These FAQs provides clear answers to common questions about Making Tax Digital (MTD) for Income Tax. It explains what MTD is, who it applies to, what you need to do, and how it may affect you, helping you understand your responsibilities and stay compliant.
At GM Accountants & Tax Consultants, our team of qualified accountants can support and guide you with Making Tax Digital for Income Tax Self-Assessment (MTD ITSA) and other tax matters, at competitive and affordable prices. Please feel free to contact us for expert advice. If you are unable to visit our office, we can arrange a video call at a time that suits you. For further information, email us at admin@gmtaxconsultants.co.uk or call us on 020 3773 4123.
What is MTD for Income Tax Self-Assessment (MTD ITSA)?
Making Tax Digital (MTD) for Income Tax is a new system introduced by HM Revenue & Customs (HMRC) requiring certain sole traders and landlords to keep digital records and submit quarterly updates of income and expenses instead of filing one annual return only.
Who does MTD ITSA apply to?
MTD applies to individual sole traders and landlords with qualifying income from:
- Self-employment
- UK or overseas property
It does not apply to employment income, pensions, or dividends
What are the MTD income thresholds and start dates?
MTD becomes mandatory based on turnover:
- From 6 April 2026 – Income over £50,000 (based on 2024/25 tax year)
- From April 2027 – Income over £30,000 (based on 2025/26)
- From April 2028 – Income over £20,000 (based on 2026/27)
The tax year runs from 6 April to 5 April.
If I have two income sources, how is the threshold calculated?
Your total qualifying income is combined.
Example:
£25,000 self-employment + £28,000 rental income = £53,000
You must join MTD from April 2026.
Are companies required to join MTD ITSA?
No. Limited companies are not currently within MTD for Income Tax. They fall under Corporation Tax rules instead.
Are partnerships required to join?
Not yet. MTD for partnerships and LLPs has no confirmed start date, so they are automatically exempt for now.
Who is exempt from MTD?
You are automatically exempt if:
- Your qualifying income is below the threshold
- You are a company
- You operate through a partnership or LLP
- You do not have a National Insurance number by the deadline
- You are a trustee, executor, or personal representative (in that role)
- You are a Lloyd’s underwriter (for underwriting income)
- You are a foster/kinship carer with only qualifying care relief income
- You lack mental or physical capacity and someone is legally authorised to act for you
No application is required in these cases.
What is digital exclusion?
You may qualify for exemption if it is not reasonably practicable for you to use digital tools due to:
- Age
- Disability
- Poor internet access
- Religious beliefs preventing digital use
This must usually be approved by HMRC
Does having an accountant make me exempt?
No. If your accountant submits information using MTD-compatible software, you are considered compliant
What are the quarterly reporting deadlines?
Under MTD, you must submit quarterly updates. Deadlines are:
- 7 August
- 7 November
- 7 February
- 7 May
These are based on the tax year (6 April – 5 April).
Can I join MTD voluntarily?
Yes. You may voluntarily register before reaching the threshold if you want to prepare early.
If a property is jointly owned, does the landlord report only their share of the expenses or the total expenses?
Landlords will only need to keep digital records and submit quarterly updates in respect of their share of income and expenses relating to jointly owned properties.
If I meet the income threshold, will HMRC automatically register me for Making Tax Digital (MTD)?
HMRC will not automatically register taxpayers who fall within the scope of Making Tax Digital (MTD). If your income meets the relevant threshold, you must sign up to use MTD, similar to how taxpayers currently register for Self-Assessment.
When should I register for MTD?
You must be registered for MTD by the April it first applies to you.
The registration deadline depends on whether you use tax year quarters (6 April) or calendar year quarters (1 April).
You can register in advance, and agents can also sign up clients early; check software compatibility if using calendar quarters.
MTD ITSA Calculator
MTD ITSA is the UK’s new digital system requiring self-employed people and landlords to keep digital records and submit quarterly updates to HMRC. It replaces the traditional annual tax return to make reporting more accurate and efficient.Use this calculator to know when it will be mandatory for you.
2024/25 Tax Return Figures
Enter data to find when you will be required to make quarterly MTD for Income Tax Submissions.
Self Employment
| Description | Amount (£) |
|---|---|
| Gross Turnover | |
| Other business income |
UK Land & Property Income
| Description | Amount (£) |
|---|---|
| Income from furnished holiday letting | |
| Total rents and other income | |
| Premiums from the grant of a lease | |
| Reverse premiums and inducements |
Foreign Property Income
| Description | Amount (£) |
|---|---|
| Total rents & receipts | |
| Premiums paid for the grant of a lease |
Summary
| Description | Amount (£) |
|---|---|
| Self Employment Total | 0 |
| Property Income Total | 0 |
| Foreign Property Income Total | 0 |
| Total income for MTD test | 0 |
| Mandated for 2026? |
Mandation Date
This is when you will be legally required to make quarterly MTD for Income Tax submissions
| Description | Date |
|---|---|
| MTD Quarterly Submission Start Date |
Note: The mandation date is based on 2024/25 tax return figures.
Totals update when clicking “Update Summary”.
