{"id":19023,"date":"2026-07-27T16:55:47","date_gmt":"2026-07-27T11:25:47","guid":{"rendered":"https:\/\/befreeltd.com\/uk\/?p=19023"},"modified":"2026-07-27T17:48:27","modified_gmt":"2026-07-27T12:18:27","slug":"mtd-itsa-threshold-guide","status":"publish","type":"post","link":"https:\/\/befreeltd.com\/uk\/resources\/blogs\/mtd-itsa-threshold-guide\/","title":{"rendered":"MTD ITSA&#8217;s \u00a320,000 Threshold: What the Next Two Waves Mean for Your Practice"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"19023\" class=\"elementor elementor-19023\" data-elementor-post-type=\"post\">\n\t\t\t\t<div class=\"elementor-element elementor-element-6c34a537 e-flex e-con-boxed e-con e-parent\" data-id=\"6c34a537\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-67797eaf elementor-widget elementor-widget-text-editor\" data-id=\"67797eaf\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Making Tax Digital for Income Tax Self Assessment (<a href=\"https:\/\/befreeltd.com\/uk\/resources\/blogs\/mtd-for-income-tax\/\">MTD for ITSA<\/a>) is already live for the highest-income cohort, and two further waves are on the way. From April 2027, the threshold drops to \u00a330,000. From April 2028, it falls again to \u00a320,000, pulling thousands more sole traders and landlords into quarterly digital reporting. For UK accounting practices, this is not a distant compliance date. It is a client segmentation and capacity planning exercise that needs to start now.<\/p><p>This article sets out exactly what the coming MTD for ITSA thresholds mean, when they bite, and how practices can prepare their client base and their own workflows in good time.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7c21b564 elementor-widget elementor-widget-heading\" data-id=\"7c21b564\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">What Is MTD for ITSA?\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d0b9d9b elementor-widget elementor-widget-text-editor\" data-id=\"d0b9d9b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>MTD ITSA replaces the annual Self Assessment return for those in scope with digital record-keeping and quarterly updates submitted to HMRC through compatible software. A Final Declaration, which has replaced the old End of Period Statement (EOPS) process, confirms the figures at year-end. The aim, according to HMRC, is more accurate, more frequent reporting that reduces error and closes the tax gap.<\/p><p>The regime applies to sole traders and landlords whose combined gross trading and property income exceeds a specified threshold, assessed against a prior tax year&#8217;s Self Assessment return. It does not currently apply to partnerships, companies, trusts, or estates.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-aa2f411 elementor-widget elementor-widget-heading\" data-id=\"aa2f411\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">What Are the MTD for ITSA Thresholds and Deadlines?\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b1c78f9 elementor-widget elementor-widget-text-editor\" data-id=\"b1c78f9\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>The phasing for <a href=\"https:\/\/befreeltd.com\/uk\/services\/tax-outsourcing\/making-tax-digital\/\">Making Tax Digital<\/a> is based on gross income, not profit, and each wave is tested against a specific earlier tax year:<\/p><ul><li><strong>From 6 April 2026:<\/strong> Sole traders and landlords with combined gross income above \u00a350,000, tested against the 2024\/25 Self Assessment return, are mandated. Quarterly submission MTD ITSA deadlines for this cohort are 7 August, 7 November, 7 February, and 7 May, with the Final Declaration due by 31 January following the tax year.<\/li><li><strong>From 6 April 2027:<\/strong> The threshold falls to \u00a330,000, tested against 2025\/26 income. This wave covers the 2027\/28 tax year.<\/li><li><strong>From 6 April 2028:<\/strong> The threshold falls again to \u00a320,000, tested against 2026\/27 income. HMRC estimates this expansion will bring roughly 900,000 additional taxpayers into MTD.<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f3e5edc elementor-widget elementor-widget-text-editor\" data-id=\"f3e5edc\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\tBelow \u00a320,000, mandation has not been confirmed, and the government has indicated it will continue to consider how smaller businesses might eventually be brought into digital reporting, though no date has been set.