MTD ITSA - UK - 2026 rules - All guides
Making Tax Digital for Income Tax: Limited Company Directors
If you run a limited company, Making Tax Digital for Income Tax does not apply to your company. But your personal situation can still matter. Here is exactly how it works for directors.
Limited companies are outside MTD ITSA entirely — company profits fall under Corporation Tax, not Income Tax Self Assessment. A director is only brought into MTD ITSA through their own personal self-employment or UK property income above the threshold, not through their salary or dividends.
Does it apply to you?
Your limited company is not in MTD ITSA. Company profits are dealt with through Corporation Tax, and a separate Making Tax Digital for Corporation Tax regime is planned for the future — but that is a different system with no confirmed start date, not part of the 2026 ITSA rollout. As a director, the salary and dividends you take from your company do not count toward MTD ITSA either. You would only be brought in if, separately from the company, you have your own sole-trader self-employment or rental income above the threshold in your personal name.
The thresholds and dates
What counts toward your threshold
Neither your director salary, your dividends, nor your company turnover count toward MTD ITSA qualifying income. What counts is only gross income from any personal self-employment or UK property you hold outside the company. A director drawing £60,000 in salary and dividends from their company, with no other income, is not in MTD ITSA. The same director who also lets out a personal rental property bringing in £55,000 gross would be in scope on that property income from April 2026.
What you will need to do
For your company there is nothing to do for MTD ITSA — your obligations run through Corporation Tax and company accounts filing at Companies House. Keep an eye on Making Tax Digital for Corporation Tax for the future. If you also have personal self-employment or property income above the threshold, that is handled under MTD ITSA separately, with quarterly updates and a Final Declaration on that income only.
Common questions
Does MTD ITSA apply to my limited company?
No. Limited companies are outside MTD ITSA. Company profits fall under Corporation Tax. A separate Making Tax Digital for Corporation Tax is planned for the future but has no confirmed start date.
Do my salary and dividends count toward the MTD ITSA threshold?
No. Director salary and dividends are excluded. Only personal self-employment and UK property income count toward your MTD ITSA qualifying income.
I am a director but also rent out a property personally — am I affected?
Possibly. Your personal rental income is tested under the normal rules. If your gross property income (plus any personal self-employment) is over the threshold, you are in scope on that income.
What is Making Tax Digital for Corporation Tax?
It is a planned future extension of Making Tax Digital to company profits, separate from MTD ITSA. No confirmed start date has been announced, so limited companies have no immediate MTD obligation for their corporation tax.
What are my company obligations instead?
Your company files annual accounts at Companies House and a Corporation Tax return with HMRC. AdminShield tracks these company deadlines alongside any personal income-tax obligations you have.
Never miss a quarterly MTD deadline
AdminShield tracks your MTD ITSA quarterly updates and Final Declaration, reminds you before each falls due, and keeps your records organised - built for UK limited company directors and the accountants who support them.
Start free - no card requiredThis guide is general information about Making Tax Digital for Income Tax based on current HMRC rules and is not tax advice. Thresholds and dates may change; check your own circumstances with HMRC or a qualified accountant.