What is Making Tax Digital for Income Tax?
MTD for Income Tax changes the way sole traders and landlords submit Income Tax returns. Those earning (not profit) above £50,000 need to comply in April 2026, followed by those earning £30,000 who are mandated from April 2027, then those earning £20,000 in 2028. To meet requirements, you must:
Keep digital records of all business income and expenditure
Submit quarterly updates using HMRC-recognised MTD for IT software
Provide a Final Declaration by 31 January, following the tax year
Making Tax Digital (MTD) is a government initiative that changes the way businesses and individuals keep records and submit tax information.
From April 2026, MTD for Income Tax Self Assessment (MTD ITSA) will apply to:
– Self‑employed individuals
– Landlords
– Partnerships (later date)
If your annual business or property income is over £50,000, you’ll need to follow MTD rules. From April 2027, those earning over £30,000 will also be included.
Instead of one annual tax return, you will:
– Keep digital records of income and expenses
– Send quarterly updates to HMRC using approved software
– Submit an end-of-period statement and final declaration
This means more regular reporting, but less end-of-year stress.
These are the standard update periods and deadlines, which line up with the tax year (6 April to 5 April).
Update period (Update deadline)
6 April to 5 July 2026
(7 August 2026)
6 April to 5 October 2026
(7 November 2026)
6 April to 5 January 2026
(7 February 2026)
6 April to 5 April 2026
(7 May 2026)
