Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) is now live for higher-earning sole traders and landlords. Since 6 April 2026, HMRC has required anyone with qualifying income above £50,000 to keep digital records and send quarterly updates through MTD-compatible software. If your qualifying income is between £30,000 and £50,000, you must join from 6 April 2027. Those with income below £30,000 remain on self-assessment for now.

For women running their own business, this shift changes how often you report to HMRC, the tools you use, and the discipline you need around recordkeeping. The system is designed to reduce errors and give you a clearer view of your tax position throughout the year. If your income is above £50,000 and you have not yet signed up, you should act immediately to avoid penalties. Our Making Tax Digital sole trader checklist for 2026 covers the practical first steps.

Women accounted for approximately 33% of the UK’s 4.3 million self-employed workers in 2024, according to ONS Labour Force Survey data. Many of these women run sole trader businesses that will eventually fall within the scope of Making Tax Digital self-assessment. HMRC estimates (2024) that roughly 1.2 million taxpayers will be mandated into MTD for ITSA from April 2026, with a further 1.8 million joining from April 2027.

Understanding Making Tax Digital self-assessment

MTD for ITSA is the next stage of HMRC’s Making Tax Digital programme. It replaces the traditional annual self-assessment tax return for many taxpayers with a system of digital recordkeeping and regular reporting. For women founders, this means choosing tools that fit around your working pattern rather than leaving everything to a single annual deadline.

Under MTD, you keep your business and property income records in software that connects directly to HMRC. Instead of filing one tax return after the tax year ends, you send quarterly updates of your income and expenses. You still submit an end-of-period statement and a final declaration, and the deadline for paying any tax due remains 31 January after the tax year ends.

The principles are already familiar to VAT-registered businesses. MTD for VAT has required most VAT-registered businesses to keep digital records and submit returns through compatible software since April 2019.

Who must join and when

You must follow MTD for ITSA rules if your total qualifying income from self-employment and property is above the threshold in a tax year. Qualifying income is your gross income before expenses, not your profit. If you have both self-employment and property income, you add them together.

• From 6 April 2026: mandatory if your qualifying income is over £50,000.
• From 6 April 2027: mandatory if your qualifying income is over £30,000.
• Below £30,000: no mandatory date yet; continue with self-assessment.

Many women-led businesses in consulting, creative services, childcare and professional services fall into the £30,000-£50,000 band, so the April 2027 date is likely to affect a large number of women founders. If your income drops below the threshold after you have joined, HMRC has said you may be able to leave MTD. The exact process will be confirmed closer to mandation for the lower threshold.

How quarterly reporting works

Once you are in MTD for ITSA, you must send HMRC a quarterly update using compatible software. Each update covers a three-month period and summarises your income and allowable expenses. You do not pay tax quarterly; the updates are for reporting only.

For the 2026/27 tax year, quarterly updates are due by 5 August 2026, 5 November 2026, 5 February 2027 and 5 May 2027. After the tax year ends, you send an end-of-period statement by 31 January 2028, make any adjustments, and then submit a final declaration. HMRC uses this information to calculate your tax bill. You still pay any balancing payment and any payments on account by the usual deadlines of 31 January and 31 July.

Digital recordkeeping rules

MTD requires you to keep your records digitally. This means recording income and expenses in MTD-compatible software, not just on paper or in a standalone spreadsheet. You can still use spreadsheets if they are linked to software that submits data to HMRC.

Your software must be able to send quarterly updates and your end-of-period statement to HMRC. HMRC publishes a list of recognised software providers, including free and low-cost options. Choose one that suits the size and complexity of your business. If you work from home, make sure you understand which home working expenses you can claim through HMRC.

Partnerships and MTD for ITSA

Partnerships are not included in the 2026 or 2027 start dates. HMRC intends to introduce MTD for ITSA for partnerships later, with general partnerships expected to join from April 2028 at the earliest. Women-led partnerships in sectors such as law, accountancy, marketing and design should continue filing partnership returns and self-assessment returns as usual until then.

How women-led businesses can prepare

Even if your start date is a year or two away, early preparation pays off. Many women in business juggle self-employment with caring responsibilities or part-time employment, so building a simple, repeatable recordkeeping habit now will save time later.

• Review your recordkeeping. Move towards digital records now so the transition is smooth.
• Check your software. Ask your provider whether your current accounting software is MTD-compatible.
• Separate your finances. Open a dedicated business bank account if you do not already have one, to make tracking income and expenses easier.
• Test the process. If your mandatory start date is 6 April 2027, you may be able to join HMRC’s pilot voluntarily before then.
• Save for tax. Set aside money for tax throughout the year, even though payments remain annual.

For a fuller picture of what you can offset against tax, read our guide to allowable expenses for the self-employed.

What stays the same

MTD changes how you report, not necessarily how much tax you pay. The tax year still ends on 5 April, the payment deadline is still 31 January, and you can still claim the same allowable expenses. Women in business keep the same responsibility for making sure records are accurate, so good bookkeeping habits remain essential.

Your next steps

Making Tax Digital self-assessment is now a reality for higher-earning sole traders and landlords, and it is approaching for many more. Check your qualifying income against the £50,000 and £30,000 thresholds, choose MTD-compatible software, and start keeping digital records before your mandation date. Acting now will help you avoid penalties and keep your business finances under control.