Making Tax Digital for Income Tax (MTD for ITSA)

Making Tax Digital for Income Tax (MTD for ITSA) is an upcoming change to how self-employed individuals and landlords report income to HMRC.

It forms part of the wider Making Tax Digital programme, which already applies to VAT-registered businesses (see our guide to
👉 Making Tax Digital for small businesses)

Although MTD for ITSA is being introduced gradually, it will eventually affect many small business owners. Preparing early can make the transition far smoother and help you avoid unnecessary stress later on.

What Is Making Tax Digital for Income Tax?

Making Tax Digital for Income Tax is designed to modernise how income tax information is reported to HMRC.

Under MTD for ITSA, affected taxpayers will need to:

• Keep digital records of income and expenses

• Use HMRC-approved accounting software

• Submit quarterly updates to HMRC

• Complete a final end-of-year declaration

For many businesses, this means moving away from spreadsheets or manual processes and towards proper cloud-based systems. Our 👉 cloud accounting and bookkeeping services can help make this transition simple and manageable.

Who Will Need to Comply with MTD for ITSA?

MTD for ITSA is expected to apply to:

• Self-employed individuals

• Landlords with property income

• Those whose combined business and/or property income exceeds HMRC thresholds

If you currently complete a 👉 Self Assessment tax return there is a strong chance MTD for ITSA will affect you in the future.

When Will MTD for ITSA Apply?

HMRC has announced planned start dates, but these may change. Rather than waiting for mandatory deadlines, many business owners are choosing to prepare early so systems are already in place.

What Will Change Under MTD for ITSA?

Compared to the current system, MTD for ITSA introduces several key changes:

• Quarterly submissions instead of a single annual return

• Digital record-keeping throughout the year

• Submissions made via approved software, not the HMRC portal

• A final declaration at the end of the tax year

These changes are similar in principle to how VAT now operates under MTD. If you’re already VAT-registered, you may find the transition easier — particularly if you already use our
👉 VAT return services

What You Can Do Now to Prepare

Even if MTD for ITSA doesn’t apply to you yet, there are sensible steps you can take now:

• Move to cloud accounting software

• Keep business and property income records up to date

• Separate personal and business finances

• Understand upcoming quarterly reporting requirements

• Speak to an accountant early to plan ahead

Many businesses already manage deadlines more confidently by understanding their wider obligations — see our
👉 UK small business tax deadlines guide

How Atreus Accountants Can Help

We support small business owners and landlords with practical, forward-looking MTD preparation, including:

• Reviewing whether and when MTD for ITSA will apply to you

• Setting up MTD-compliant accounting software

• Ongoing bookkeeping and digital record support

• Preparing for quarterly updates and final submissions

• Advice tailored to self-employed individuals and landlords

Our goal is to make compliance straightforward, structured, and stress-free — not overwhelming.

Preparing for Making Tax Digital Doesn’t Need to Be Stressful

We help small business owners and landlords understand upcoming MTD for ITSA requirements and get set up properly — well before deadlines arrive.

👉 Speak to Atreus Accountants about MTD for ITSA preparation

MTD for ITSA FAQs

When does MTD for ITSA start?
MTD for ITSA is being introduced in phases. HMRC has announced planned dates, but these may change. Preparing early is strongly recommended.

Does MTD for ITSA apply to sole traders?
Yes. Self-employed individuals who meet the income thresholds will need to comply.

Does MTD for ITSA apply to landlords?
Yes. Landlords with qualifying property income will also fall under MTD for ITSA.

Can I still use spreadsheets?
Spreadsheets alone are not sufficient. They must be linked to HMRC using approved bridging or accounting software.

Do I need an accountant for MTD for ITSA?
It isn’t mandatory, but professional support can help ensure compliance, reduce errors, and save time.