\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a82cc23 elementor-widget elementor-widget-heading\" data-id=\"a82cc23\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">How Is Qualifying Income Calculated?\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-77bae6e elementor-widget elementor-widget-text-editor\" data-id=\"77bae6e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Gross income is aggregated across all trading and property sources reported on an individual&#8217;s return, before expenses, mortgage interest, or capital allowances are deducted. A client with \u00a322,000 in rental receipts and \u00a315,000 in self-employment income, for example, would be assessed on the combined \u00a337,000, not on either figure in isolation. Where a business operated for only part of the relevant tax year, receipts are annualised for the purposes of the threshold test.<\/p><p>For jointly held property, each landlord&#8217;s own share of receipts is what counts, not the total for the property.<\/p><p>Find out what are the <a href=\"https:\/\/befreeltd.com\/uk\/resources\/blogs\/mtd-for-itsa-common-mistakes-practices-making\/\">common mistakes firms are making while implementing MTD for ITSA<\/a> for their clients.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-53d8a96 elementor-widget elementor-widget-heading\" data-id=\"53d8a96\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Why Does the \u00a320,000 Wave Matter More for Practices?\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9db485b elementor-widget elementor-widget-text-editor\" data-id=\"9db485b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>The \u00a350,000 and \u00a330,000 cohorts are relatively contained and often already engaged with digital bookkeeping. The \u00a320,000 threshold is different in scale. It captures a much broader base of smaller landlords, side income earners, and part-time traders, many of whom have never used accounting software and may not think of themselves as needing an accountant&#8217;s help at all.<\/p><p>For practices, this means:<\/p><ul><li><strong>A larger, more fragmented client base<\/strong> entering MTD at once, with less digital maturity on average.<\/li><li><strong>Increased demand for software selection and onboarding support<\/strong>, particularly for clients still working from spreadsheets or paper records.<\/li><li><strong>Pressure on capacity around each quarterly deadline<\/strong>, requiring practices to review resourcing well ahead of 2028.<\/li><li><strong>A commercial opportunity<\/strong> to formalise pricing and service tiers for digital record keeping and quarterly submissions before demand peaks.<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-14bb01f elementor-widget elementor-widget-text-editor\" data-id=\"14bb01f\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Know more about <a href=\"https:\/\/befreeltd.com\/uk\/resources\/blogs\/mtd-itsa-quarterly-updates\/\">what the first quarter has revealed about MTD for ITSA and its implementation<\/a>.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-708f2ee elementor-widget elementor-widget-heading\" data-id=\"708f2ee\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">How Should Practices Prepare Now for The MTD for ITSA New Waves?\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8366cc1 elementor-widget elementor-widget-text-editor\" data-id=\"8366cc1\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Waiting until closer to April 2027 or 2028 leaves little room to manage the transition well. Practices that are ahead of the curve are already:<\/p><ol><li>Segmenting client lists by current and projected qualifying income to identify who falls into each wave.<\/li><li>Reviewing which clients will need to move off spreadsheets and onto MTD-compatible software.<\/li><li>Communicating early with clients who are close to a threshold, so income is monitored rather than discovered retrospectively.<\/li><li>Building quarterly submission cycles into practice management systems now, rather than adapting under deadline pressure later.<\/li><li>Considering fee structures that reflect the additional quarterly workload, ahead of the busier compliance calendar.<\/li><\/ol>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8c948ac elementor-widget elementor-widget-text-editor\" data-id=\"8c948ac\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Making Tax Digital has moved past the stage of being a future reform. It is a live regulatory requirement with a clear, published timetable, and each wave brings a meaningfully different client profile into scope. Read how <a href=\"https:\/\/befreeltd.com\/uk\/resources\/blogs\/hmrc-making-tax-digital-guide\/\">HMRC Making Tax Digital is transforming UK tax compliance<\/a>.