Category 1
MTD for Income Tax
Making Tax Digital for Income Tax (MTD ITSA) means keeping digital records and sending quarterly updates to HMRC, then a final declaration.
What it is
MTD for Income Tax (also called MTD ITSA) is HMRC’s digital way for self-employed people and landlords to report income tax. Instead of only filing once a year on paper, you keep digital business records and send updates through compatible software during the tax year, followed by a final declaration.
Who it applies to
From April 2026, it applies to self-employed individuals and landlords whose total qualifying income is over £50,000 (reducing to £30,000 from April 2027, and £20,000 from April 2028, under current government plans). You must also be registered for Self Assessment. Check GOV.UK for your exact start date.
What you need to do
- Keep digital records of income and expenses as you go.
- Send quarterly updates to HMRC (income and expenses summary).
- Send a final declaration after the tax year ends, including any other income.
- Use HMRC-compatible software that connects to HMRC systems.
Key points
- Quarterly updates are not a tax bill — they update HMRC on your trading income.
- You still pay tax through Self Assessment payment deadlines.
- Separate rules apply if you also operate a VAT-registered business.