Welcome to the future of tax—where spreadsheets go stale, paper fades, and HMRC says, “It’s time to go digital.” Enter MTD for ITSA: Making Tax Digital for Income Tax Self Assessment. It’s not just a new system—it’s a new mindset. Think of it as the digital satnav for your tax journey, helping landlords and sole traders steer through the fog of finances with fewer wrong turns.
So, what is MTD for ITSA?
It’s HMRC’s bold mission to modernise the way income tax is reported. Instead of waiting until the end of the year to dump everything into a single Self Assessment, MTD for ITSA breaks it down into bite-sized digital updates sent every quarter.
No more “April panic.” Just regular check-ins, digital records, and real-time clarity.
Who does it apply to?
MTD for ITSA is rolling out in stages, and starting April 2026, it will apply to:
Self-employed individuals and landlords
With a total income over £50,000 (threshold reduces to £30,000 in April 2027)
Who would normally file a Self Assessment tax return
(If that’s you, your tax life is about to get a tech upgrade.)
What are the key requirements?
· Keep digital records
No more scribbled notes or shoeboxes full of receipts. Your income and expenses must now be stored in MTD-compliant software.
· Submit quarterly updates
Every three months, you'll send a summary of income and expenses to HMRC through your software.
· End-of-Period Statement (EOPS)
At year-end, confirm everything is correct and make final adjustments.
· Final Declaration (Crystallisation)
Replace the old tax return by confirming your total income and tax due.
Why is this needed?
MTD for ITSA isn’t just a compliance checklist—it’s your business’s upgrade to version 2.0.
It turns your chaotic year-end scramble into a series of manageable steps. It helps you spot trends, manage cash flow, and make informed decisions all year round—not just when your accountant sends that dreaded “We need your records” email.
It’s tax, but smarter. More predictable. Less stressful. And yes, it might just save you money by helping you catch errors, claim expenses properly, and avoid late-filing penalties.
In short: MTD for ITSA is the Fitbit for your finances—keeping your tax in shape, one digital step at a time.