Making Tax Digital for Self Employed: here’s what you need to know

October 21, 2025

From 6 April 2026, Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) begins its phased rollout for individuals with higher levels of business and/or property income. Let’s take a look to see if you need to do anything.

[5 Minute Read]

MTD for Income Tax becomes mandatory from 6 April 2026 for those over the first income threshold.
Those with over £50,000 qualifying income are in from April 2026. Your Self Assessment covering the period 2024-25 (due 31/01/2026) will be what HMRC use to decide if you’re eligible.
Your gross (before expenses) income from self-employment and property counts (UK or overseas). Employment income, dividends, pensions, and savings don’t count.
You’ll need to keep digital records, send quarterly updates using compatible software, and submit a single end of year Final Declaration by 31 January.

MTD for Income Tax applies to individuals (not partnerships yet) who run a self employed business and/or receive rental income. Trustees, personal representatives and non-resident companies are out of scope. Partnerships are planned for a later date.

HMRC determines whether you’re in by looking at your most recently filed Self Assessment return. They assess your qualifying income (gross self-employment + property).

What do I need to do to be compliant with MTD for ITSA?

You’ll keep your business and/or property records digitally and use MTD compatible software to send updates. You’ll send four in-year summaries (one for each self-employment and each property business). You can use either standard quarters (aligned to the tax year) or make a calendar quarter election in software. The standard quarters and official deadlines are:

6 Apr – 5 Jul → due 7 Aug
6 Jul – 5 Oct → due 7 Nov
6 Oct – 5 Jan → due 7 Feb
6 Jan – 5 Apr → due 7 May

At year end you’ll submit a single Final Declaration (through your software) which replaces the Self Assessment tax return, covering all income, reliefs and adjustments. The deadline remains 31 January following the tax year (e.g., 2026/27 due by 31 January 2028).

When does MTD for ITSA begin, and what are the key dates?

From 6^th April 2026, start keeping records in MTD-compatible software. On 7^th August 2026, you’ll need to complete your first quarterly update. For the period 6^th April 2026 – 5^th April 2027, the final declaration will be due on 31^st January 2028.

Is there any exemptions for MTD for ITSA?

You can apply for digital exclusion if it’s not reasonably practicable for you to use software – due to age, disability, remote location, or religious grounds.

Calculate your qualifying income from your 2024-25 self assessment tax return that’s due on 31^st January 2026. To do this, add up your revenue from self employment and property. If it’s over £50,000 – you’re in!
Decide whether to align to the tax year quarters, or calendar quarters.
Choose compatible software and authorise it with HMRC before April 2026, if you’re in the first wave.
Setup your digital records – separately for each trade and property.
Diarise the deadlines. Alternatively, get in touch with our team and we’ll keep track of that for you!

Ok, MTD for ITSA might seem like a bit of a pain. Especially if you’re one of the 732,498 people who filed their self-assessment on deadline day, or 31,442 people between 23:00 and 23:59 on 31^st January this year.

It’s a reality of the world that we’re becoming more digitised and information and data is expected in a more timely fashion. Self employed individuals see a significant lag in their reporting; under the traditional self-assessment system, revenue earned on 6^th April 2025 won’t be seen by HMRC until potentially 31^st January 2027.

Making Tax Digital hasn’t got the best reputation given the delays, but I genuinely think that businesses which choose to embrace the new rules will actually see benefits to their business. You can only make good business decisions with good data, and being mandated to prepare quarterly returns will help to provide you with much more up-to-date information, allowing you to plan ahead, control expenses and influence decisions and investments.

My advice; work with an accountant that wants more than just your records once per year. If you’re not getting valuable insights into your business monthly or quarterly, how can you see which direction of travel is best?