It’s been a long time coming, but Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) is on its way!
As of April 2026, self-employed individuals and landlords who meet certain criteria will need to send quarterly updates to HMRC regarding their income and expenditure and keep digital records instead of relying on old-school paper trails.
If you are eligible, you’ve now got less than a year to get your ducks in a row as far as MTD for ITSA is concerned.
I actually spoke about the transition to MTD for ITSA in more detail in a previous blog post. Click this link to learn more about what MTD is, how it might affect you, and what you’ll be required to submit to HMRC and when.
If you’re short on time, here’s a quick recap:
- You will need to use MTD for ITSA if you have an income of more than £50,000 per year
- The reporting period will be cumulative (running from 6th April to 5th April)
- There will be four set reporting periods throughout the calendar year (although you can change these reporting periods to fit in with your month ends, if you want to)
- You’ll need to start using online accounting software that is compatible with the MTD scheme
- You will be exempt from MTD for ITSA if you do not have a UK National Insurance number; you claim qualifying care income as your only source of income; or something might prevent you from using a computer to submit your tax return, such as a bad broadband connection due to a rural location, or an existing disability
If you earned more than £50,000 in the 2023/24 tax year and are therefore eligible to start sending your self-assessment information to HMRC via Making Tax Digital in April 2026, you may have already received a letter with more information on the change and instructions on how to set up your account.
I appreciate that this new way of working might appear a little daunting, but trust me, it’s going to make calculating and organising your yearly tax return SO much easier. My advice is, jump on board with it as soon as you possibly can so you’re not scrabbling to apply at the last minute.
If you’re keen to get to grips with the new system ASAP but are worried about making any costly mistakes, there is the option to sign up to MTD for ITSA now so you can start to understand how it all works, get used to the new submission deadlines, and avoid penalties. By doing so, you’ll also get exclusive access to HMRC’s dedicated Customer Support team, which could come in handy if you have any immediate queries or are struggling to get used to the digital element.
Earn less than £50k per year? Sadly, you won’t be able to avoid MTD for ITSA for long! HMRC will be requiring individuals who earn more than £30k per year to register for the scheme from April 2027 onwards. So, whichever camp you’re in, it’s worth understanding how the system works so you’re ready to embrace it when the time comes.
As always, if you need help getting your head around any aspect of the government’s Making Tax Digital initiatives, including the upcoming MTD for ITSA, please don’t hesitate to contact me. I love nothing more than teaching business owners how to embrace new systems and streamline their bookkeeping processes. I’m also here if you need help calculating and filing your self-assessment returns; I’ll even offer you a sizeable discount on my service fees if you can send me the information I need to complete your return by the end of September!
