Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) is one of the biggest changes to the UK tax system in recent years.

It will affect many self-employed individuals and landlords, so it’s important to understand what’s coming and how to prepare.

What is MTD for ITSA?

MTD for ITSA is a new way of reporting income to HMRC. Instead of submitting one Self-Assessment tax return each year, affected taxpayers will need to keep digital records and submit quarterly reports and an End of Year Declaration, BUT it only applies to individuals with income from self-employment and/or property.

When does it start?

MTD for ITSA will be introduced in phases:

• From April 2026 – for individuals with total turnover from self-employment and property over £50,000 but based on the figures reported in the tax return 2024-25.
  

  Please note that salary and dividends from a Limited Company is not considered Self-Employment income.

• From April 2027 – for individuals with total turnover from self-employment and property over £30,000 based on the figures reported in the tax return 2025-26.

For clients of Cogent Accountants for whom we prepare Tax Returns, we will know the relevant figures for turnover and we will contact you if you need to register for MTD for ITSA.

For those clients we DO NOT prepare Tax Returns for, you will need to address the MTD for ITSA urgently.