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Making Tax Digital for Income Tax
Making Tax Digital (MTD) for Income Tax is being introduced in phases for self-employed individuals and landlords. If your qualifying income from self-employment and/or property exceeds the relevant threshold, you will be required to keep digital records and submit updates to HMRC using compatible software.
Key facts at a glance:
- From 6 April 2026: MTD applies to those with qualifying income of more than £50,000.
- From 6 April 2027: MTD applies to those with qualifying income of more than £30,000.
- From 6 April 2028: MTD applies to those with qualifying income of more than £20,000.
- You must submit 4 quarterly updates per tax year, plus a Final Declaration to HMRC.
- Quarterly update deadlines are typically 7 August, 7 November, 7 February and 7 May.
- The deadline to submit your Final Declaration and pay any tax due remains 31 January following the end of the tax year.
- Late submission penalties operate on a points-based system.
- Missing a submission deadline results in 1 penalty point.
- Reaching 4 penalty points triggers a £200 penalty, with a further £200 charge for each subsequent missed deadline while at the threshold.
Need help getting ready for MTD? We can support you with compliant software, digital record-keeping and ongoing submissions to help you stay on top of your HMRC obligations.
