Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) launches on 1 April 2026.
Below is an overview of what MTD is and what you and your clients need to do to prepare.
What is MTD?
Making Tax Digital (MTD) is a new way that some self-employed people and landlords must record and submit income and expenses to HMRC.
Under MTD, affected individuals must keep digital records of their income and expenses and send the information to HMRC in real time during the tax year, rather than submitting everything after the year has ended.
This means that those affected must:
- Keep digital records of their self-employed and/or property income and expenses using compatible software.
- Send quarterly updates of income and expenses to HMRC.
- Submit an annual tax return using software.
Who does MTD apply to?
MTD doesn’t apply to everyone.
It only applies to those who have self-employed income and/or property income over certain thresholds.
HMRC guidance refers to ‘qualifying income’. This is the gross income you receive from self-employment and/or letting out a property.
You must consider your total self-employment and property income combined (before deducting any expenses) to determine whether MTD applies to you.
Currently, if your total gross self-employment income and/or property income is below £20,000, MTD doesn’t apply to you.
Key dates and thresholds
Whether MTD applies to you depends on your level of qualifying income. If your qualifying income is:
- More than £50,000 for the 2024/25 tax year, you must use MTD from 6 April 2026.
- More than £30,000 for the 2025/26 tax year, you must use MTD from 6 April 2027.
- More than £20,000 for the 2026/27 tax year, the government is currently setting out plans to introduce MTD from 6 April 2028.
Only qualifying income counts towards these thresholds. This means the following do not count:
- Dividend income
- PAYE employment income
- Pensions
- Profit share from a partnership
- Savings income
Some people may also qualify for an exemption from MTD.
Discover who needs to use MTDWhen does MTD start?
The first tax year that MTD applies to is 2026/27, depending on your qualifying income.
If your qualifying income is over £50,000 for the tax year 2024/25, you must start using MTD from 6 April 2026.
More people will also be required to use MTD from 6 April 2027, depending on their income (see the key dates and thresholds above).
MTD requires you to submit quarterly updates of your income and expenses. Your first quarterly update will cover income and expenses from April to June 2026.
If you still need to submit a self assessment for 2025/26, you should file this as normal and not through MTD.
Make sure to sign up to MTD early. Don’t wait until 6 April 2026. Find out more about the MTD sign-up process.
Penalties will apply for late submission of quarterly updates.
Learn more about penaltiesCan I use HMRC online services for MTD?
No. You can’t use HMRC’s online services for MTD.
You must use a compatible software to complete your quarterly updates and annual tax return. There will be no online HMRC service to submit these.
It’s important to have your software in place before the MTD deadline that applies to you.
Learn more about MTD softwareWhat if MTD does not apply to me?
If MTD doesn’t apply to you, you’ll continue to submit your Self Assessment return using HMRC’s online services.
It’s important to keep an eye on your gross income from self-employment or property. Once you exceed the threshold, you may need to sign up to MTD if you’re not exempt.
For example, if you exceed the threshold during tax year 2026/27, then you’d complete your 2026/27 self assessment return as normal and sign up to MTD for tax year 2027/28.
What to do next
If you have an agent, speak to them to understand what you need to do next and when.
If you’re affected by MTD and you do not have an agent, you’ll need to sign up to MTD and make sure you have appropriate software in place before the deadline.
If you’re an agent, please read our agents’ guide to MTD for further information.
Communication from HMRC
HMRC has already started writing to individuals who will need to register for MTD. These letters are based on available data from 2024/25 filed Self Assessment returns.
Further letters will be sent in February and March 2026 with information about what you need to do.
If you don’t receive a letter, you should still check your income and whether MTD applies to you. Some individuals who need to register for MTD may not receive a letter because HMRC may not have the information about their prior income.
It's your responsibility to check whether you fall within scope for MTD, even if you haven’t been contacted directly.
