Who Needs to Register for Making Tax Digital (MTD) for ITSA?

Making Tax Digital (MTD) is transforming the way many individuals report their income to HMRC. From April 2026, certain self-employed individuals and landlords will be required to follow new digital tax reporting rules.

If you currently submit a Self Assessment tax return, you may be wondering whether these new requirements apply to you.

In this guide, we explain who needs to register for Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) and how to prepare for the changes.

What Is MTD for ITSA?

Making Tax Digital for Income Tax Self Assessment is part of the UK government’s plan to modernise the tax system.

Under the new rules, taxpayers will be required to:

• Keep digital records of income and expenses

• Use MTD-compatible accounting software

• Submit quarterly updates to HMRC

• Submit a final declaration at the end of the tax year

These changes aim to improve accuracy and make tax reporting more efficient.

Who Needs to Register for MTD for ITSA?

From April 2026, you will need to register for MTD for ITSA if:

• You are self-employed or a landlord

• Your combined income from self-employment and property exceeds £50,000 per year

This means many individuals currently completing Self Assessment tax returns will move to the new digital system.

What Happens From April 2027?

From April 2027, the threshold will be reduced to £30,000.

This means that even more self-employed individuals and landlords will need to register for MTD for ITSA and follow digital reporting requirements.

If your income is close to this level, it may be beneficial to start preparing early.

Who Does Not Need to Register Yet?

You may not need to register for MTD immediately if:

• Your self-employment and property income is below the threshold

• You do not receive income from self-employment or rental property

• You qualify for a specific HMRC exemption

However, many taxpayers will eventually transition to the new system as Making Tax Digital expands.

Why You Should Start Preparing Now

Although MTD for ITSA will become mandatory in April 2026, preparing early can make the transition much easier.

Starting now allows you to:

• Set up MTD-compatible accounting software

• Organise your digital bookkeeping records

• Understand the quarterly reporting process

• Avoid last-minute stress and potential HMRC penalties

Early preparation ensures your tax reporting is accurate and fully compliant.

How Sigma Accounting Can Help

Many self-employed individuals and landlords are concerned that Making Tax Digital will increase their administrative workload.

At Sigma Accounting, we help clients across the UK prepare for the transition to MTD.

Our services include:

• Setting up MTD-compatible accounting software

• Transitioning from spreadsheets to digital bookkeeping

• Managing quarterly submissions to HMRC

• Completing the final tax declaration

• Ensuring full compliance with HMRC regulations

Our goal is to make the move to digital tax reporting simple and stress-free.

Need Help Registering for MTD?

If you are a self-employed individual, freelancer, or landlord, it’s important to understand whether you will need to register for Making Tax Digital before the April 2026 deadline.

At Sigma Accounting, we support clients across the UK with preparing for MTD and managing their tax obligations.

📞 +44 7907 291967

📧 office@sigma-accounting.co.uk

🌐 www.sigma-accounting.co.uk

You can also book a free consultation to find out exactly how MTD for ITSA will affect you.