MTD for ITSA

                                                          MAKING TAX DIGITAL FOR INCOME TAX SELF ASSESSMENT
Making Tax Digital (MTD) is HMRC’s initiative to digitise the UK tax system through the phasing of new digital tax recording and reporting requirements. Under MTD, businesses and other taxpayers need to use HMRC – compliant software and processes to submit information digitally every quarter.

MAKING TAX DIGITAL FOR VAT
Since the 1st April 2022, all VAT – registered businesses were required to comply with the MTD regime for their VAT accounting. This impacted around 1.1m UK businesses that are registered for VAT with taxable turnover below the current threshold of £85,000.
MAKING TAX DIGITAL FOR INCOME TAX (MTD FOR ITSA)
Self – employed businesses and landlords with annual business or property income above £50,000 will need to follow the rules for MTD for Income Tax from accounting periods starting on or after April 2026. This is the next important phase of MTD and like the requirement for VAT, it will require self-employed businesses and landlords to report income using compliant software on a quarterly basis. Self employed businesses and landlords with annual business or property income between £30,000 and £50,000 will need to follow the rules for MTD for Income Tax from April 2027.