search icon

Making Tax Digital, simple with Sage

Whether you're an accountant, bookkeeper, small business owner, landlord or sole trader, get all of the information and the solutions you need to meet MTD legislation.

Get started with Sage

What is Making Tax Digital?

Making Tax Digital (MTD) is HMRC’s plan to digitise the tax system for VAT, Income Tax Self Assessment and Corporation Tax for businesses and individuals. MTD aims to make tax returns simpler and more efficient for everyone.

What is MTD for ITSA?

Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) is the next step in the MTD timeline from HMRC. 

From April 2026 if you have an income of over £50,000 annually, from self employment or property rental, you'll need to:

  • Use MTD-compliant software
  • Go digital with your finances
  • Submit your tax returns quarterly

How does MTD change ITSA?

The three key changes MTD for ITSA will make to your financial management.

Quarterly ITSA submissions

You'll need to submit quarterly summary data to HMRC, rather than one larger end of year ITSA. You'll need to submit the summaries electronically with the help of compliant software.

Submit End of Period Statement

Submit an EOPS (End of Period Statement) direct to HMRC adjusting and confirming your previous summaries as necessary. This will be submitted at the end of the tax year.

Submit final declaration

Submit a final declaration to HMRC confirming other income you have made at the end of the tax year. HMRC will then confirm the tax you owe, payable by 31 January the following tax year.

How will MTD for ITSA help me?

Here are some ways MTD for ITSA will make your financial admin easier so you can get back to focusing on your business.

Save time and simplify

Digital software keeps financial admin all in one place, helps automate repetitive tasks, and provides an overview of challenges and opportunities.

Improve accuracy

It's easier to manage business admin with automated processes, digital records, and an almost instant view of your finances.

Improves data safety

Through two factor authentication (2FA), data encryption, and more, you can rest assured your information is safe and stored securely.

Easier collaboration for accountants and clients

Collaborate with your accountant or clients with ease, through software that allows you to share information instantly.

When do I need to be compliant with MTD?

April 2022
Black icon of calendar

MTD for VAT

Now applies to all VAT-registered businesses.

Small businesses, landlord, or sole trader still looking for an MTD for VAT solution?

April 2026
Black icon of calendar

MTD for ITSA

MTD for Income Tax Self Assessment will apply if you have an annual self-employment or property income of more than £50,000. Learn more about the delay to MTD for ITSA.

April 2026
Black icon of calendar

MTD for Corporation Tax

Making Tax Digital for Corporation Tax to be introduced at the earliest.
April 2027
Black icon of calendar

MTD for ITSA

MTD for Income Tax Self Assessment will apply if you have an annual self-employment or property income of more than £30,000.
TBC
Black icon of calendar

MTD for ITSA partnerships

General partnerships will need to comply with MTD for ITSA in the future.

What does MTD for ITSA mean for me?

Start managing your income and expenses with confidence today. Whether you're an accountant or small business, Sage has an MTD-compliant solution to support you and your business needs.

As an accountant or bookkeeper

MTD for ITSA legislation requires accountants and their clients to use MTD-compliant software to submit quarterly tax returns and store digital records.

  • Sage Accounting software is recognised by HMRC as MTD for ITSA compatible so you can support clients with accounting and tax subscriptions
  • Access comprehensive client management and help all types of clients from landlords to sole traders
  • Get complimentary expert MTD advice and rest assured your firm's needs are taken care of at every step
Get started with Sage for Accountants

As a small business, sole trader, or landlord

Most small businesses, sole traders, and landlords need to begin using MTD-compliant software from 6 April 2026 to submit their quarterly tax returns, as well as store digital records.

  • Sage Accounting is an HMRC-recognised, MTD-ready software which provides compliance for each piece of new MTD legislation as it comes into effect.
  • Store digital records, and keep all your key information in one place
  • Make it simple to submit your MTD-compliant, quarterly tax return when the time comes
Get started with Sage AccountingDownload guide

MTD for ITSA news, advice, and more

Find news and advice to discover more about MTD for ITSA, what it means for you, and make quarterly tax returns stress-free with Sage advice.

