MTD ITSA is HMRC's initiative to modernise tax reporting. If you're self-employed or a landlord, you'll need to keep digital records and submit quarterly updates. Here's everything you need to know.
April 2026
Self-employed & Landlords (£50k+)
MTD ITSA becomes mandatory for self-employed individuals and landlords with gross income over £50,000.
April 2027
Income Threshold Lowered (£30k+)
Requirement extends to those with gross income between £30,000 and £50,000.
TBC
Further Expansion
HMRC may lower thresholds further. Those under £30k can voluntarily sign up now.
MTD ITSA applies to self-employed individuals and landlords whose income exceeds certain thresholds.
Sole traders with trading income over £50,000 (from April 2026)
Property landlords with rental income over £50,000 (from April 2026)
Those whose combined self-employment and property income exceeds the threshold
Note: Partnership income and company directors are currently excluded. Employment income (PAYE) is not affected. You can voluntarily sign up early to get familiar with the process.
What you'll need to do under MTD ITSA
You must keep digital records of all business income and expenses using MTD-compatible software.
Submit a summary of your income and expenses to HMRC every quarter (within 1 month of quarter end).
Submit a final summary for each income source by 31 January following the tax year end.
Submit your final tax calculation and pay any tax due by 31 January following the tax year end.
Submit your quarterly update within 1 month of each quarter ending
| Quarter | Period | Submission Deadline |
|---|---|---|
| Q1 | 6 April - 5 July | 5 August |
| Q2 | 6 July - 5 October | 5 November |
| Q3 | 6 October - 5 January | 5 February |
| Q4 | 6 January - 5 April | 5 May |
HMRC will apply penalties for late or inaccurate submissions
TaxStats Source is MTD ITSA compatible software that makes compliance simple. Upload your documents, let AI categorise them, and submit directly to HMRC.