Making Tax Digital for Income Tax Self Assessment (MTD ITSA) became mandatory from 6 April 2026 for self-employed individuals and landlords with qualifying income over £50,000. This is not a future deadline — it has arrived. If you meet the threshold and are not already compliant, you need to act now.
What Has Actually Happened
From 6 April 2026, anyone with gross qualifying income from self-employment, rental property, or both combined exceeding £50,000 in the 2024/25 tax year is legally required to:
- Keep digital income and expense records using HMRC-recognised software
- Submit quarterly updates to HMRC summarising their income and expenses
- Submit an End of Period Statement after the tax year ends
- Submit a Final Declaration by 31 January (replacing the traditional Self Assessment return)
The annual Self Assessment return (SA100) is replaced by this quarterly system for those in scope.
Who Is Affected Now?
Qualifying income over £50,000 in the 2024/25 tax year (the year ended 5 April 2025).
Qualifying income means gross income (before expenses) from self-employment and/or UK property.
The Rollout Timeline
| Date | Who Must Comply |
|---|---|
| 6 April 2026 (now) | Qualifying income over £50,000 in 2024/25 |
| 6 April 2027 | Qualifying income over £30,000 in 2025/26 |
| TBC (announced, not legislated) | Qualifying income over £20,000 |
| Not yet announced | Partnerships and trusts |
Which Software Do You Need?
You must use HMRC-recognised MTD-compatible software. HMRC maintains a list of approved products. Widely used options include:
- QuickBooks Self-Employed / QuickBooks Online — widely used, good for sole traders
- Xero — popular with growing businesses and limited companies
- FreeAgent — popular with freelancers and contractors
- Sage Accounting — established desktop and cloud options
- HMRC-recognised bridging software — for those who prefer spreadsheets, though this adds complexity
Free tools are available for simpler cases — HMRC publishes a full list of compatible software on GOV.UK.
The Quarterly Submission Deadlines
Under MTD ITSA, you submit four quarterly updates per year plus a Final Declaration. The quarterly deadlines are:
| Quarter Period | Submission Deadline |
|---|---|
| 6 April – 5 July | 5 August |
| 6 July – 5 October | 5 November |
| 6 October – 5 January | 5 February |
| 6 January – 5 April | 5 May |
| Final Declaration | 31 January (following tax year end) |
Penalties for Late Submission
HMRC uses a points-based penalty system. Each missed quarterly submission earns one penalty point. Once you accumulate four points, HMRC issues a £200 financial penalty. Points reset after a period of compliance.
Continued non-compliance can result in escalating penalties. HMRC has made clear that enforcement will be active once the system is fully established.
What If You Are Not Yet Compliant?
If your 2024/25 qualifying income exceeded £50,000 and you have not yet set up MTD-compatible software and begun keeping digital records, you need to act immediately. The first quarterly submission deadline for those in the 2026 cohort will be in August 2026.
Steps to take now:
- Confirm whether your 2024/25 qualifying income exceeds £50,000
- Choose and subscribe to HMRC-recognised MTD software
- Begin keeping digital records from the start of the current tax year (6 April 2026)
- Speak to your accountant about managing your quarterly submissions — we handle this on your behalf as part of our service
What About the April 2027 Cohort?
If your 2025/26 qualifying income is between £30,000 and £50,000, you will be required to comply with MTD ITSA from 6 April 2027. You have time to prepare — but do not leave it until the last minute. Setting up digital record-keeping now means you will be fully ready when the obligation kicks in.
See HMRC's guidance on Making Tax Digital for Income Tax and check the list of compatible software.
General information only. This article provides general guidance on UK tax and accounting matters and reflects our understanding of legislation and HMRC guidance at the time of publication. Tax rules, rates, and thresholds change frequently. Nothing in this article constitutes personalised tax or financial advice. Always seek advice specific to your circumstances from a qualified accountant before taking action. Ledgertech Accountants Ltd accepts no liability for any loss arising from reliance on this content.
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