If your combined self-employment and rental income exceeds £50,000, you must comply with MTD for Income Tax from 6 April 2026 — quarterly digital submissions through compatible software, plus a final annual declaration. We handle setup, software, quarterly filings and the year-end declaration on fixed fees.
Quick answer: if your combined gross income from self-employment and UK property in the relevant test year exceeds the threshold for the tax year you’re entering, you’re in scope. The threshold tapers down annually:
“Gross income” means the total income before any expenses — not the taxable profit. So a landlord with £45,000 of rent and a freelancer with £8,000 of consulting income breaches the £50,000 threshold and is in scope from April 2026.
HMRC will write to you to confirm your start date based on your most recent Self Assessment return. You don’t need to register separately. If your circumstances have changed since your last return, contact us — getting this wrong can lead to either unnecessary compliance work or a missed start date with penalties.
MTD ITSA replaces the single annual Self Assessment return with three obligations:
Income and expenses must be recorded digitally in MTD-compatible software. Paper records or standalone spreadsheets are no longer sufficient on their own — though a spreadsheet can be used if it connects to compatible bridging software.
A summary of income and expenses is submitted to HMRC for each income source each quarter. The standard reporting periods and deadlines are:
You can elect to use calendar quarters instead (March, June, September, December) — slightly easier alignment with bank statement cycles. Each property and each self-employment is reported separately.
By 31 January following the end of the tax year, a final declaration is submitted confirming the year’s figures, claiming reliefs, and crystallising the final tax liability. This replaces the existing Self Assessment return. Tax payment dates remain unchanged.
HMRC publishes the full list of recognised MTD ITSA software on its website. The practical shortlist for most clients:
Lowest cost (free with NatWest, RBS or Mettle business banking). Best for sole traders and landlords with simple bookkeeping and a single business.
Strongest all-rounder. Best for clients with multiple income sources, employees on payroll, or VAT registration alongside MTD ITSA.
Strong UI and bank feeds. Often a good fit for sole traders moving from spreadsheets who prefer a simpler interface.
Specialist landlord software like Hammock and Landlord Studio integrates property-specific features (tenancy tracking, deposit handling, mortgage interest categorisation) that mainstream packages don’t have. We assess what fits before committing.
HMRC operates a points-based penalty system for late MTD submissions. Each missed quarterly update earns one point. Once you reach the threshold — 4 points for quarterly submitters — a fixed £200 penalty applies, plus a further £200 for each subsequent missed submission until the points are reset.
Points expire after 24 months of full compliance. Late payment of tax attracts interest at the Bank of England base rate plus 4%, and additional penalty rates if unpaid after 30 days, 6 months and 12 months.
Our standard MTD ITSA service includes:
Fees are agreed upfront on a fixed annual basis, with no hidden charges for routine quarterly filings.
Our MTD ITSA service is the right fit for:
If you’re a higher-rate landlord with a portfolio, MTD ITSA is also a natural moment to revisit whether incorporation is more efficient than continuing as an individual landlord under Section 24.
Free tools and guides that pair with MTD ITSA support.
👉 Free download: Get our 62-page 2026/27 UK Landlord Tax Playbook — Section 24, FHL, MTD ITSA, CGT, SDLT, incorporation, IHT and HMRC enquiry triggers (free PDF, no follow-up calls).
Book a Free Discovery Call. We’ll confirm whether you’re in scope, recommend the right software, and quote a fixed annual fee for full MTD ITSA support.
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