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What is MTD for Income Tax (MTD ITSA)?
Last verified 23 October 2026
MTD ITSA is short for Making Tax Digital for Income Tax Self Assessment. It is the HMRC scheme that requires some landlords and sole traders to keep digital records, send quarterly updates and submit their tax return through compatible software. You still pay Income Tax as before; what changes is how you keep records and report.
Why it matters to landlords
It starts in stages based on qualifying income, which is your gross self-employment and property income before expenses. You must use it from 6 April 2026 if that figure was over £50,000 for the 2024 to 2025 tax year, from 6 April 2027 if it is over £30,000 for 2025 to 2026, and from 6 April 2028 if it is over £20,000 for 2026 to 2027. Because the test uses rent before costs, a landlord with small profits can still be in scope.
Once you are in, you send four cumulative quarterly updates a year and then submit your tax return through your software by 31 January after the tax year ends. HMRC says it would start signing up people who need to use it but have not signed up themselves from September 2026, using the details it already holds. Some people are exempt, including anyone with qualifying income of £20,000 or less.
Example
A landlord collects £34,000 rent in the 2025 to 2026 tax year and has no other business income. Qualifying income is £34,000, even if profit after repairs and mortgage interest is far lower, so MTD for Income Tax applies from 6 April 2027.
Check if MTD for Income Tax applies to you →
Related terms
- Making Tax Digital (MTD)
- Qualifying income
- MTD threshold
- Quarterly period (update period)
- Signing up for MTD for Income Tax