MTD for Income Tax is here.
Are you ready?
Making Tax Digital for Income Tax Self Assessment (MTD ITSA) is now mandatory for self-employed individuals and landlords with income over £50,000. Quarterly digital reporting has replaced the annual Self Assessment for those affected — and the threshold drops further in coming years.
Important: The rules have changed
From April 2026, HMRC requires digital record-keeping and quarterly updates instead of a single annual return. Missing a quarterly submission can result in penalty points — and fines. NIL R£TURN can handle all of this for you.
What MTD ITSA means in practice
Digital records required
All income and expenses must be recorded digitally using HMRC-compatible software — paper records are no longer sufficient.
4 quarterly updates
You must submit a summary of income and expenses to HMRC every quarter — not just once a year at January.
End-of-period statement
At year end, you finalise your figures with an End-of-Period Statement (EOPS) and a Final Declaration to HMRC.
Penalty point system
Late or missed submissions earn penalty points. Reach the threshold and a £200 fine is issued — points accumulate fast.
MTD ITSA applies to you if you are...
- Self-employed with income over £50,000 (from April 2026)
- A landlord with rental income over £50,000 (from April 2026)
- Self-employed with income over £30,000 (from April 2027)
- A landlord with rental income over £30,000 (from April 2027)
- Self-employed or landlord with income over £20,000 (from April 2028)
- Anyone with combined self-employment & rental income above the threshold
MTD submission timeline
Q1 update
Aug 2026
Apr – Jun income &
expenses
Q2 update
Nov 2026
Jul – Sep income &
expenses
Q3 update
Feb 2027
Oct – Dec income &
expenses
Q4 + EOPS
May 2027
Jan – Mar + end-of-
period statement
Jan 2028
Final declaration
Replaces Self Assessment return
Not sure if MTD applies to you?
Book a free 20-minute consultation — we'll tell you exactly where you stand.
NIL R£TURN
Contact us and book an appointment
Telephone: 07459 917191
E-mail: info@nilreturn.co.uk
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