Glossary · UK
What is Making Tax Digital for Income Tax (MTD ITSA)?
A mandatory HMRC digital reporting regime requiring quarterly income/expense summaries from self-employed individuals and landlords, phased from April 2026.
Full Definition
Making Tax Digital for Income Tax Self Assessment (MTD ITSA) is an HMRC initiative requiring self-employed individuals and landlords to keep digital records and submit quarterly summaries of income and expenses through compatible software, replacing the annual Self Assessment return. Implementation timeline: April 2026 -- those with qualifying income over GBP 50,000; April 2027 -- those over GBP 30,000; April 2028 -- potentially GBP 20,000 threshold. Quarterly updates are cumulative summaries due within one month of each quarter end. End-of-period statements and a final declaration replace the SA100. Compatible software is required. Exemptions include digital exclusion and certain complex cases.