Making Tax Digital for Income Tax and Self Assessment (ITSA)

From April 2026, self-employed individuals and landlords earning £50,000+ annually must use MTD-compatible software to keep digital records and submit quarterly income and expense updates to HMRC. These changes will replace the traditional Self Assessment tax return. Read on to find out more..

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What's Changing?

From April 2026, self-employed individuals and landlords with a combined annual income of £50,000 or more will be required to:

Maintain digital records using MTD-compatible software.
Submit quarterly updates of income and expenses to HMRC.

In addition, they will need to provide end-of-year information covering other income sources, such as:

Dividends
Bank interest
Employment income
Capital gains and other miscellaneous income

Once submitted, HMRC will generate a tax calculation, which you can review before filing a Final Declaration to confirm all income has been reported.

What Do I Need to Submit in my Quarterly Updates?

From April 2026, you'll need to submit cumulative quarterly updates that include:

Total income for the year to date
A breakdown of business expenses (across ~16 categories)

These updates must be submitted at least once per quarter, but you can submit more frequently if preferred. Each update:

Supersedes the previous one
Triggers a new real-time tax calculation, helping you track and budget for your tax liability

Quarterly Update Periods:

Quarter 1: 6 April – 5 July
Quarter 2: 6 April – 5 October
Quarter 3: 6 April – 5 January
Quarter 4: 6 April – 5 April (end of tax year)

Note: Businesses with a combined income under £90,000 will have the option to submit consolidated expense totals rather than a detailed breakdown.

What is the Final Declaration?

After submitting your four quarterly updates, you must:

Enter any additional income (e.g. bank interest, employment income, capital gains).
Review the HMRC-generated tax calculation.
Submit a Final Declaration, confirming all income for the tax year has been declared.

This replaces the current Self Assessment tax return process.

How Can QuickFile Help?

QuickFile has developed a fully-featured solution for MTD for ITSA, designed to help self-employed individuals and landlords stay compliant with the new requirements.

We are a listed software provider on HMRC's Software Choices page and will be supporting the MTD ITSA pilot scheme starting April 2025.

If you're interested in joining the pilot scheme, please complete our eligibility form to register your interest and receive more information.

Getting Started

To take the first step and get your business or accounting practice ready for Making Tax Digital for Income Tax and Self-Assessment, please choose from one of the following options: