Old Self Assessment vs MTD ITSA, side by side
| Old Self Assessment | MTD ITSA | |
|---|---|---|
| How often you report | Once a year | Four updates a year, plus a year-end return |
| Records | Any format — spreadsheet, paper, notebook | Digital, in MTD-compatible software |
| How you file | HMRC online account or paper form | Through software only — no typing into HMRC online |
| Tax rates and allowances | Set annually | Unchanged — same rates, same allowances |
| Payment dates | 31 January, 31 July payments on account | Unchanged — same dates apply |
| Final tax calculation | Done once, on the annual return | Still done once, on the year-end return |
The headline point: your quarterly updates are progress reports, not four smaller tax returns. Nothing is finalised, no reliefs are claimed and no tax is calculated until the year-end return — which is still, in substance, your Self Assessment.
What genuinely changes for you
- Records move from any format you like to digital, MTD-compatible software.
- You file four times a year instead of once — through software, not HMRC's website.
- A points-based late-submission penalty applies to each missed update.
What doesn't change at all
Tax rates, personal allowances, the 31 January and 31 July payment dates, and the fact that you’re still completing what is fundamentally a Self Assessment return — Making Tax Digital changes the reporting mechanism, not the tax itself.
Who Is in Scope
Sole traders and UK landlords with combined gross self-employment and property income above the qualifying threshold for that tax year. Limited companies, partnerships (initially), employees on PAYE, and pensioners with no qualifying income are outside MTD ITSA.