From 6 April 2026 HMRC is requiring any sole traders or landlords with an annual income in excess of £50,000 to make submissions through Making Tax Digital for Income Tax (MTD ITSA).
Under MTD ITSA taxpayers are required to keep digital records and submit quarterly updates to HMRC through approved software.
The quarterly update is a requirement to submit simple returns to HMRC with your income and expenses. These will include:
- Self-assessment income & expenses for the quarter in question, along with any previously reported figures for that tax year.
- Rental income & expenses for the quarter in question, along with any previously reported figures for that tax year.
- Details of any corrections made to those figures, not including any accounting or tax adjustments. These are still completed at the end.
In general, these periods will run every three months during the tax year, with the periods being those shown below. These returns are due the 7th of the following month, this will be familiar for those who fill VAT returns.
- Quarter to 5 July (due by 7 August)
- Quarter to 5 October (due by 7 November)
- Quarter to 5 January (due 7 February
- Quarter to 5 April (due 7 May)
After the four quarterly updates are submitted, you will need to make a final declaration, this will include any accounting or tax adjustments along with ant income not already declared (such as interest & dividends). This will work as the MTD ITSA version of your self-assessment tax return.
If you’re looking for help to get ready for MTD ITSA, with the submission themselves or would simply like more information please get in touch with us.
