Making Tax Digital (MTD) for self-assessment (ITSA)

As of December 2022, the launch of Making Tax Digital for Income Tax has been delayed by HMRC. The first phase of MTD for ITSA will now begin in April 2026 for sole traders and landlords earning above £50,000.

From April 2026 all unincorporated businesses and landlords with total business or property income over £50,000 per year must submit their Income Tax Self Assessment (ITSA) using the Making Tax Digital (MTD service.

This means that if you don't already, you should start maintaining your accounting records using MTD compatible software such as IRIS Elements Cashbook to be ready for the change. You can take part in a pilot scheme from now.

You will need to provide a quarterly update and an end of period statement (EOPS) to HMRC. You then need to submit your final declaration and pay the tax you owe by 31st January of the following year.

We've produced a MTD for ITSA guide with more information.

Don't worry, you can use IRIS Elements Cashbook to record and produce everything you need to submit your returns.