With Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) rolling out from April 2026, it’s essential to know whether you need to register and how to stay compliant. MTD for ITSA requires certain taxpayers to keep digital records and submit quarterly updates to HMRC.
You need to register for MTD for ITSA if:
- You are an individual sole trader or landlord with a gross annual income from business and/or property of more than £50k from April 2026.
- From April 2027, self-employed individuals and landlords with gross income over £30,000 will also need to register.
Currently, Partnerships, limited companies, and those with gross income below £30,000 are not included in MTD for ITSA (though HMRC may expand MTD in the future).
How do you register for MTD for ITSA?
If you already have an accountant, it’s best to speak with them before you look at completing any of the 5 steps below. An accountant will be in the position to provide support with getting you registered along with further guidance on software selection and best practice records management.
- Check your eligibility – If your income is above the threshold, you need to register.
- Choose MTD-compatible software – HMRC requires you to use approved digital accounting software like Xero, QuickBooks, or FreeAgent.
- Sign up via HMRC’s online portal – You will need your Government Gateway login details and tax information.
- Start keeping digital records – All income and expenses must be recorded digitally from your first MTD reporting period.
- Submit quarterly updates – Instead of filing an annual return, you will send quarterly income and expense reports to HMRC.
Even if you’re below the threshold now, preparing for MTD early will save you time and stress later.
What are the key deadlines for MTD for ITSA?
- 5th April 2026 – The final tax year for annual self-assessment tax returns for those affected with gross income over £50,000.
- 6th April 2026 – MTD for ITSA officially begins for individuals with gross income over £50,000.
- 6th April 2027 – MTD expands to include those with gross income over £30,000.
- Quarterly reporting dates – Those affected will need to submit updates every three months, by 7th August, 7th November, 7th February and 7th May.
The sooner you register, the sooner you can ensure compliance and avoid last-minute panic.
What happens if you don’t register?
The best way to avoid penalties is to register early and use digital accounting software to stay on top of your tax obligations. Failing to register could lead to:
- Late registration penalties – Failing to register on time could result in fines.
- Points-based penalties– HMRC will introduce penalties for late or missing quarterly submissions.
- Tax investigations – Incorrect reporting or failing to comply may trigger an HMRC audit.
How can an Accountant help with MTD for ITSA?
Navigating MTD for ITSA can be confusing, but we’re here to help. Our accountants can:
- Check if you need to register and guide you through the process.
- Help you choose MTD-compliant software that is right for your business and set up your digital records.
- Manage your quarterly submissions and ensure your tax affairs are accurate.
- Provide expert tax advice to minimise your tax liability.
MTD for ITSA is coming – don’t get caught out! Our expert team at BAS Associates is here to guide you through every step Contact us today to ensure you’re fully prepared and compliant.