Making Tax Digital delays, changes and extensions

Making Tax Digital delays, changes and extensions

Keep up to date with new and potential changes to the government's Making Tax Digital scheme - across VAT, income tax and corporation tax.

Read more
Read more
Making Tax Digital thresholds: VAT, Income Tax and Corporation Tax

Making Tax Digital thresholds: VAT, Income Tax and Corporation Tax

Get the lowdown on thresholds, timelines and other requirements for Making Tax Digital for VAT, Income Tax and Corporation Tax.

Read more
Read more
MTD mythbuster: 9 myths about Making Tax Digital dispelled

MTD mythbuster: 9 myths about Making Tax Digital dispelled

Myths have arisen about Making Tax Digital. In this article, we dispel some mistaken beliefs around MTD for VAT and MTD for Income Tax.

Read more
Read more
Is Self Assessment ending? What Making Tax Digital for Income Tax means for sole traders

Is Self Assessment ending? What Making Tax Digital for Income Tax means for sole traders

Get the lowdown on how Making Tax Digital will change the way sole traders submit tax returns, and what that means for Self Assessment.

Read more
Read more
Is Self Assessment ending? What Making Tax Digital for Income Tax means for landlords

Is Self Assessment ending? What Making Tax Digital for Income Tax means for landlords

Is it really the end of Self Assessment for landlords? Discover how property income will be affected by Making Tax Digital for Income Tax.

Read more
Read more
Let’s get digital: Using technology to make tax easier

Let’s get digital: Using technology to make tax easier

Don't know your EOPS from your Final Declaration? Not to worry, this jargon buster will give you clarity on all things tax.

Read more
Read more
Making Tax Digital for Income Tax delay: Everything you need to know

Making Tax Digital for Income Tax delay: Everything you need to know

MTD for Income Tax has been delayed until April 2026. We cover the details - and why your business should take a digital approach now.

Read more
Read more
Basis period reform and Making Tax Digital: What businesses need to know

Basis period reform and Making Tax Digital: What businesses need to know

What's the basis period reform? Learn what sole traders and businesses need to know, covering accounting periods, overlap profits and more.

Read more
Read more

MTD for ITSA FAQs

Making Tax Digital is HMRC legislation designed to make it easier for tax payers to get their taxes right. By complying with MTD legislation and adopting compliant software, businesses or their accountants can easily view tax information in one place and complete taxes more efficiently.

The first phase of MTD started in April 2019, mandating that most VAT registered businesses with taxable turnover over £85,000 keep digital tax records. In April 2022 MTD for VAT was extended to all VAT registered businesses, including those below the VAT threshold.

These are the upcoming dates to take note of : 

April 2026 : MTD for Income Tax Self Assessment mandates unincorporated (sole traders and partnerships) businesses and landlords with income above £50,000.

April 2026 : The earliest possible date for MTD for Corporation Tax after the government announced it wouldn’t be mandated before then.

April 2027: MTD for Income Tax Self Assessment mandates unincorporated (sole traders and partnerships) businesses and landlords with income above £30,000.

There are also a number of future dates on the HMRC timeline to be confirmed:

MTD for ITSA Sole traders & landlords with income under £30,000
MTD for ITSA General partnerships
MTD for Corporation Tax


With MTD-compliant software you can :

  • Submit quarterly tax returns with ease
  • Reduce the amount of paperwork you have
  • Ensure VAT returns are accurate
  • Easily manage bookkeeping from one place
  • View real-time tax information when you need it
  • Keep track of funds to stay on top of business
  • Get more time back to focus on your business

We’re working closely with HMRC and the UK Government to represent UK businesses and we’ve got over 40 years’ compliance expertise to help accountants, bookkeepers, sole traders, and small business owners meet MTD requirements.

Give Feedback