All guides

Making Tax Digital guides

Plain-English guides to Making Tax Digital for Income Tax, grouped by topic. Each one answers a single question, starting with a quick answer and linking to HMRC’s official guidance.

Getting started

All getting started guides

Getting started

What is Making Tax Digital?

A plain-English explanation of HMRC’s Making Tax Digital programme: what it is, which taxes it covers, and what it means for you.

4 min read

Getting started

MTD for Income Tax: who needs it

Who has to use MTD for Income Tax, the £50,000, £30,000 and £20,000 thresholds, what counts as qualifying income, and how to sign up.

6 min read

Getting started

Working out qualifying income

What counts as qualifying income for Making Tax Digital for Income Tax, what doesn’t, and worked examples for common situations.

5 min read

Getting started

When do I need to start MTD?

When MTD for Income Tax starts for you, based on your income and tax return, with examples for each start date.

4 min read

Getting started

MTD exemptions

The automatic exemptions from MTD for Income Tax, the temporary ones that run to April 2027, and how to apply if you’re digitally excluded.

5 min read

Getting started

MTD if you earn under £20,000

Why qualifying income of £20,000 or less is exempt from MTD for Income Tax, what counts towards it, and when it’s worth joining anyway.

4 min read

Getting started

How to sign up for MTD

What you need before signing up for MTD for Income Tax, the steps on GOV.UK, signing up through an accountant, and what to do if HMRC signed you up.

5 min read

Getting started

Had an MTD letter from HMRC?

What HMRC’s Making Tax Digital letters mean, what to do next, and what to do if you think HMRC has it wrong.

4 min read

Getting started

Using an accountant for MTD

How to let an accountant handle MTD for Income Tax for you, what they can do, and what you still need to do yourself.

4 min read

Getting started

MTD vs Self Assessment

What changes when you move from Self Assessment to MTD for Income Tax, and what stays the same.

4 min read

Getting started

MTD if you live outside the UK

How MTD for Income Tax applies to people who aren’t UK resident but have UK self-employment or property income.

3 min read

Getting started

MTD FAQs and accountant questions

Straight answers to the most common Making Tax Digital questions, plus the questions to put to your accountant before your first quarter.

7 min read

Deadlines and penalties

All deadlines and penalties guides

Deadlines and penalties

MTD deadlines 2026/27

Every Making Tax Digital deadline for the 2026/27 tax year: the four quarterly updates, the final declaration, and when you actually pay.

4 min read

Deadlines and penalties

MTD penalties explained

How late submission points and £200 penalties work under Making Tax Digital, the 2026/27 grace year, and what happens if you pay late.

4 min read

Deadlines and penalties

Payments on account and MTD

Why MTD for Income Tax doesn’t change when you pay, and how payments on account work alongside quarterly updates.

4 min read

Deadlines and penalties

Late payment penalties

How late payment penalties and interest work for people in MTD for Income Tax, with the rates for 2026/27 and 2027/28.

4 min read

Deadlines and penalties

When penalty points expire

How Making Tax Digital late submission points expire, and how to clear them once you’ve hit the four-point threshold.

3 min read

Deadlines and penalties

Appealing an MTD penalty

How to challenge a Making Tax Digital penalty point or charge, what counts as a reasonable excuse, and the time limit.

3 min read

Records, updates and software

All records, updates and software guides

Records, updates and software

MTD quarterly updates

What goes into a Making Tax Digital quarterly update, how often you send one, and how to fix mistakes.

5 min read

Records, updates and software

MTD software comparison

A side-by-side comparison of the main kinds of Making Tax Digital software, who each suits, and the questions to ask before you pay.

5 min read

Records, updates and software

Standard vs calendar quarters

The two types of quarterly update period for MTD for Income Tax, how calendar quarters work, and who should use them.

3 min read

Records, updates and software

Digital records for MTD

What counts as a digital record under MTD for Income Tax, what each record must include, and the rules on digital links.

5 min read

Records, updates and software

Your first quarterly update

A step-by-step walkthrough of sending your first Making Tax Digital quarterly update, from records to submission.

4 min read

Records, updates and software

Correcting MTD mistakes

How to fix errors in Making Tax Digital quarterly updates and final declarations, and why you don’t need to resend old updates.

3 min read

Records, updates and software

Your in-year tax estimate

What HMRC’s in-year tax estimate under MTD for Income Tax shows, how reliable it is, and how to use it.

3 min read

Records, updates and software

The final declaration

What the Making Tax Digital final declaration is, what goes into it, and how it replaces the Self Assessment tax return.

4 min read

Records, updates and software

End of period statement (EOPS)

Why the end of period statement no longer exists in MTD for Income Tax, and what replaced it.

2 min read

Records, updates and software

MTD-compatible software

What software you need for Making Tax Digital for Income Tax, the main types, and what to check before you choose.

5 min read

Records, updates and software

Free MTD software

Whether you can do MTD for Income Tax without paying for software, where to find free options, and what to check.

3 min read

Records, updates and software

Bridging software explained

How bridging software lets you keep using spreadsheets for MTD for Income Tax, and the rules you need to follow.

4 min read

Records, updates and software

MTD expenses and categories

The expense categories used in Making Tax Digital quarterly updates for sole traders and landlords, and when you can send one total figure.

5 min read

Records, updates and software

How long to keep records

How long to keep your digital records under MTD for Income Tax, and what to do when you switch software.

2 min read

Landlords and property

All landlords and property guides

Landlords and property

MTD for landlords

How Making Tax Digital works for landlords: why gross rent counts, jointly owned property, overseas lets, and keeping records with a letting agent.

6 min read

Landlords and property

MTD and jointly owned property

How jointly owned rental property counts towards the MTD threshold, whether both owners need MTD, and the simplified records joint landlords can use.

5 min read

Landlords and property

Holiday lets and Airbnb

How MTD for Income Tax applies to holiday lets and short-term lets now that the furnished holiday lettings rules have ended.

3 min read

Landlords and property

MTD for overseas property

How rental income from property abroad counts for MTD for Income Tax if you live in the UK.

3 min read

Landlords and property

MTD for retired landlords

How MTD for Income Tax applies if you’re retired and have rental income, including pensions, exemptions and getting help.

3 min read

Sole traders and businesses

All sole traders and businesses guides

Sole traders and businesses

MTD for sole traders

What Making Tax Digital means if you’re self-employed: the records you need, what you send each quarter, and how to get ready.

6 min read

Sole traders and businesses

MTD with a job and a side business

How MTD for Income Tax applies if you have a salaried job and a side business or rental income.

3 min read

Sole traders and businesses

MTD with more than one business

How MTD for Income Tax works if you have several trades or a mix of trading and rental income.

3 min read

Sole traders and businesses

Cash basis under MTD

How the cash basis works for sole traders and landlords in MTD for Income Tax, and when traditional accounting may suit you better.

4 min read

Sole traders and businesses

MTD for CIS subcontractors

How MTD for Income Tax applies to self-employed construction workers paid under the Construction Industry Scheme.

3 min read

Sole traders and businesses

MTD and partnerships

When partnerships will join MTD for Income Tax, and how being a partner affects your own MTD position.

3 min read

Sole traders and businesses

MTD for VAT vs Income Tax

How Making Tax Digital for VAT and for Income Tax differ, whether your VAT software will work, and how to handle both if you’re a VAT-registered sole trader.

5 min read

Sole traders and businesses

Stopping a business under MTD

What stopping a business means for MTD for Income Tax, including ceased income, the final declaration and opting out.

3 min read