What is MTD for ITSA?
MTD for ITSA (Making Tax Digital for Income Tax Self Assessment) is HMRC's regime requiring UK sole traders and landlords in scope to keep digital records of business and property income, submit cumulative quarterly updates to HMRC via compatible software, and submit a tax return after the tax year.
Who has to use MTD for ITSA
The mandate phases in by income threshold:
- From 6 April 2026 — sole traders and landlords with combined business and property income above £50,000 in the 2024 to 2025 tax year.
- From 6 April 2027 — threshold drops to £30,000 of combined business and property income.
- From 6 April 2028 — threshold drops to £20,000.
The £50,000 threshold is gross income from self-employment and property, not net profit. Income from employment, savings, dividends, and pensions does not count. If you cross the threshold once, you stay in MTD even if your income later falls.
What MTD for ITSA actually requires
Three obligations sit at the heart of the regime:
- Digital records. Income and expense data must be kept digitally throughout the year. Paper records and standalone spreadsheets are not enough on their own.
- Quarterly updates. Four times a year, you submit a summary of business income and allowable expenses to HMRC, broken down by their standard categories. Submissions go directly through MTD-compatible software.
- Tax return. After the tax year, make accounting and tax adjustments, add other income, claim reliefs, and submit the return by 31 January.
The deadlines that matter
Quarterly deadlines fall one month and seven days after the end of each quarter. For the standard fiscal-year quarters in 2026 to 2027:
- Q1 (6 April – 5 July 2026): submit by 7 August 2026
- Q2 (6 April – 5 October 2026): submit by 7 November 2026
- Q3 (6 April 2026 – 5 January 2027): submit by 7 February 2027
- Q4 (6 April 2026 – 5 April 2027): submit by 7 May 2027
- Tax return: due 31 January 2028
You can opt to use calendar quarters instead. The deadline rule is the same: one month and seven days after each period end.
Penalties for missing MTD deadlines
HMRC will not apply penalty points for late quarterly updates in the 2026 to 2027 tax year, although every update must still be sent before the tax return. From later tax years, quarterly updates are covered by a points-based penalty system. Late tax returns and late payments have separate rules. Our MTD for ITSA penalties guide explains them.
Briefcase Ledger is purpose-built for MTD for ITSA. Bank feeds, AI categorisation, quarterly submissions, and the year-end declaration in one place — from £9/month.
See Briefcase LedgerFrequently asked questions
What does MTD for ITSA stand for?
MTD for ITSA stands for Making Tax Digital for Income Tax Self Assessment. It requires sole traders and landlords in scope to keep digital records, send cumulative quarterly updates, and submit a tax return through compatible software.
Who has to use MTD for ITSA?
From 6 April 2026, mandatory for sole traders and landlords whose combined business and property income exceeds £50,000 in the 2024 to 2025 tax year. Threshold drops to £30,000 from April 2027 and £20,000 from April 2028. Income from employment, dividends, savings, and pensions does not count towards the threshold.
When are the MTD for ITSA quarterly deadlines?
For standard update periods in 2026 to 2027, cumulative quarterly updates are due on 7 August 2026, 7 November 2026, 7 February 2027, and 7 May 2027. The tax return and any tax owed are due by 31 January 2028.
What software do I need for MTD for ITSA?
You need MTD-compatible software approved by HMRC. Most UK sole traders use a single all-in-one platform such as Briefcase Ledger, Xero, QuickBooks, or FreeAgent that handles both digital record keeping and submissions. Bridging spreadsheets are allowed if digitally linked to MTD-compatible software.