MTD for Income Tax is now live — what you need to do today

Today, 6 April 2026, marks the start of Making Tax Digital for Income Tax Self Assessment (MTD ITSA). For sole traders and landlords with qualifying income above £50,000, this is no longer something to prepare for — it is now a legal requirement.

Who must comply from today?

Phase 1 of MTD ITSA applies to self-employed individuals and landlords whose total qualifying income exceeds £50,000 in the 2024–25 or 2025–26 tax years. If that describes you, you are in scope from 6 April 2026.

What changes from today?

Under MTD ITSA, the annual Self Assessment tax return is replaced by a new quarterly reporting cycle. Here is the new rhythm:

• Four quarterly updates per year — submitted digitally via MTD-compatible software, summarising your income and expenses for each quarter.
• End of Period Statement (EOPS) — submitted at the end of the tax year to confirm your figures and claim any allowances.
• Final Declaration — replaces the traditional Self Assessment tax return, confirming your total income from all sources and triggering your tax calculation.

Quarterly updates are due within one month of each quarter end. The quarter dates are: 5 July, 5 October, 5 January, and 5 April.

What you need to do right now

1. Register for MTD ITSA with HMRC
   If you have not already done so, register via the HMRC online services portal. This is a separate registration from your existing Self Assessment account.
2. Switch to MTD-compatible software
   You must keep digital records and submit quarterly updates using software that HMRC recognises as MTD-compatible. Check HMRC's approved software list.
3. Start keeping digital records from today
   All income and expenses from 6 April 2026 onwards must be recorded digitally. Spreadsheets without bridging software are not acceptable.
4. Talk to your accountant
   If you work with an accountant, they will guide you through the transition. Many accountants are already set up to handle MTD submissions on behalf of clients.

How Invoa helps

Invoa keeps a timestamped digital record of every invoice you create — which forms the core of your MTD income records. Every invoice is stored with its date, amount, VAT breakdown, and client details, giving you a clean audit trail ready for quarterly submissions.

VAT-compliant PDF invoices, automated payment reminders, and a running record of paid and outstanding amounts mean you always know where your income stands — exactly what MTD requires.

This article is for general information only and does not constitute tax or legal advice. If you are unsure whether MTD ITSA applies to your specific circumstances, consult a qualified accountant or tax adviser.