Making Tax Digital for Income Tax Self-Assessment (MTD ITSA)
Making Tax Digital for Income Tax Self-Assessment (MTD ITSA) explained
Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) is a new way of sending your tax information to HMRC if you are self-employed or a landlord. From April 2026, it will be introduced gradually.As of April 2026, instead of submitting your income and expenses once a year, you’ll send updates every three months to HMRC. This should make it easier to keep your records up to date and give you a clearer picture of how much tax you owe during the year.
You will still only pay one tax bill every year, which is due on 31 January (plus payments on account by 31 January and 31 July, if applicable), as is the case now via what will be called a Final Declaration.
We know this is a big change - we are here to continually guide and assist you.
Making Tax Digital for Income Tax Self-Assessment (MTD ITSA) explained
Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) is a new way of sending your tax information to HMRC if you are self-employed or a landlord. From April 2026, it will be introduced gradually.As of April 2026, instead of submitting your income and expenses once a year, you’ll send updates every three months to HMRC. This should make it easier to keep your records up to date and give you a clearer picture of how much tax you owe during the year.
You will still only pay one tax bill every year, which is due on 31 January (plus payments on account by 31 January and 31 July, if applicable), as is the case now via what will be called a Final Declaration.
We know this is a big change - we are here to continually guide and assist you.
Changes in how you inform HMRC about your income
This means you will have to keep digital records of your income and expenses throughout the year, using an app or computer software. You will then have to send this to HMRC quarterly and complete a Final Declaration for the full year.
Hogbens Dunphy have been using cloud accounting packages for years. Consequently, digitising records is not new to us. We can offer advice on accounting software best suited to you and or your business requirements or digitised your records on your behalf.
Changes in how you inform HMRC about your income
This means you will have to keep digital records of your income and expenses throughout the year, using an app or computer software. You will then have to send this to HMRC quarterly and complete a Final Declaration for the full year.
Hogbens Dunphy have been using cloud accounting packages for years. Consequently, digitising records is not new to us. We can offer advice on accounting software best suited to you and or your business requirements or digitised your records on your behalf.
This is who needs to use this new system:
- From 6 April 2026 if you have turnover above £50,000
- From 6 April 2027 if you have turnover above £30,000
- From 6 April 2028 if you have turnover above £20,000
Turnover means total income from self-employment and property together, before you take away expenses.
Hogbens Dunphy can provide advice and assistance on how to digitise your records and file your quarterly submissions and annual Final Declaration on your behalf. We are here to help.
This is who needs to use this new system:
- From 6 April 2026 if you have turnover above £50,000
- From 6 April 2027 if you have turnover above £30,000
- From 6 April 2028 if you have turnover above £20,000
Turnover means total income from self-employment and property together, before you take away expenses.
Hogbens Dunphy can provide advice and assistance on how to digitise your records and file your quarterly submissions and annual Final Declaration on your behalf. We are here to help.