What is Making Tax Digital for Income Tax?

Making Tax Digital (MTD) has been floating around for a while now – and if you’re self-employed or a landlord, there’s a new version with your name on it: MTD for Income Tax Self Assessment, or MTD for ITSA if you want to sound fancy.

Here’s everything you need to know – no jargon, no stress, and definitely no tax panic.

Be sure to head over to our Making Tax Digital hub, full of guides, software reviews, important dates and more.

What is MTD for ITSA? 👀

It’s HMRC’s big push to make tax more digital and less… paper shoved in a shoebox.

If you’re earning money from self-employment or property, and that income goes over a certain level, you’ll soon have to:

✅ Keep your records digitally

✅ Submit updates to HMRC every quarter

✅ Use MTD-approved software (we’ve tested loads – we can help you pick the right one!)

✅ File a final ‘End of Period Statement’ at the end of the year to confirm everything’s correct

Basically, instead of one annual tax return, you’ll be checking in with HMRC four times a year – like a weird little tax diary 📔

When does it kick in? 📅

Here’s the current rollout plan:

So, if your total income from self-employment and property is over £50k, you’re first up in April 2026.

If it’s between £30k–£50k, you’ve got until 2027.

And if you’re earning more than £20k? It’s all happening in 2028.

If you’re under £20k, you’re safe for now – but that could change, so best to keep one eye on it 👀

Who exactly does this affect? 🧑‍🌾🏠

Anyone with:

• Self-employment income (freelancers, side hustlers, tradespeople – you name it)
  
• UK property income (renting out houses, flats, holiday lets etc.)
  

And it’s the combined total from those sources that matters – not your overall income including PAYE.

Who doesn’t need to worry (yet)? 🚫

If you:

• Only have income from employment or pensions
  
• Earn under £20,000 from self-employment/property
  
• Already have a digital exemption from HMRC (for example, due to disability or lack of internet access)
  

…then MTD for ITSA isn’t knocking at your door just yet.

What stays the same? 🧮

• You’ll still pay your tax through Self Assessment – that part isn’t changing.
  

What’s changing is how and when you send your info to HMRC – smaller chunks, more often, and all digital.

How to prepare (without freaking out) 😌

Here’s your Dead Simple checklist:

🧠 Understand if and when it affects you – check your income levels

💻 Use proper accounting software – we can help you pick the best one

📆 Get into the habit of keeping digital records

📲 Ask us for help early – so you’re not scrambling at the last minute

Final thoughts from the Dead Simple team 🧡

MTD for ITSA is basically HMRC’s way of saying: “Let’s make tax smoother and more digital.” The goal is to avoid last-minute January chaos and help everyone stay on top of things year-round.

But let’s be real – it’s also one more thing to think about. That’s why we’ve created a one-stop hub to guide you through it all:

Whether you’re earning from a side hustle, rental property, or your main gig – we break it all down, Dead Simple style.

Need help getting MTD-ready?

We’ve got your back. Contact us here to chat through next steps and get set up the easy way 🚀