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Free Resource Centre — 18 Guides

The Complete MTD ITSA Knowledge Hub

Everything UK landlords, sole traders, and freelancers need to know about Making Tax Digital for Income Tax — from what it is to how to register, in plain English.

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April 2026
MTD ITSA mandatory for income over £50,000
4×/year
Quarterly submissions replace the annual tax return
£19.99
AccTek fixed monthly fee — all MTD compliance included

Complete Making Tax Digital Guide — 8 Core Articles

Start here. These eight guides cover everything you need to understand MTD ITSA from the ground up.

1

What is Making Tax Digital?

The big picture — what MTD is, why HMRC introduced it, how it differs from Self Assessment, the quarterly reporting cycle, and common misconceptions explained.

OverviewHMRCQuarterly cycle
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2

MTD for Landlords: Who Must Comply?

Income thresholds (£50k, £30k, £20k), what counts as qualifying income, how combined income sources are assessed, exemptions, and common threshold mistakes.

ThresholdsExemptionsLandlords
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3

MTD ITSA Start Dates and Deadlines

Confirmed rollout dates for April 2026 and April 2027, the full quarterly submission calendar, step-by-step preparation checklist, and what happens if you're not ready.

April 2026TimelineDeadlines
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4

What Digital Records Must Landlords Keep?

Exactly what income and expense records landlords must maintain digitally — by property, by category, Section 24 mortgage interest, capital vs revenue, and retention periods.

RecordsProperty incomeSection 24
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5

MTD Quarterly Reporting Explained

How quarterly updates work step by step, all four submission deadlines, what each update contains, what HMRC does with it, and how the Final Declaration works at year end.

Quarterly updatesFinal declarationSubmissions
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6

MTD ITSA Penalties and Fines

How HMRC's points-based penalty system works, when the £200 fine triggers, late payment charges, inaccuracy penalties, how to appeal, and how to avoid every fine.

PenaltiesPoints systemLate filing
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7

MTD ITSA Software Requirements

Why HMRC-approved software is legally required, comparison of Xero, QuickBooks, FreeAgent and Sage, whether spreadsheets are compliant, and how to choose the right option.

XeroSoftwareHMRC API
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8

How to Prepare for MTD — Use an Accountant

Why DIY MTD is risky, everything AccTek does for you, how our pricing compares to traditional accountants, and how to get started from £19.99/month.

AccTekPricingGet started
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Deep-Dive Questions — 10 Supporting Guides

Specific questions answered in full detail. Jump straight to what you need.

📊
Can Landlords Use Spreadsheets for MTD?
Yes — but only with bridging software. Full explanation of the rules, bridging options, and when dedicated software is the better choice.
Read guide 💷
What Income Counts Toward the £50k Threshold?
A complete breakdown of qualifying vs non-qualifying income — rental, self-employment, PAYE, dividends, pensions — with worked examples.
Read guide 🏘️
Do Joint Property Owners Need MTD?
How income is split between joint owners, individual threshold assessment, married couple rules, and whether both owners need separate registrations.
Read guide 📋
How to Register for MTD ITSA with HMRC
Step-by-step registration guide — what you need, how to sign up via Government Gateway, how to authorise your software, and common mistakes to avoid.
Read guide ⏰
What Happens If You Miss an MTD Submission?
Exactly what happens when you miss a deadline — the penalty point escalation path, what to do next, how to appeal, and how points expire.
Read guide 🏠
MTD Checklist for Landlords
A complete interactive preparation checklist — threshold confirmation, software setup, HMRC registration, property records, and quarterly deadline reminders.
View checklist 💼
MTD Checklist for Freelancers and Sole Traders
Everything freelancers, consultants, and sole traders need to do before April 2026 — software, registration, records, allowable expenses, and deadlines.
View checklist ✏️
How to Correct an MTD ITSA Mistake
Three methods for correcting errors in quarterly updates and the Final Declaration — when penalties apply, how to amend in Xero, and voluntary disclosure explained.
Read guide ✅
What is the MTD ITSA Final Declaration?
What the Final Declaration contains, when it is due (31 January), how it replaces the Self Assessment return, and what year-end adjustments are made.
Read guide 📄
What is an End of Period Statement (EOPS)?
What the EOPS was, whether it is still required under current MTD ITSA rules (spoiler: mostly no), and what replaced it in the simplified filing sequence.
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Frequently Asked Questions About MTD ITSA

The most common questions from UK landlords, sole traders and freelancers about Making Tax Digital.

