Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) requires businesses and landlords with qualifying income to maintain digital records and update HMRC each quarter using compatible software.
Who will need to use Making Tax Digital for Income Tax
You’ll need to use Making Tax Digital for Income Tax if all of the following apply:
- you’re an individual registered for Self Assessment
- you get income from self-employment or property, or both
- your qualifying income is more than £30,000
When will this effect me?
For individuals, MTD for ITSA will be introduced in two phases:
- from April 2026, for those with qualifying income over £50,000
- from April 2027, for those with qualifying income over £30,000
What is included in your qualifying income?
Your qualifying income is the total gross income that you get in a tax year from self-employment and property.
Find out what’s included in your qualifying income.
What will change? Those impacted will need to:
-
- keep their records digitally
- provide digital quarterly update
- be able to provide their ITSA return information to HMRC through MTD compatible software
What will happen by 6 April 2026
- You need to submit your Self Assessment tax return for the 2024 to 2025 tax year by 31 January 2026.
- HMRC will review your return and check if your qualifying income is more than £50,000.
- If it is, HMRC will write to you and confirm that you must start using Making Tax Digital for Income Tax by 6 April 2026.
- You must find software that works with Making Tax Digital for Income Tax and authorise it.
- You must sign up for Making Tax Digital for Income Tax.
Check if you need to use Making Tax Digital for Income Tax
You can use HMRC’s online tool to check if you need to use the service and when you need to start. This tool can also be used by someone else on your behalf.
This tool currently will only ask you about your qualifying income for the 2024 to 2025 tax year and the 2025 to 2026 tax year.
It will not ask you about your foreign income. If you have foreign income you should refer to work out your qualifying income for Making Tax Digital for Income Tax.
Before you start
You’ll need to consider the following for tax years ending 5 April 2025 and 5 April 2026:
- if you’ll need to send a Self Assessment tax return and which sources of income you’ll need to declare
- how much self-employed or property income you’ll receive
When to start using Making Tax Digital for Income Tax
Making Tax Digital for Income Tax will become mandatory in phases, starting from 6 April 2026.
You may be able to voluntarily sign up now. This will help HMRC test and develop the service.
You do not currently need to use the service if your qualifying income is £30,000 or less.
The government has announced that if your total gross income from self-employment and property is over £20,000, you’ll need to use Making Tax Digital for Income Tax in the future. The timeline for this will be confirmed at a later date.
HMRC will also set out when partnerships need to use Making Tax Digital for Income Tax at a later date.
If you become a sole trader or a landlord after 6 April 2026
You do not need to start using Making Tax Digital for Income Tax until after you have submitted your first Self Assessment tax return, but you can choose to voluntarily sign up at any time.
Who will not need to use Making Tax Digital for Income Tax
If you are exempt or choose not to sign up voluntarily during the testing period, you must continue to report your income and gains in a Self Assessment tax return.
If you meet certain conditions, you may be automatically exempt from using Making Tax Digital for Income Tax. If you are automatically exempt, you do not need to apply for an exemption.
When you need to apply for an exemption
If you are not automatically exempt, you may be able to apply for an exemption when the application process opens. You’ll need to show that it’s not reasonable or practical for you to use software to keep digital records and submit them.