Making Tax Digital for Income Tax Self Assessment (MTD ITSA) is HMRC's programme to replace the annual Self Assessment return with four quarterly digital submissions per year. Landlords with gross rental income above £50,000 must comply from 6 April 2026. The threshold drops to £30,000 from 6 April 2027.
HMRC has confirmed the April 2026 mandatory start for landlords above £50,000 gross income. This date has been delayed twice, it will not be moved again. If you are in scope, enrol voluntarily now to trial the software before penalties apply.
Who is in scope?
- Gross rental income above £50,000 in the 2024–25 tax year → mandatory from 6 April 2026
- Gross rental income above £30,000 in the 2025–26 tax year → mandatory from 6 April 2027
- Combined rental and self-employment income above the threshold → counts towards the threshold
- Jointly owned properties: each co-owner's share counts separately
Quarterly update deadlines
| Quarter | Period | Submission deadline |
|---|---|---|
| Q1 | April–June | 5 August |
| Q2 | July–September | 5 November |
| Q3 | October–December | 5 February |
| Q4 | January–March | 5 May |
| Final declaration | Full year | 31 January (following year-end) |
Compatible software
HMRC provides no free MTD ITSA software. You must use HMRC-approved third-party software. Major providers include Xero, QuickBooks, FreeAgent, Sage, and TaxCalc. Bridging software is also permitted, connecting a compliant spreadsheet to HMRC's API via a digital link, suitable for landlords who prefer not to switch from Excel.
Points-based penalty system
- Each missed quarterly submission deadline earns 1 penalty point
- At 4 points: automatic £200 financial penalty
- Every subsequent missed deadline: additional £200
- Points reset after 24 consecutive months of full compliance
- Late payment interest and surcharges apply separately
Calculate your 2024–25 gross rental income. If above £50,000, choose compatible software and begin using it for 2025–26 records. Voluntary early enrolment allows you to trial quarterly submissions with no penalty risk before April 2026.