MTD Requirements for ITSA: Deadlines and How to Stay Compliant

Alan Bermingham

10 Years of Expertise in Fintech Innovation

6 min read

This article explains the MTD requirements for ITSA: keeping digital records, submitting four quarterly updates to HMRC, and filing a Final Declaration by 31 January. It's aimed at sole traders and landlords in the UK, including a specific look at how the rules apply when rental income is combined with self-employment income to determine threshold status. The rollout is phased by income: over £50,000 from April 2026, over £30,000 from April 2027, and an expected £20,000 threshold from April 2028, though that stage still needs legislating, alongside a fixed calendar of quarterly deadlines (7 August, 7 November, 7 February, 7 May) plus 31 January for the Final Declaration. The context is the UK self-assessment system under HMRC, with Pie Tax positioned as the compliant software to manage the whole process from quarterly updates through to Final Declaration.

Let's Break This Down Together

Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) is no longer something coming down the line, it's already here. If your qualifying income is above £50,000, you're in the system from April 2026, and your first quarterly update is due by 7 August.

This article covers the MTD requirements you need to meet, who they apply to (including a dedicated look at MTD ITSA landlord requirements), and the full self-assessment MTD deadline calendar so you never miss a submission.

By the end, you'll know exactly what's required of you and when. Let's dive in.

What Are the MTD Requirements?

The core MTD requirements are the same whether you're a sole trader, a landlord, or both. You need to:

Keep digital records of your income and expenses using MTD-compatible software
Submit 4 quarterly updates to HMRC each tax year
Submit a Final Declaration by 31 January following the end of the tax year, replacing the old Self Assessment return

You're required to meet these MTD ITSA requirements if your gross qualifying income from self-employment and/or property is above £50,000, based on your 2024-25 Self Assessment return. If your income sits between £30,000 and £50,000, your MTD requirements start from April 2027, based on your 2025-26 return. HMRC has confirmed a £20,000threshold from April 2028, though this stage still needs to be legislated.

If you have more than one qualifying trade, or both a trade and a property business, you'll need separate quarterly updates for each income source under your MTD requirements, not one combined submission. For a full walkthrough of how to get set up, our guide on how to prepare for MTD for Income Tax covers the practical steps in more depth.

Two colleagues discussing digital tax correspondence together

MTD ITSA Landlord Requirements

If you're a landlord, the MTD ITSA landlord requirements work the same way as for sole traders, with a couple of details worth knowing. Your rental income is added to any self-employment income when working out whether you cross the £50,000 or £30,000 threshold, so a landlord earning £28,000 in rent and £24,000 from a trade is over the first threshold on a combined £52,000, even though neither income alone would qualify.

Each property business is treated as its own income source, so if you let property jointly with someone else or run more than one property business, each one may need its own quarterly updates. Landlords who also have self-employment income will be submitting updates for both income sources in parallel. Our straightforward guide to what MTD is covers who's affected and when in more detail.

General partnerships are deferred from MTD for Income Tax indefinitely, with no mandation date currently set, and limited companies are unaffected, as they already fall under MTD for VAT rather than MTD for ITSA.

Calculating income tax before the filing deadline

The Self-Assessment MTD Deadline Calendar

Once you're in the system, the self-assessment MTD deadline pattern repeats every tax year: 4 quarterly updates plus 1 Final Declaration. The standard MTD deadline dates are:

7 August – Quarter 1 (6 April to 5 July)
7 November – Quarter 2 (6 July to 5 October)
7 February – Quarter 3 (6 October to 5 January)
7 May – Quarter 4 (6 January to 5 April)
31 January – Final Declaration for the tax year just ended

These MTD deadlines apply regardless of when your mandatory start date falls, so once you're in, the calendar is fixed. If your software allows it, you can align your update periods to calendar quarters to make tracking easier. Our Making Tax Digital software guide walks through how different tools handle this.

For a broader view of what's changing and why, our guide on Making Tax Digital for Income Tax covers the wider context for sole traders and landlords, and our piece on the MTD threshold and turnover rule changes breaks down exactly what the £50,000 and £30,000 bands mean for you.

Planning ahead for the income tax filing deadline

What Happens If You Miss an MTD Deadline?

Missing a submission adds a penalty point under HMRC's points-based system. Once you hit the threshold, you'll face a £200 fine, plus another £200 for every further missed update. Late payment penalties and interest apply separately if you don't pay what you owe on time.

Points expire after 2 years of on-time submissions, so consistent compliance clears your record over time. If you're digitally excluded, for example due to unreliable internet, a disability, or your beliefs, you may be able to apply for an exemption rather than face penalties for missed MTD deadlines.

How to Meet Your MTD Requirements

Getting compliant doesn't need to be complicated. Choose MTD-compliant software well ahead of your start date, digitise your records as you go rather than in a last-minute scramble, and let it handle your quarterly updates and Final Declaration in one place. Our guide on digital compliance rules for the self-employed covers what this looks like in practice.

Stay on Top of Your MTD Requirements with Pie Tax

Pie Tax, the UK's first personal taxation app, is now self assessment software built to handle MTD requirements from quarterly updates through to your Final Declaration. See how Pie Tax works to get a sense of the real-time tax tracking, or read why sole traders and landlords choose Pie Tax for MTD compliance.

Get started with Pie Tax for free, or learn more about the team behind it on our About Us page.

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Frequently Asked Questions

What are the MTD requirements for ITSA?

You need to keep digital records, submit 4 quarterly updates a year using MTD-compatible software, and complete a Final Declaration by 31 January. This applies once your qualifying income is above £50,000 (from April 2026) or £30,000 (from April 2027).

Has MTD for ITSA been delayed?

No. The current thresholds and start dates are fixed: April 2026 for income over £50,000, and April 2027 for income over £30,000. There's no indication of a further delay.

What are the MTD ITSA landlord requirements if I have more than one property?

Each property business generally needs its own quarterly updates, and rental income is combined with any self-employment income to determine whether you meet the qualifying threshold.

What's the next self-assessment MTD deadline?

If you're already in the system, your next quarterly update is due on whichever of 7 August, 7 November, 7 February, or 7 May falls next, followed by your Final Declaration on 31 January.

What happens if I miss an MTD deadline?

You'll receive a penalty point, and a £200 fine once you reach the threshold, with a further £200 for each additional missed update after that.

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