Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) went live on 6 April 2026 — the biggest overhaul of UK tax reporting in a generation. Millions of sole traders and landlords now face a new way of filing. Use our free checker below to find out exactly where you stand.
MTD Eligibility & Deadline Checker
Free tool by Beck Hill Ltd — find out if you’re in scope and see your key dates
This is your total turnover / rental income before expenses — not profit. If you have both self-employment and property income, add them together.
What Is Making Tax Digital for Income Tax?
Making Tax Digital for Income Tax Self Assessment — known as MTD for ITSA, or simply MTD — is the government’s plan to move the UK tax system fully online. Instead of filing one annual Self Assessment return, affected taxpayers must now keep digital records throughout the year and submit four quarterly updates to HMRC using approved software, followed by a final year-end declaration.
MTD went live on 6 April 2026 for the first wave of taxpayers. It is the biggest change to how individuals report their taxes since Self Assessment was introduced in 1996. HMRC estimates it will eventually affect over three million people when the thresholds drop to £20,000 in April 2028.
“This is not a future threat — it is happening now. The first quarterly update under MTD for ITSA is due on 7 August 2026, which is fewer than two months away. If you have not registered or set up software, this needs to happen this week.” — Beck Hill Ltd, June 2026
The MTD Rollout Timeline
Phase 1: Sole traders and landlords with gross income over £50,000 in 2024/25 must keep digital records and submit quarterly updates via MTD-approved software.
First Q1 submission due (6 April — 5 July 2026). This is the first real test of the new system. Missing it earns a penalty point from 2027/28 onwards.
Phase 2: Threshold drops to £30,000. Estimated to bring in hundreds of thousands more sole traders and landlords.
Phase 3: Threshold drops to £20,000, bringing the majority of self-employed people and landlords into scope.
HMRC is still reviewing how to bring the estimated 4 million taxpayers earning below £20,000 into the system. No date confirmed yet. MTD for Corporation Tax has been cancelled.
Your Quarterly Deadlines for 2026/27
Once you are in scope, you must submit four quarterly updates each tax year. These cover a summary of your income and expenses for each three-month period. You do not send receipts — just the totals — but you must keep your digital records in case HMRC opens an enquiry.
After your four quarterly updates, you submit an End of Period Statement (EOPS) and a Final Declaration — the new digital equivalent of your Self Assessment return. Your Final Declaration for 2026/27 is due by 31 January 2028.
⚠ Soft landing for 2026/27: HMRC has confirmed that penalty points will not be charged for late quarterly updates in the first year. However, penalties for late Final Declarations and late payment of tax still apply from day one. The soft landing ends after 2026/27 — from 2027/28, every missed quarterly deadline earns a penalty point.
How the Penalty System Works
MTD uses a points-based penalty system rather than immediate fines. This is designed to be fairer for occasional mistakes, but stricter for persistent non-compliance.
| Missed Deadline | What Happens |
|---|---|
| Each late quarterly update (from 2027/28) | +1 penalty point added to your record |
| 4 penalty points accumulated | £200 fine issued automatically |
| Each further late submission at 4 points | Additional £200 fine per missed deadline |
| Late Final Declaration | Penalty points apply from year one (no soft landing) |
| Points expire after | 24 months of on-time submissions (for quarterly filers) |
What You Need to Do
Step 1: Check whether you are in scope
Use the checker at the top of this page. Your qualifying income is your gross income from self-employment and/or UK property — not profit after expenses. If you have both, add them together. HMRC used your 2024/25 Self Assessment return (due January 2026) to determine your Phase 1 eligibility.
Step 2: Register with HMRC for MTD
You must be registered for MTD for ITSA with HMRC before you can make any submissions. This is separate from your existing Self Assessment registration. If you are a Beck Hill Ltd client, we can handle this registration on your behalf.
Step 3: Choose and set up MTD-compatible software
Submissions cannot be made through HMRC’s own website — you must use HMRC-approved third-party software that connects to HMRC via the MTD API. Popular options include:
- Xero — excellent for small businesses with employees or multiple income streams
- QuickBooks — widely used, strong bank feed integration
- FreeAgent — popular with freelancers and sole traders
- Sage — established option, good for more complex businesses
HMRC publishes the full list of approved software. If you are not already on one of these platforms, it is worth switching before your first quarterly deadline.
Step 4: Keep digital records from 6 April 2026
You must keep digital records of all business income and expenses in real time. This does not mean you need to scan every receipt — but your totals must be recorded digitally, in software that can submit directly to HMRC.
Important: The qualifying income threshold is based on gross income, not profit. A landlord earning £52,000 in rent but spending £30,000 on mortgage interest and repairs is in scope — because their gross income exceeds £50,000, even though their profit is much lower.
Frequently Asked Questions
Yes, if your qualifying income exceeds the threshold. MTD replaces the annual Self Assessment return with four quarterly updates plus a Final Declaration. You will still declare your tax position at the year end, but the process is different and requires approved software.
Not on its own. HMRC requires submissions to be made through MTD-compatible software that connects to their systems via an API. Some ‘bridging software’ products allow you to link a spreadsheet to an MTD-compatible submission tool, but it is generally simpler and safer to use dedicated accounting software.
No. MTD for Income Tax applies to sole traders and landlords who file Self Assessment. HMRC confirmed in July 2025 that it will not proceed with MTD for Corporation Tax. Limited companies are unaffected for now.
HMRC offers a permanent digital exclusion exemption for people who cannot use digital tools due to age, disability, remoteness, or other genuine reasons. You must apply to HMRC directly. If granted, you are permanently exempt from MTD.
Yes. HMRC combines your gross self-employment income and gross property income to determine your qualifying income for threshold purposes. If either source alone, or both combined, exceed the relevant threshold, you are in scope.
If your accountant handles your Self Assessment today, they can also manage your MTD submissions — but you should confirm this with them. Beck Hill Ltd offers a full MTD management service, covering HMRC registration, software setup, quarterly submissions, and your Final Declaration.
Let Beck Hill Ltd Handle Your MTD
We register you with HMRC, set up the right software, and manage all four quarterly submissions on your behalf — so you can get on with running your business. Serving sole traders and landlords in Neath, Port Talbot, Swansea, and across the UK.
Get MTD-Ready Today Call Beata: 07588 603827
