What is Making Tax Digital for Income Tax Self Assessment?
Making Tax Digital Income Tax Self Assessment (MTD ITSA) applies to sole traders and landlords, with a turnover exceeding a certain amount.
If your turnover during 2024-2025 was £50,000 or more, MTD ITSA applies to you from 6 April 2026
If your turnover during 2025-2026 was over £30,000, MTD ITSA will apply to you from 6 April 2027
So, if you made more than £50k in 2024-2025 (which you will know by now), you will need to get ready for MTD ITSA reporting from April onwards.
If you are new to freelancing, and haven't yet completed a tax return, you won't likely to need to take part - but it's still useful to get prepared, and understand what you might need to do next year.
If your turnover during 2026-2027 is likely to be over £20,000, MTD ITSA is likely to apply to you, although this is not law yet.
If you are a limited company owner/director, MTD ITSA is unlikely to apply to you, but if you are also registered as a sole trader, you may be required to sign up.
The simplest way to check if you are included in these changes is to use HMRC's check if you need to use Making Tax Digital for Income Tax tool.