Do landlords need MTD if income is below £50,000?
Not immediately. The April 2026 mandate applies only to those with qualifying gross income over £50,000. The threshold drops to £30,000 from April 2027 and is expected to fall further to £20,000 in 2028. Remember: the threshold is always based on gross rental income before expenses — not your profit. A landlord receiving £55,000 rent but spending £20,000 on costs is still above the threshold.
Can I still use spreadsheets for MTD?
Yes, but not alone. A plain Excel or Google Sheets spreadsheet is not MTD-compliant by itself. To be compliant, it must be connected to HMRC-approved bridging software that submits your quarterly data via the MTD API. Most landlords and sole traders find dedicated software like Xero simpler and equally cost-effective — and AccTek includes Xero in all client plans. Full details: Can landlords use spreadsheets for MTD?
What happens if I miss a quarterly MTD update?
You receive one penalty point. No financial penalty applies until you accumulate four points — roughly one year of consistent non-compliance. At four points, a £200 fine triggers, with a further £200 for every subsequent late submission. Points expire after 24 months of no further misses (if below the threshold) or after four consecutive on-time submissions once fines have begun. Full details: What happens if you miss an MTD submission?
When does MTD ITSA become mandatory?
MTD ITSA is mandatory from 6 April 2026 for those with qualifying income over £50,000. The threshold drops to £30,000 from 6 April 2027, with a further extension to £20,000 expected but not yet confirmed. Critically, digital records must begin from day one of the relevant tax year — not just by the first submission deadline in August. Full timeline: When does MTD ITSA start?
Does MTD ITSA apply to limited companies?
No. MTD ITSA is a personal income tax obligation and does not apply to limited companies. It affects individuals who file Self Assessment with income from self-employment or UK property. A separate MTD for Corporation Tax programme may apply to companies in future, but this has not yet been legislated or given a start date.
How do I register for MTD ITSA with HMRC?
You register through your Government Gateway account using your UTR (Unique Taxpayer Reference) and National Insurance number, then authorise your MTD software to connect to HMRC's API. The process takes around 20 minutes and HMRC typically confirms within 3–5 working days. AccTek handles the entire registration for all clients as part of onboarding. Step-by-step guide: How to register for MTD ITSA with HMRC.
Is MTD the same as paying tax four times a year?
No — this is one of the most common misconceptions. Quarterly updates are reporting submissions only, not payment events. You report your income and expenses four times a year so HMRC can maintain a running estimate of your likely tax bill. Your actual tax payment deadline remains 31 January, exactly as under Self Assessment. Payments on account (if applicable) also continue unchanged.
What software do I need for MTD ITSA?
You must use HMRC-approved software that submits quarterly updates directly to HMRC via the MTD API — you cannot file through HMRC's own website. Leading options include Xero, QuickBooks, FreeAgent, and Sage. AccTek includes a Xero subscription in all client plans at no extra cost, fully configured for your income sources. Full comparison: MTD ITSA software requirements.

Who Is This Hub For?

🏠
Landlords
If your gross rental income exceeds £50,000, MTD ITSA is mandatory from April 2026. This hub covers everything specific to property income — records, expenses, Section 24, joint ownership, and checklists.
💼
Sole Traders & Freelancers
Self-employed individuals with turnover above the threshold must comply. We cover sole trader-specific records, expense categories, MTD registration, and the freelancer preparation checklist.
🔗
Mixed-Income Earners
If you have both rental and self-employment income, the combined total determines your threshold. Our income threshold guide and joint ownership guide are essential reading.

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