenses digitally using HMRC-approved software. Spreadsheets alone will not be sufficient — you'll need dedicated accounting software like QuickBooks.
Every three months you'll need to submit a summary of your income and expenses to HMRC via your software. This gives HMRC a more up-to-date picture of your tax position throughout the year.
At the end of the tax year you confirm your figures, make any final adjustments and submit an End of Period Statement (EOPS).
You then submit a Final Declaration (replacing the current Self Assessment return) to confirm your total income from all sources. This is when your tax bill for the year is calculated.
As a QuickBooks Platinum ProAdvisor with over 25 years of experience, we are fully prepared for Making Tax Digital. Here's how we can help:
We'll review your current situation and confirm exactly when and how MTD for ITSA applies to you.
As a QuickBooks Platinum ProAdvisor we'll set up your account, migrate your data and train you on the software.
We'll handle all your quarterly updates, End of Period Statements and Final Declarations on your behalf.