MTD ITSA starts from 6 April 2026 for self-employed individuals and landlords with qualifying income over £50,000.
From 6 April 2027, the threshold will reduce to over £30,000.
From 6 April 2028, the threshold will reduce again to over £20,000.

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If your self-employment and/or property income is £20,000 or less, MTD ITSA will not apply under the current rules.

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MTD ITSA does not mean paying tax every 3 months.
You will need to keep digital records and send quarterly updates to HMRC using MTD-compatible software.

Your tax will still be paid under the normal Self Assessment payment rules.
The quarterly update deadlines are normally:
7 August
7 November
7 February
7 May

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HMRC has confirmed that for the 2026/27 tax year, there will be no penalty points for late quarterly updates. However, penalties can still apply for late tax returns or late tax payments.

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Even if HMRC does not send you a letter, it is still your responsibility to check whether MTD ITSA applies to you.