Making Tax Digital for Income Tax (formerly MTD for ITSA – catchy name, right? 😅) is HMRC’s next big step in dragging tax into the 21st century. If you’re self-employed or a landlord, this will affect you – and we’re here to make sure you’re ready.
Be sure to head over to our Making Tax Digital hub, full of guides, software reviews, important dates and more.
⌚Quick Backstory
First came MTD for VAT (remember that one?). That kicked off in 2019, then got stricter in 2022.
Now it’s the turn of Income Tax. And from April 2026, the old-school Self Assessment return will start being phased out for millions of people.
👀 So, Who Needs to Worry About This?
If you’re:
- Self-employed, or a landlord,
- And your total income from self-employment or property is over:
- £50,000 → You’ll need to join from 6 April 2026
- £30,000 → You’ll need to join from 6 April 2027
- £20,000 → You’ll be included from April 2028
- £50,000 → You’ll need to join from 6 April 2026
(Note: This is total income – not profit.)
Partnerships will join later, but HMRC haven’t said when yet. Stay tuned.
🧾 What Will You Have to Do?
If you’re affected, here’s the deal under MTD for Income Tax:
1. Keep Digital Records
💻 Every business and property transaction needs to be stored digitally. That means no paper records or old Excel sheets.
2. Send Quarterly Updates
📅 Every 3 months, you’ll send a summary of your income and expenses to HMRC through MTD-compatible software.
3. Final Declaration
✅ At the end of the tax year, you’ll do a final tidy-up – confirming all the info and making any adjustments (like pension contributions or personal income). This replaces the current Self Assessment return.
📆 When Are the Deadlines?
Once you’re signed up, your updates are due:
- 7 August
- 7 November
- 7 February
- 7 May
And just like now, you’ll still have until 31 January the following year to pay your tax.
💻 What Software Will You Need?
You’ll need MTD-approved software (we’ll help you choose – Xero, FreeAgent, QuickBooks etc). It must:
- Keep digital records
- Send updates to HMRC
- Let you submit your final declaration
Spreadsheets alone won’t cut it anymore (unless they’re connected to bridging software – and honestly, that’s just a headache you don’t need).
🧪 What’s This Beta Testing Stuff?
HMRC are testing their systems with real users ahead of launch. It’s a private beta at the moment, mostly involving accountants and early volunteers.
We’ll be joining in too – so if you want to get ahead of the game, shout and we’ll get you on the list when it opens up more widely.
✅ Bottom Line
This isn’t about paying more tax – it’s about paying the same tax, just in a more digital, frequent, and tidy way.
It might feel like a faff at first, but we promise: once you’re set up, it’s actually smoother than the once-a-year January panic. And we’ll be with you every step.
🔗 Want the Easy Version?
Head over to our plain-English MTD Hub for guides, tips, and software picks:
Or just drop us a message – we’ll get you ready well before the deadline hits.
