What is Making Tax Digital for Income Tax (MTD ITSA)?

Making Tax Digital for Income Tax Self Assessment (MTD ITSA) requires self-employed individuals and landlords with qualifying income above £50,000 to keep digital records and submit quarterly updates to HMRC from April 2026, with lower thresholds phased in subsequently. Compatible software — such as Xero, QuickBooks or FreeAgent — replaces the traditional annual Self Assessment return for affected taxpayers. Businesses must store their records digitally throughout the year and send four quarterly summaries plus a final declaration each tax year. The programme is a continuation of the broader Making Tax Digital initiative already mandatory for VAT-registered businesses.