Answers · UK 2025/26
How does Making Tax Digital for Income Tax Self Assessment work?
From April 2026, self-employed people and landlords with income above £50,000 must use MTD-compatible software to keep digital records and submit quarterly updates to HMRC.
Full answer
Making Tax Digital for Income Tax Self Assessment (MTD ITSA) replaces the annual Self Assessment tax return with a system of quarterly digital updates and a final declaration. From April 2026, the requirement applies to self-employed individuals and landlords with qualifying income above £50,000; from April 2027, it extends to those with income above £30,000. You must use MTD-compatible software (such as QuickBooks, Xero, or FreeAgent) to maintain digital records and send four quarterly summaries of income and expenses to HMRC each year. A final End of Period Statement (EOPS) and Overall Self Assessment are submitted after the tax year ends. Late submission penalties apply. HMRC's free-to-use bridging software option is also available for those who cannot afford commercial software.
This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.