Answers · UK 2025/26

What is Making Tax Digital for Income Tax and when does it start?

Making Tax Digital for Income Tax Self Assessment (MTD ITSA) is mandatory from April 2026 for self-employed people and landlords with income over £50,000. It requires quarterly digital submissions to HMRC using compatible software. The threshold drops to £30,000 from April 2027.

Last updated: 28 May 2026Last reviewed: 28 May 2026How we verify

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Making Tax Digital for Income Tax Self Assessment (MTD ITSA) is HMRC's programme to modernise the tax system by requiring digital record-keeping and quarterly reporting. The rollout timeline: April 2026 — mandatory for sole traders and landlords with combined qualifying income over £50,000/year. April 2027 — mandatory for those with income over £30,000/year. April 2028 — further expansion planned (threshold to be confirmed). Under MTD ITSA, affected taxpayers must: keep digital records of income and expenses using HMRC-compatible software; submit quarterly updates to HMRC (by 7 August, 7 November, 7 February and 7 May); submit a final declaration (replacing the annual Self Assessment return) by 31 January following the tax year end. Compatible software includes Xero, QuickBooks, FreeAgent, Sage, and several HMRC-recognised applications. Spreadsheets with bridging software are also permitted. Penalties for non-compliance are points-based: each missed obligation earns points, and above a threshold (4 points for quarterly filers), a £200 penalty is issued. Points reset after a compliance period. For 2026/27, the income threshold is based on gross income (before expenses) from self-employment and property combined. Partnerships are included in a later phase. The mandatory MTD for VAT has been in force since April 2022 for all VAT-registered businesses. MTD ITSA is a separate programme with different software requirements.