Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) requires businesses and landlords with qualifying income to maintain digital records and update HMRC each quarter using compatible software.

For individuals, MTD for ITSA will be introduced in two phases:

• from April 2026, for those with qualifying income over £50,000
• from April 2027, for those with qualifying income over £30,000

The government remains committed to the future introduction of MTD for ITSA to partnerships.

Businesses, self-employed people and landlords will be required:

• to operate MTD from 6 April 2026 in relation to their trading and property income chargeable to Income Tax and Class 4 National Insurance contributions, if their total qualifying income from these income sources for a tax year exceeds £50,000
• to operate MTD from 6 April 2027 in relation to their trading and property income chargeable to Income Tax and Class 4 National Insurance contributions, if their total qualifying income from these income sources for a tax year exceeds £30,000

They will:

• keep their records digitally
• provide digital quarterly updates
• be able to provide their ITSA return information to HMRC through MTD compatible software

Please contact Fisher & Co. to see how we can assist in your compliance

01942 513729