MTD for Income Tax - what to expect

Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) requires businesses and landlords with  qualifying income to maintain digital records and update HMRC each quarter using compatible software.

When you will need to enrol for MTD ITSA

For individuals, MTD for ITSA will be introduced in two phases:

• From April 2026, for those with qualifying income over £50,000

• From April 2027, for those with qualifying income over £30,000

Who will need to use Making Tax Digital for Income Tax

You will be required to submit quarterly returns from April 2026 if:

• You’re an individual registered for Self Assessment and

• You get income from self-employment or property, or both and

• Your qualifying income is more than £50,000

Working out your qualifying income

Qualifying income will be the total gross income you get in a tax year, from self-employment plus property. To assess qualifying income for a tax year, HMRC will look at the tax return submitted the year before. For example, assessment for qualifying income for the tax year 2026 to 2027, will be based on total income in the tax return submitted for the tax year 2024 to 2025. This tax return should have been submitted by 31 January 2026.
HMRC guidance provides more information on qualifying income.

How to Enrol for MTD ITSA

Agents - you can find out about signing up your clients here.

Individuals - if you will be filing your business submissions yourself, find out more here.

How TaxCalc will support you for MTD ITSA

TaxCalc's MTD Quarterly Filer is available from April 2025 for agent pilot users initially, with general availability for agents  expected by June 2025 and in March 2026 for individuals. 

As 2025/26 is the pilot year, the licence for MTD Quarterly Filer will be free of charge and we will ensure access is made available once the product is generally released. During this pilot year the deadlines are flexible especially as submissions are now cumulative, so data can be submitted from 6th April regardless of when taxpayers are signed up. The first deadline is 5th August but there will be no penalties for 2025/26.

For a video overview of MTD Quarterly Filer, please click here and scroll down to the MTD Quarterly Filer section.

Please see Frequently Asked Questions for more information on the MTD ITSA process.