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-82e463e elementor-widget elementor-widget-heading\" data-id=\"82e463e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">FAQs\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6c3e915 elementor-widget elementor-widget-n-accordion\" data-id=\"6c3e915\" data-element_type=\"widget\" data-e-type=\"widget\" data-settings=\"{&quot;n_accordion_animation_duration&quot;:{&quot;unit&quot;:&quot;ms&quot;,&quot;size&quot;:300,&quot;sizes&quot;:[]},&quot;default_state&quot;:&quot;expanded&quot;,&quot;max_items_expended&quot;:&quot;one&quot;}\" data-widget_type=\"nested-accordion.default\">\n\t\t\t\t\t\t\t<div class=\"e-n-accordion\" aria-label=\"Accordion. Open links with Enter or Space, close with Escape, and navigate with Arrow Keys\">\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-1130\" class=\"e-n-accordion-item\" open>\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"1\" tabindex=\"0\" aria-expanded=\"true\" aria-controls=\"e-n-accordion-item-1130\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><h3 class=\"e-n-accordion-item-title-text\"> When does the \u00a320,000 MTD for ITSA threshold come into effect? <\/h3><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-up\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M240.971 130.524l194.343 194.343c9.373 9.373 9.373 24.569 0 33.941l-22.667 22.667c-9.357 9.357-24.522 9.375-33.901.04L224 227.495 69.255 381.516c-9.379 9.335-24.544 9.317-33.901-.04l-22.667-22.667c-9.373-9.373-9.373-24.569 0-33.941L207.03 130.525c9.372-9.373 24.568-9.373 33.941-.001z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-down\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M207.029 381.476L12.686 187.132c-9.373-9.373-9.373-24.569 0-33.941l22.667-22.667c9.357-9.357 24.522-9.375 33.901-.04L224 284.505l154.745-154.021c9.379-9.335 24.544-9.317 33.901.04l22.667 22.667c9.373 9.373 9.373 24.569 0 33.941L240.971 381.476c-9.373 9.372-24.569 9.372-33.942 0z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1130\" class=\"elementor-element elementor-element-bf2dc01 e-con-full e-flex e-con e-child\" data-id=\"bf2dc01\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-0c47398 elementor-widget elementor-widget-text-editor\" data-id=\"0c47398\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t\nThe \u00a320,000 MTD ITSA threshold applies from 6 April 2028, assessed against income reported for the 2026\/27 tax year.\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-1131\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"2\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-1131\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><h3 class=\"e-n-accordion-item-title-text\"> What income counts towards the MTD for ITSA threshold? <\/h3><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-up\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M240.971 130.524l194.343 194.343c9.373 9.373 9.373 24.569 0 33.941l-22.667 22.667c-9.357 9.357-24.522 9.375-33.901.04L224 227.495 69.255 381.516c-9.379 9.335-24.544 9.317-33.901-.04l-22.667-22.667c-9.373-9.373-9.373-24.569 0-33.941L207.03 130.525c9.372-9.373 24.568-9.373 33.941-.001z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-down\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M207.029 381.476L12.686 187.132c-9.373-9.373-9.373-24.569 0-33.941l22.667-22.667c9.357-9.357 24.522-9.375 33.901-.04L224 284.505l154.745-154.021c9.379-9.335 24.544-9.317 33.901.04l22.667 22.667c9.373 9.373 9.373 24.569 0 33.941L240.971 381.476c-9.373 9.372-24.569 9.372-33.942 0z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1131\" class=\"elementor-element elementor-element-420d23d e-con-full e-flex e-con e-child\" data-id=\"420d23d\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-6dd7c27 elementor-widget elementor-widget-text-editor\" data-id=\"6dd7c27\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t\nGross trading and property income combined, before expenses or allowances are deducted. Dividends, savings income, PAYE salary, and pension income are excluded.