April 19, 2026 · 2 min read

MTD for Income Tax: what you need to do now

Last reviewed by the Ballards Online editorial team.

MTD ITSA is now live

Making Tax Digital for Income Tax Self Assessment (MTD ITSA) became mandatory on 6 April 2026 for self-employed individuals and landlords whose qualifying turnover from self-employment and property exceeds £50,000. The £30,000 turnover threshold is scheduled to follow from April 2027.

Who is in scope today

You are in scope of MTD ITSA from the current tax year if your combined qualifying turnover from self-employment and property for the 2024–25 tax year was over £50,000. HMRC has assessed eligibility from your most recently submitted Self Assessment return.

What MTD ITSA requires you to do

  • Keep digital records of income and expenses — paper notebooks and standalone spreadsheets are no longer compliant.
  • Use MTD-compatible software — Xero, QuickBooks, FreeAgent, Sage and several HMRC-listed alternatives qualify.
  • Send quarterly updates to HMRC through your software, on a rolling cycle.
  • Submit a final declaration by 31 January following the tax year (this replaces the old SA100).

Quarterly deadlines you need to know

Quarterly updates for the 2026–27 tax year are due one month after each quarter end. The standard quarter ends are 5 July, 5 October, 5 January and 5 April — with the corresponding update due 5 August, 5 November, 5 February and 5 May.

What you should do if you have not started

  1. Pick MTD-compatible software — if you are still on spreadsheets, switch now.
  2. Separate business and personal bank accounts so the digital record-keeping is clean.
  3. Catch up on any back records for the current tax year — HMRC expects records to be digital from 6 April 2026.
  4. Ask a qualified accountant to set up your first quarterly update before the next deadline.

Penalties for non-compliance

HMRC operates a points-based penalty regime for late quarterly updates and the final declaration. Late submission means points. Four points equals a £200 penalty, then £200 for every further slip.

If you would like us to handle your MTD ITSA end-to-end, see our MTD Self Assessment service or request a fixed-fee quote.