Making Tax Digital for Income Tax Self-Assessment.

Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) is a new way of sending your tax information to HMRC if you are self-employed or a landlord. From April 2026, it will be introduced gradually.

What is changing with MTD?

Instead of sending your income and expenses once a year, you’ll send updates every three months. This should make it easier to keep your records up to date and give you a clearer picture of how much tax you owe during the year.

You will still only pay one tax bill every year, which is due on 31 January (plus payments on account by 31 January and 31 July, if applicable), as is the case now.

We know this is a big change and it might take time to get used to. But don’t worry, this page is here to provide you with helpful guidance and will be updated regularly

Changes in how you tell HMRC about your income.

If you’re self-employed or a landlord (or both) with combined income from these sources over certain amounts, MTD will apply to you.

This means you will have to keep digital records of your income and expenses throughout the year, using an app or computer software. You will then have to send this to HMRC every three months (known as a ‘Quarter’ because it’s a quarter of the year), and complete a year-end declaration for the full year.

Changes to tax penalties.

There will be a ‘soft landing’ for penalties for those joining MTD in April 2026, which was confirmed in the November 2025 Budget. This means that those who join MTD from April 2026 will not receive penalty points for the late submission of their first four quarterly updates.

We will update this page to include more information on penalties when it is available.

Who needs to use the new system and when?

This is who needs to use this new system:

• From 6 April 2026 if you have turnover above £50,000
• From 6 April 2027 if you have turnover above £30,000
• From 6 April 2028 if you have turnover above £20,000

Turnover means total income from self-employment and property together, before you take away expenses.

What to do now.

The changes are being rolled out from 6 April 2026 and HMRC will decide if you need to use MTD from this date based on your 2024/25 Self Assessment return.

You don’t need to report anything before then, but it’s good to be prepared. Here’s what you can do to get ready:

• File your Self Assessment tax return for the year ended 5 April 2025 if you have not done so already
• Check if the changes apply to you and when you will have to start using the new system, using the information above
• Choose the software you want to use. You can find more information about how to do this on HMRC’s website
• If you want to start getting used to the new system now, you can sign up for testing
• You can sign up for MTD here if you have chosen your software and are ready to go

Are there exemptions?

There are a number of automatic exemptions that apply and there is further information available on the government website. If you are automatically exempt, you will not be able to sign up for MTD.

If you are exempt from MTD, you should continue to file your Self Assessment tax return as normal.

What if I can’t use a computer?

You can apply for an exemption from MTD if you are not able to use a computer to keep your records. This is known as being ‘digitally excluded’. HMRC define this as it is not being reasonable for you to use compatible software to keep digital records or send them to HMRC.

You could be digitally excluded for a number of reasons depending on your personal circumstances and more information is available here.

If you think you are digitally excluded, the process to apply for an exemption from MTD depends on whether you are already exempt from MTD for VAT.

If you are already exempt from MTD for VAT you must contact HMRC by phone or in writing to confirm if the exemption also applies to MTD for Income Tax. You will be asked about your MTD for VAT exemption and if there has been a change in circumstances since that decision. That should usually result in a quick decision letter from HMRC.

If you do not have a MTD for VAT exemption, you must contact HMRC by phone or in writing and HMRC will ask for details to support your case for digital exclusion. You may need to provide evidence to support the reason, and HMRC will make clear what is needed and when. Once the information has been assessed, a decision letter will be sent to you.

There is further detailed guidance on the application process.

You can call HMRC on 0300 200 3310 or write to them at:

Self Assessment
HM Revenue and Customs
BX9 1AS
United Kingdom

Where can I get help?

You can find more information on the Making Tax Digital website.

If you struggle with using computers or online forms, you can call HMRC using the details above.