Questions and Answers
When do I need to sign up for Making Tax Digital for Income Tax Self-Assessment?
I know Making Tax Digital (MTD) for income tax self-assessment is on the way. What do I need to do and when will I need to sign up?
By Catherine Heinen, FCCAMaking Tax Digital for Income Tax Self-Assessment (ITSA) has a staggered start date depending on your business’ qualifying income. The first date you may need to comply is April 2026, when sole traders and landlords with qualifying income above £50,000 need to sign up.
Qualifying income is your total income from all relevant sources in a tax year. This will usually be self-employment and/or property income added together. Income from other sources including partnerships, employment (PAYE), dividends and bank interest will be included.
It is possible to sign up for MTD ITSA early, speak to your accountant if you want to.
If you’re not sure whether your qualifying income will mean you need to sign up for MTD, this is the process:
- File you 2024/25 tax return by 31st January 2026 deadline
- HMRC will assess the information reported for 2024/25 and check if your qualifying income reaches the level that you need to sign up for MTD
- HMRC will write to you to confirm you must comply by 6th April 2026
- Sign up for MTD ITSA
Click here to find out more about Making Tax Digital.
How TaxAssist Accountants can help
Our experts can provide support on your Making Tax Digital journey and make sure you meet your obligations. To book a free initial consultation, contact our friendly and experienced team on 0117 370 0016 or use our online contact form.
Date published 13 Jun 2024
This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.
Catherine Heinen, FCCA
Catherine is a Technical Content Writer at TaxAssist Accountants, and a qualified accountant. With experience working at two accountancy practices in the UK top 50 accountancy firms according to Accountancy Age, Catherine has significant experience in accounts, tax returns and advising clients. Catherine ensures businesses, business owners and individuals are kept up to date and informed by providing concise and informative technical material.
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