Who will be required to register for MTD (Making Tax Digital) and submit reports?

MTD ITSA will be mandatory for:
• Self-employed individuals (sole traders)
• Property owners (landlords) who receive rental income.
But only if their income exceeds the established thresholds:

Implementation date Income threshold (total annual income from self-employment and rental)
from April 2026 over £50,000
from April 2027 over £30,000
from April 2028 over £20,000
If the income is below the specified amounts, switching to MTD is not yet mandatory.

Who will be able to register and submit reports?
Reporting and registration in MTD can be done by:
• The taxpayer themselves (self-employed)
Using approved tax software (MTD-compatible software), which will be integrated with the HMRC system.
• Accountants and tax agents
Any qualified accountant or tax advisor can submit a return on your behalf. To do so, you must provide the agent with authorisation (agent authorisation) through HMRC.

How will MTD ITSA reporting work?
You will need to keep digital records of income and expenses throughout the year.
Four times a year (quarterly) you must send digital reports on income and expenses to HMRC.
At the end of the tax year, you will need to submit a final (annual) report, confirming the results of the year and finalising the tax calculation.

Exemption from MTD
Not everyone is required to use the digital system. There are exceptions:
People who find it difficult or impossible to keep digital records (e.g. the elderly, disabled or those without internet access).
Some taxpayers who are unable to use digital services may be granted an exemption based on an application to HMRC.

Summary:
If your income (from rent or self-employment) exceeds the threshold, you must switch to MTD.
Reports can be submitted either by you or with the help of an accountant/agent.
The system involves quarterly reports and one final annual report.
Persons with low income or limited capabilities may receive exemptions.

This system is designed to simplify tax accounting, reduce errors, and make taxation more transparent for both taxpayers and HMRC.