The tool poses a number of questions and offers guidance on how to answer them. Based on the answers given, the tool will then indicate if the taxpayer is required to use MTD ITSA and if so, from when.  

The tool is not designed to be used where there is foreign property income. Also, the tool incorrectly suggests that all company directors are within self assessment. This is not the case although many directors are in self assessment due to other factors, such as their dividend income.   

MTD ITSA applies from:  

• April 2026 for those with gross income from self-employment and/or property of more than £50,000 (usually based on figures in the 2024/25 ITSA returns); and 
• April 2027 for those with a gross income from those sources combined above £30,000 (usually based on the figures in the 2025/26 returns). 

There are a number of exemptions from MTD ITSA, including where the person does not have a national insurance number, is a trustee or is a personal representative.  A person may apply for exemption if they are digitally excluded.  

The tool also explains the next steps for those who are required to use MTD ITSA. This includes the option to join MTD ITSA now voluntarily, which can be done by following HMRC’s step-by-step guidance.  

For detailed guidance on MTD ITSA, including exactly how HMRC works out the amount of turnover for the threshold test, see ICAEW’s hub.