Making Tax Digital for Income Tax and Self Assessment
(MTD for ITSA)
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Use of Accounting Software to record transactions
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Digital record keeping
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Quarterly submissions
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End Of Period Submission (EOPS)
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Final Declaration
What is MTD for ITSA?
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Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) is a government initiative designed to modernize tax reporting for sole traders and landlords.
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Instead of submitting an annual tax return, taxpayers will need to keep digital records and submit quarterly updates to HMRC using MTD-compatible software.
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This shift aims to reduce errors, improve efficiency, and provide real-time tax insights—but it also means sole traders must adapt quickly to new digital requirements.
Who does MTD applies to?
MTD for ITSA applies to individuals who file Self Assessment tax returns and earn income from:
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Self-employment (sole traders),
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Property rental (landlords),
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or a mix of self employment and property rental.
However, not everyone is required to comply immediately.
When will the MTD start?
MTD will be rollout in three different stages, based on qualifying income
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6th April 2026 – Sole traders and landlords earning over £50,000 must comply.
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6th of April 2027 – Those earning between £30,000 and £50,000 will be included.
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6th of April 2028 Those earning £20,000+ may be required to join later.
Exemptions: Some individuals may be exempt due to digital exclusion or other special circumstances.
What is the assessment period?
HMRC will assess your qualifying income for the period prior to the tax year that you will start as follows
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for those earning over £50,000 in 2024-2025 tax year, the start is the 6th of April 2026
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for those earning over £30,000 in 2025-2026 tax year, the start is the 6th of April 2027
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for those earning over £20,000 in 2026-2027 tax year, the start is the 6th of April 2028
What is changing?
If your gross qualifying income (before expenses) exceeds the threshold, you must:
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Keep digital records of income and expenses using MTD-compatible software,
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Submit quarterly updates to HMRC instead of an annual tax return,
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Submit an End Of Period Statement (EOPS),
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Submit the Final Declaration.
This means sole traders and landlords must shift from traditional bookkeeping to digital tax management—which can be time-consuming and complex without expert guidance.
What are the deadlines?
The deadlines for the quarterly submissions is one month after the end of the period, while the deadline for the EOPS and Final Declaration is the 31st of January following the end of the tax year.
How can we help?
We specialize in helping sole traders transition smoothly to MTD for ITSA. Here’s how we support you:
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Free transition from regular assessment to MTD including the registration.
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MTD-Compatible Solutions – We’ll set up your records with the right software—so you stay compliant without the hassle.
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Quarterly Tax Management – Forget tax worries—we’ll prepare and submit your quarterly updates on your behalf.
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Expert Guidance – We break down complex tax rules into plain, easy-to-understand advice.
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Cost-Effective Services – Get a tailored, affordable tax solution without overspending on unnecessary tools.
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Personalized Support – Whether you need one-on-one assistance or a full-service tax management plan, we’ve got you covered.
What is the assessment period?
HMRC will assess your qualifying income for the period prior to the tax year that you will start as follows
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for those earning over £50,000 in 2024-2025 tax year, the start is the 6th of April 2026
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for those earning over £30,000 in 2025-2026 tax year, the start is the 6th of April 2027
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for those earning over £20,000 in 2026-2027 tax year, the start is the 6th of April 2028