Making Tax Digital for Income Tax Self Assessment: key dates and deadlines

Self-employed sole traders, landlords and others who currently report taxable income of more than £10,000 a year via Self Assessment (thought to number about 4.2m people) should be aware of and be preparing for a big…

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Last Updated: 27th July 2022   |   Created: 27th July 2022

Self-employed sole traders, landlords and others who currently report taxable income of more than £10,000 a year via Self Assessment (thought to number about 4.2m people) should be aware of and be preparing for a big change heading their way as a result of Making Tax Digital.

Making Tax Digital is a significant government initiative that will digitise the UK tax system for users and that process is already underway. VAT-registered businesses have already been affected by Making Tax Digital changes and Income Tax Self Assessment taxpayers will be next.

Making Tax Digital is being introduced because the government wants to make it easier for people and businesses to manage their tax affairs more easily and efficiently, while helping to prevent basic tax errors that cost the UK many billions of pounds a year in lost tax revenue.

Making Tax Digital for ITSA: what will change?

The introduction of Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) will bring in new reporting requirements. The planned changes mean Income Tax Self Assessment taxpayers won’t any longer be required to file a Self Assessment tax return each year.

When MTD for ITSA is introduced, instead, you’ll need to maintain digital records of your income and expenses and send digital quarterly summaries to HMRC. To do this and so that you comply with MTD for ITSA requirements, you’ll need to use compatible third-party software

Based on the figures you send each quarter, you’ll get an estimate of how much tax you owe. Then at the end of the tax year, you’ll need to make an end of period statement (EOPS), confirming the figures you’ve submitted, with any accounting adjustments made (ie allowances, reliefs, etc). You’ll also need to submit your final declaration and HMRC will tell you how much tax you owe for that tax year.

You can apply for MTD for ITSA exemption if it’s not practical for you to use software to keep digital records or submit data to HMRC digitally, because of your age, disability, location (ie poor internet connection) or other justifiable reason (which can include religion). If your reason is accepted, HMRC will provide an alternative solution.

Need to know! If you currently keep financial records in paper form (unless you have a justifiable reason for exemption – see above), you’ll need to start using MTD-compliant software. Non-compliance may result in penalties. 

When is MTD for ITSA being introduced?

MTD for ITSA is being introduced on 6 April 2024, so you have until then to get the necessary software and sign up. In the meantime, if you want to get used to the new Making Tax Digital for ITSA recording and reporting requirements, you may be able to sign up now for MTD for ITSA.

You need to be a UK resident who is already registered for Self Assessment. Your accounting period must align with the UK tax year (ie 6 April to 5 April), you must have submitted at least one Self Assessment tax return previously and be already keeping digital records. Your tax records must be up to date and you cannot have any outstanding tax bills.

MTD for ITSA changes will impact members of ordinary business partnerships with more than £10,000 a year of taxable income from 6 April 2025.

Need to know! You can visit government website GOV.uk to sign up now for Making Tax Digital for Income Tax Self Assessment. If you need to report income from other sources (eg wages from employment) you can’t currently sign up for MTD for ITSA.

When must you send MTD for ITSA data to HMRC?

You’ll need to send a summary of your income and expenses online via your HMRC digital account at the end of each quarter. You’ll get up to a month after the end of each quarter to do this. The standard quarterly periods and deadlines in each UK tax year are:

Quarterly periodQuarterly deadline
6 April to 5 July5 August
6 July to 5 October5 November
6 October to 5 January5 February
6 January to 5 April 5 May

According to HMRC, at a later date, MTD ITSA taxpayers “will be given the option to use calendar quarters”, although that means none of the above quarterly filing deadlines will change.

Need to know! As with the current system, late submissions or payments under MTD for ITSA may result in penalty fines.

What is the deadline for paying my MTD for ITSA tax bill?

You must pay your MTD for ITSA tax bill on or before 31 January in the following tax year. So, for the 2024/25 tax year, you must pay your tax bill on or before 31 January 2026.

Despite the introduction of MTD for ITSA, millions of taxpayers still need to budget effectively and perhaps put away some money each month from their income to ensure that they have enough money to pay their tax bill. Some things never change.

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Blog content is for information purposes and over time may become outdated, although we do strive to keep it current. It's written to help you understand your Tax's and is not to be relied upon as professional accounting, tax and legal advice due to differences in everyone's circumstances. For additional help please contact our support team or HMRC.

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