Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) is a UK government initiative designed to digitise the tax system for individuals who are self-employed or landlords. Here’s a breakdown of what it means, who it affects, and what you need to do:

What is MTD for ITSA?

Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) is a government initiative that requires taxpayers to:

  • Keep digital records of income and expenses.

  • Submit quarterly updates to HMRC using compatible software.

  • Submit an end-of-period statement (EOPS) and a final declaration (replacing the Self Assessment tax return).

Who Will Be Affected?

MTD for ITSA will apply to:

  • Self-employed individuals and landlords with total business and/or property income over £50,000 from April 2026.

  • Those earning over £30,000 will be brought in from April 2027.

Important: If your income is below £30,000, MTD does not yet apply — but HMRC may expand it further in the future.

Key Dates

Date Milestone
April 2026 MTD for ITSA starts for income over £50,000
April 2027 Expanded to those with income over £30,000
Future Possible inclusion of partnerships and lower incomes (not yet confirmed)

What You’ll Need to Do

  1. Use MTD-compatible software (Amica Accounting use Xero).

  2. Keep digital records of all business income and expenses.

  3. Send quarterly updates to HMRC (summary of income and expenses).

  4. Submit an End of Period Statement (EOPS) at the end of your accounting year.

  5. Submit a Final Declaration confirming all income sources (similar to the Self Assessment return).

Example Timeline (for a typical April to April tax year)

Quarter Ends Due Date for Quarterly Update
30 June 5 August
30 Sept 5 November
31 Dec 5 February
31 March 5 May

Benefits of MTD

  • Reduces tax errors.

  • Helps you stay on top of tax obligations.

  • May improve cash flow through more frequent updates

How to Prepare Now

  • Check your income level to see when you’ll be required to join.

  • Choose MTD-compatible software if you haven’t already.

  • Start keeping digital records even if you’re not yet mandated — good practice.

  • Speak to your accountant or tax adviser if unsure.

 

 

Or for a simpler way of working, get in touch with us today and we can help you navigate the new changes!