\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-1132\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"3\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-1132\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><h3 class=\"e-n-accordion-item-title-text\"> Do landlords with jointly owned property need to include the full rental income? <\/h3><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-up\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M240.971 130.524l194.343 194.343c9.373 9.373 9.373 24.569 0 33.941l-22.667 22.667c-9.357 9.357-24.522 9.375-33.901.04L224 227.495 69.255 381.516c-9.379 9.335-24.544 9.317-33.901-.04l-22.667-22.667c-9.373-9.373-9.373-24.569 0-33.941L207.03 130.525c9.372-9.373 24.568-9.373 33.941-.001z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-down\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M207.029 381.476L12.686 187.132c-9.373-9.373-9.373-24.569 0-33.941l22.667-22.667c9.357-9.357 24.522-9.375 33.901-.04L224 284.505l154.745-154.021c9.379-9.335 24.544-9.317 33.901.04l22.667 22.667c9.373 9.373 9.373 24.569 0 33.941L240.971 381.476c-9.373 9.372-24.569 9.372-33.942 0z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1132\" class=\"elementor-element elementor-element-d7bee12 e-con-full e-flex e-con e-child\" data-id=\"d7bee12\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-c3b2f52 elementor-widget elementor-widget-text-editor\" data-id=\"c3b2f52\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>No. Each individual is assessed only on their own share of the jointly held property&#8217;s receipts, not the total rent received.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-1133\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"4\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-1133\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><h3 class=\"e-n-accordion-item-title-text\"> What replaces the Self Assessment return under MTD for ITSA? <\/h3><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-up\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M240.971 130.524l194.343 194.343c9.373 9.373 9.373 24.569 0 33.941l-22.667 22.667c-9.357 9.357-24.522 9.375-33.901.04L224 227.495 69.255 381.516c-9.379 9.335-24.544 9.317-33.901-.04l-22.667-22.667c-9.373-9.373-9.373-24.569 0-33.941L207.03 130.525c9.372-9.373 24.568-9.373 33.941-.001z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-down\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M207.029 381.476L12.686 187.132c-9.373-9.373-9.373-24.569 0-33.941l22.667-22.667c9.357-9.357 24.522-9.375 33.901-.04L224 284.505l154.745-154.021c9.379-9.335 24.544-9.317 33.901.04l22.667 22.667c9.373 9.373 9.373 24.569 0 33.941L240.971 381.476c-9.373 9.372-24.569 9.372-33.942 0z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1133\" class=\"elementor-element elementor-element-3f2b2c4 e-con-full e-flex e-con e-child\" data-id=\"3f2b2c4\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-c7c9666 elementor-widget elementor-widget-text-editor\" data-id=\"c7c9666\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t\nQuarterly digital updates submitted through compatible MTD ITSA software, followed by a Final Declaration by 31 January after the tax year, which has replaced the previous End of Period Statement process.\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<script type=\"application\/ld+json\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@type\":\"FAQPage\",\"mainEntity\":[{\"@type\":\"Question\",\"name\":\"When does the \\u00a320,000 MTD for ITSA threshold come into effect?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"The \\u00a320,000 MTD ITSA threshold applies from 6 April 2028, assessed against income reported for the 2026\\\/27 tax year.\"}},{\"@type\":\"Question\",\"name\":\"What income counts towards the MTD for ITSA threshold?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Gross trading and property income combined, before expenses or allowances are deducted. Dividends, savings income, PAYE salary, and pension income are excluded.\"}},{\"@type\":\"Question\",\"name\":\"Do landlords with jointly owned property need to include the full rental income?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"No. Each individual is assessed only on their own share of the jointly held property&#8217;s receipts, not the total rent received.\"}},{\"@type\":\"Question\",\"name\":\"What replaces the Self Assessment return under MTD for ITSA?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Quarterly digital updates submitted through compatible MTD ITSA software, followed by a Final Declaration by 31 January after the tax year, which has replaced the previous End of Period Statement process.