MTD for Income Tax is here. Are you ready?
Making Tax Digital for Income Tax Self Assessment (MTD ITSA) is here. Since April 2026, HMRC now requires self-employed individuals and landlords with income over £50,000 to maintain digital records and file quarterly updates — replacing the traditional annual Self Assessment return.
Late or missed submissions carry penalty points and financial fines, and the income threshold drops in both 2027 and 2028, widening the net considerably. NIL R£TURN takes care of everything — from setting up compliant digital records to filing every quarterly update on time, every time.
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 30-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
The company
We sort the numbers. You run the business.