The way you report your income tax is changing—and if you’re self-employed or a landlord, it’s important to know what’s coming. Making Tax Digital for Income Tax (MTD for ITSA) is the UK government’s plan to modernise the tax system. Paper records are out, and digital reporting is in.

This guide gives you a clear, simple breakdown of what MTD for ITSA means, who it applies to, and how you can start preparing now.

What Is Making Tax Digital for Income Tax?

Making Tax Digital for Income Tax (MTD for ITSA) is a government initiative aimed at changing how taxes are recorded and submitted. The idea is to make the process faster, more accurate, and less reliant on manual paperwork.

Instead of submitting one big Self Assessment tax return once a year, MTD for ITSA will require eligible individuals to:

• Keep digital records of income and expenses

• Send quarterly updates to HMRC using approved software

• File a final declaration at the end of the tax year

It’s about giving both HMRC and taxpayers a clearer, more up-to-date picture of finances throughout the year.

Who Needs to Be Ready?

From April 2026, Making Tax Digital for Income Tax will apply to:

• Self-employed people with income over £50,000

• Landlords earning over £50,000 in property income

If your income is below that threshold, you won’t need to follow MTD rules just yet—but it’s expected to roll out to more people in future phases.

What Do You Need to Do?

Getting ready for MTD for ITSA isn’t complicated, but it does take a little preparation. Here’s what to think about:

• Are your records digital? If not, start transitioning from paper now.

• Do you use software that’s MTD-compatible? It’ll need to link directly to HMRC.

• Are you confident submitting quarterly reports? You’ll need to report income and expenses every three months.

The sooner you get used to the new process, the smoother it’ll be when the rules kick in.