In April 2026, Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) will become mandatory for self-employed individuals and landlords whose annual business or property income exceeds £50,000.

Key Details:

Who is Affected?

• Self-employed individuals and landlords with annual gross income from business or property over £50,000.

What Changes in April 2026?

• Digital Record Keeping: Affected taxpayers must keep digital records of their income and expenses using HMRC-approved software.
• Quarterly Updates: You will need to submit quarterly updates of your income and expenses to HMRC through this software. These updates replace the annual tax return process.
• End-of-Year Submission: At the end of the tax year, you’ll need to submit a final declaration to confirm your total income and calculate the exact tax owed.

Quarterly Reporting Deadlines:

• Reports will be submitted every three months, typically within a month after the quarter ends.

This is the first phase of MTD for ITSA, with further extensions planned for those earning over £30,000 in April 2027.