MTD Income Tax Guide

What is Making Tax Digital for Income Tax?

HMRC's initiative to modernize the tax system requires self-employed individuals and landlords to keep digital records and submit quarterly updates.

1 min read
HMRC Guidance
Updated 2025/26
2 sections

The Basics of MTD ITSA lslsls

Making Tax Digital for Income Tax (often called MTD ITSA or MTD for Income Tax) is HMRC’s programme to transform how self-employed people and landlords report their income. Instead of filing one annual Self Assessment tax return, you’ll keep digital records throughout the year and send quarterly summaries to HMRC using compatible software.

4×
Per Year
Quarterly updates to HMRC
£50k+
Threshold
First mandated group (2026)
31 Jan
Deadline
Payment dates unchanged

The goal is to reduce errors, give you a clearer view of your tax position during the year, and make the tax system more efficient. While it means more frequent reporting, it should also mean fewer surprises when your tax bill arrives.

How the MTD cycle works

Under MTD for Income Tax, you’ll follow this cycle:

Keep digital records
Record income and expenses in compatible software as they happen
Send quarterly updates
Submit summaries to HMRC every three months (not detailed transactions)
Make year-end adjustments
Submit an End of Period Statement (EOPS) for each income source
Submit your Final Declaration
Confirm your overall tax position (replaces the Self Assessment return)
Important

While you'll report more frequently, payment dates stay the same. You'll still pay tax on 31 January and 31 July under the existing payments on account system.