Free tool · UK · 2026 rules
Are you affected by Making Tax Digital for Income Tax?
MTD ITSA is replacing the annual Self Assessment return with quarterly digital reporting for sole traders and landlords. Answer two quick questions to find out if it applies to you — and exactly when you are mandated.
What is MTD ITSA?
Making Tax Digital for Income Tax Self Assessment (MTD ITSA) is HMRC's move to digital tax reporting for self-employed people and landlords. Instead of one annual Self Assessment return, those in scope keep digital records and send HMRC four quarterly updates plus a Final Declaration each tax year. It began its phased rollout on 6 April 2026.
Who joins, and when, depends on your qualifying income — your combined gross turnover from self-employment and UK property, before expenses.
The thresholds and dates
Limited companies are outside MTD ITSA. Partnerships are excluded for now, with no start date confirmed. The government has said the £20,000 threshold may be lowered further in future.
Common questions
Who has to use Making Tax Digital for Income Tax?
Sole traders and landlords whose combined gross income from self-employment and UK property is above the threshold for their phase. Limited companies and, for now, partnerships are not included — and neither are employees, pensioners or company directors with no self-employment or property income.
What counts as qualifying income?
Your combined gross income — total turnover, before expenses — from self-employment and UK property. It is not your profit. You add the two sources together to test against the threshold.
What will I actually have to do?
Keep digital records, use MTD-compatible software, and send HMRC a quarterly update four times a year followed by a Final Declaration after the tax year ends. This replaces the single annual Self Assessment return.
What happens if I miss a submission?
MTD ITSA uses a points-based system. Each missed submission adds a penalty point, and reaching four points triggers a £200 fine.
Never miss a quarterly deadline
AdminShield tracks your tax and compliance deadlines, reminds you before they fall due, and keeps your records organised — built for UK sole traders, landlords and the accountants who support them.
Start freeThis checker gives general guidance based on published MTD ITSA thresholds and dates. It is not tax advice. Confirm your position with HMRC or a qualified accountant, as individual circumstances and exemptions can apply.