Making Tax Digital (MTD) for Income Tax

Support for sole traders, landlords and people with both income types moving to digital records, quarterly updates and final declarations.

Who may need to comply

MTD for Income Tax applies to sole traders, landlords, or people with both types of qualifying income, with HMRC bringing people in by income threshold.

April 2026 Income above £50,000
April 2027 Income above £30,000
April 2028 Income above £20,000

What changes under MTD

  • Keep digital records using compatible software
  • Send quarterly updates to HMRC during the tax year
  • Complete year-end adjustments and final declarations
  • Stay organised with a clearer reporting timetable

Why acting early matters

Getting set up early helps avoid last-minute pressure. HMRC will not apply penalty points for late quarterly updates in the first mandated year, but late tax returns and late payment penalties can still apply.

Repeated missed deadlines can move taxpayers into HMRC’s points-based penalty regime.

What you need to do next

  • Check when your qualifying income is due to come into scope
  • Choose compatible bookkeeping software
  • Set up a simple digital record-keeping routine
  • Plan ahead for quarterly submissions and year-end filing

Need help getting MTD-ready?

We can review your position and map out the simplest route to compliance.

Download your MTD-ready checklist

A simple one-page guide visitors can keep, print or use as a starting point.

 Download your checklist PDF
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