MTD for Income Tax Self Assessment (ITSA)
Everything you need to know about HMRC's Making Tax Digital for Income Tax. Quarterly updates, who's affected, timeline, software requirements, and preparation steps.
MTD for ITSA — Rollout Timeline
Self-employed individuals and landlords with qualifying income > £50,000
Self-employed individuals and landlords with qualifying income > £30,000
Those earning > £20,000 — date to be confirmed by HMRC
Partnerships — no date set yet
Corporation Tax — no confirmed date
Who Is Affected?
If qualifying income from self-employment exceeds the threshold
If gross property income (rent) exceeds the threshold — includes UK and overseas property
Qualifying income is the higher of: total self-employment income OR total property income (not combined)
Deferred — no confirmed start date. Partners file individually when mandated
Not yet in scope for MTD. Companies continue filing CT600
Not in scope — PAYE already operates in real-time via RTI
Quarterly Updates & Final Declaration
5 submissions per year: 4 quarterly updates + 1 final declaration.
| Period | Deadline |
|---|---|
| Q1 (6 Apr – 5 Jul) | 5 August |
| Q2 (6 Jul – 5 Oct) | 5 November |
| Q3 (6 Oct – 5 Jan) | 5 February |
| Q4 (6 Jan – 5 Apr) | 5 May |
| Final Declaration | 31 January (following year) |
What Changes from Self Assessment?
Annual Self Assessment return
Quarterly digital updates + final declaration
5 submissions per year instead of 1
Paper records acceptable
Digital records mandatory
Must use MTD-compatible software
File by 31 January (paper: 31 October)
Quarterly deadlines + 31 January final declaration
More frequent but smaller reporting tasks
Any accounting method
Cash basis default (can elect accrual)
Cash basis becomes the default for eligible businesses
SA100 form via HMRC portal
API submission via MTD software
Cannot use HMRC portal for mandated taxpayers