What is MTD ITSA?
MTD ITSA stands for Making Tax Digital for Income Tax. It is a new way of reporting property and self-employment income to HMRC. You must use software to keep digital records and send Income Tax updates.
What are the requirements?
The software must allow you to:
- Create and store digital records of your business transactions,
- Send updates of total business income and expenses every 3 months,
- Confirm end of period statements,
- Final declaration.
If you have more than one business you must meet the requirements for each business. If you have multiple properties in the UK this is treated as one UK property business but if you have properties outside of the UK then this is treated as one ‘overseas property business’.
Important dates
If you are an individual, registered for self-assessment and self-employed or collecting property income of more than £50,000 qualifying income before 6 April 2025. Then you must meet MTD ITSA from 6 April 2026.
From 6 April 2027, this applies to qualifying income of more than £30,000 collected before 6 April 2026.
What will happen after 6 April 2026?
You do not need to meet MTD ITSA until you have submitted your first self-assessment tax return.
Need advice?
Get in contact with us and we will help you find a compatible software and give you further guidance on MTD ITSA.