\"}}]}<\/script>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e231064 elementor-widget elementor-widget-heading\" data-id=\"e231064\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Get Ahead of the Next MTD for ITSA Wave\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f373da1 elementor-widget elementor-widget-text-editor\" data-id=\"f373da1\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Whether your client base is approaching the \u00a330,000 threshold in 2027 or the \u00a320,000 threshold in 2028, early preparation protects both compliance and capacity. Befree works alongside practices to <a href=\"https:\/\/befreeltd.com\/uk\/resources\/blogs\/get-ready-making-tax-digital-for-income-tax\/\">plan for MTD for ITSA<\/a> transitions with confidence.<\/p><p><a href=\"https:\/\/befreeltd.com\/uk\/contact-us\/\">Get in touch with our team<\/a> to talk through your practice&#8217;s readiness.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) is already live for the highest-income cohort, and two further waves are on the way. From April 2027, the threshold drops to \u00a330,000. From April 2028, it falls again to \u00a320,000, pulling thousands more sole traders and landlords into quarterly digital reporting. For UK [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":19029,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[88],"class_list":["post-19023","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blogs","tag-mtd"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>MTD ITSA \u00a320,000 Threshold Guide for UK Practices | Befree<\/title>\n<meta name=\"description\" content=\"MTD for ITSA&#039;s threshold falls to \u00a330,000 in 2027 and \u00a320,000 in 2028. Here&#039;s what UK practices need to know now to prepare clients and capacity.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"MTD ITSA \u00a320,000 Threshold Guide for UK Practices | Befree\" \/>\n<meta name=\"twitter:description\" content=\"MTD for ITSA&#039;s threshold falls to \u00a330,000 in 2027 and \u00a320,000 in 2028. Here&#039;s what UK practices need to know now to prepare clients and capacity.\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/befreeltd.com\/uk\/wp-content\/uploads\/MTD-ITSA-What-the-Next-Two-Waves-Mean-for-Your-Practice.webp\" \/>\n<meta name=\"twitter:creator\" content=\"@infobefreeltd\" \/>\n<meta name=\"twitter:site\" content=\"@infobefreeltd\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"shwetha\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"MTD ITSA \u00a320,000 Threshold Guide for UK Practices | Befree","description":"MTD for ITSA's threshold falls to \u00a330,000 in 2027 and \u00a320,000 in 2028. Here's what UK practices need to know now to prepare clients and capacity.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"twitter_card":"summary_large_image","twitter_title":"MTD ITSA \u00a320,000 Threshold Guide for UK Practices | Befree","twitter_description":"MTD for ITSA's threshold falls to \u00a330,000 in 2027 and \u00a320,000 in 2028. Here's what UK practices need to know now to prepare clients and capacity.","twitter_image":"https:\/\/befreeltd.com\/uk\/wp-content\/uploads\/MTD-ITSA-What-the-Next-Two-Waves-Mean-for-Your-Practice.webp","twitter_creator":"@infobefreeltd","twitter_site":"@infobefreeltd","twitter_misc":{"Written by":"shwetha","Estimated reading time":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[]}},"_links":{"self":[{"href":"https:\/\/befreeltd.com\/uk\/wp-json\/wp\/v2\/posts\/19023","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/befreeltd.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/befreeltd.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/befreeltd.com\/uk\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/befreeltd.com\/uk\/wp-json\/wp\/v2\/comments?post=19023"}],"version-history":[{"count":7,"href":"https:\/\/befreeltd.com\/uk\/wp-json\/wp\/v2\/posts\/19023\/revisions"}],"predecessor-version":[{"id":19032,"href":"https:\/\/befreeltd.com\/uk\/wp-json\/wp\/v2\/posts\/19023\/revisions\/19032"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/befreeltd.com\/uk\/wp-json\/wp\/v2\/media\/19029"}],"wp:attachment":[{"href":"https:\/\/befreeltd.com\/uk\/wp-json\/wp\/v2\/media?parent=19023"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/befreeltd.com\/uk\/wp-json\/wp\/v2\/categories?post=19023"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/befreeltd.com\/uk\/wp-json\/wp\/v2\/tags?post=19023"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}