6 min read · Updated 2026-06-17
Making Tax Digital for Income Tax — often shortened to MTD for ITSA — is the biggest change to how the self-employed and landlords report tax in a generation. It started on 6 April 2026, and the first quarterly deadline falls on 7 August 2026. If your income is over the threshold, the old once-a-year Self Assessment is no longer how you report.
MTD for Income Tax is being phased in by income level. What matters is your qualifying income — your gross income (before expenses) from self-employment and property combined, not your profit.
So a sole trader turning over £40,000 with £25,000 of rent is already in scope from April 2026, even if their profit is modest. It's the gross figure that counts.
MTD for Income Tax has three moving parts: keep digital records of your business income and expenses, send HMRC a summary update once a quarter, and confirm everything with a year-end Final Declaration that replaces the old Self Assessment return.
A quarterly update isn't a mini tax return — it's running totals of your income and expenses by category, sent from MTD-compatible software. You don't pay tax on each update; it's a reporting rhythm, not four bills.
Standard quarters end on 5 July, 5 October, 5 January and 5 April, and each update is due roughly a month later. For the 2026/27 tax year the dates are:
The two things that make MTD painless are knowing your numbers and keeping them current, rather than reconstructing a shoebox of receipts every quarter. If you already understand your income and expenses, the quarterly updates are mostly a matter of pressing send on figures you've kept along the way.
Plot is built for exactly this: free calculators and reliefs finders so you understand your position, plus affordable digital record-keeping that keeps your running income, expenses and tax live through the year — so each quarterly deadline is a non-event.
See your tax with the free calculator
From 6 April 2026 if your combined gross self-employment and property income is over £50,000; from April 2027 if it's over £30,000; and from April 2028 if it's over £20,000. Below £20,000 you're not yet mandated.
Your gross income before expenses — turnover from self-employment plus gross rents — added together. It's not your profit, so you can be in scope even if your profit is small.
For people in MTD, the annual return is replaced by four quarterly updates plus a year-end Final Declaration. The Final Declaration is where you confirm the full picture and your tax is calculated, due by 31 January as before.
MTD uses a points-based penalty system: you accrue a point for each missed deadline and a fixed penalty applies once you reach the threshold. Keeping records current and submitting on time avoids it entirely.