So, what does this mean for you? Let’s break it down. 

Who does this apply to? 

MTD for ITSA will roll out in the following stages:

From April 2026, self-employed individuals and landlords with an annual income above £50,000 must comply. 

From April 2027, those individuals earning between £30,000 and £50,000 will also be required to join. 

For those earning below £30,000, the Government has yet to confirm if they will need to join MTD for ITSA in the future. General partnerships are not required to join in 2026 but will be included at a later date. 

If you fall into one of these categories, you will need to keep digital records and submit tax data to HMRC every quarter. 

What are the key changes? 

The largest change is a move to quarterly reporting, from the historic annual submission by 31 January. Instead of submitting a single Self-Assessment return each year, you will now need to submit four quarterly updates, followed by a final declaration. 

The deadlines for submitting quarterly updates are: 

• 7 August (for the period 6 April – 5 July) 
• 7 November (for the period 6 July – 5 October) 
• 7 February (for the period 6 October – 5 January) 
• 7 May (for the period 6 January – 5 April)

The final declaration (which replaces the annual tax return) must be submitted by 31 January after the tax year ends. 

To comply with MTD for ITSA, you must: 

1. Keep digital records – You’ll need MTD-compatible software to record income and expenses. 
2. Submit quarterly updates – Report your income and expenses to HMRC every three months, in line with the table above. 
3. Make a final declaration – Confirm all your income and any necessary tax adjustments before the final deadline. 

How does this affect me? 

If you’re self-employed or a landlord, you will need to adapt to this new system. Digital recordkeeping will become essential, and you may need to invest in MTD-compatible accounting software. 

Whilst the idea of collating information quarterly may seem daunting, it allows for more clarity around your business’ performance, enabling you to have more certainty around taxes, as well as cash-flow. 

How to prepare for MTD for ITSA 

• Start using MTD-compatible software now to get comfortable with digital recordkeeping. Software such as Xero or SAGE are set up for this. 
• Identify if you need to comply with MTD for ITSA based on their income level. 
• Plan for quarterly reporting and ensure you’re prepared for the extra workload it may bring. 

Final Thoughts 

MTD for ITSA is a significant change, but with early preparation, it doesn’t have to be overwhelming. By switching to digital records and understanding the new reporting requirements, you can ensure a smooth transition. 

If you need support, do reach out! The sooner you start preparing, the easier it will be when MTD for ITSA becomes mandatory.