Quick answer
MTD for VAT and MTD for Income Tax are separate. MTD for VAT has applied to every VAT-registered business since April 2022 and covers your VAT returns. MTD for Income Tax started in April 2026 for sole traders and landlords over the income threshold, and covers quarterly updates and a final declaration. A VAT-registered sole trader over the threshold needs to do both.
Side by side
| MTD for VAT | MTD for Income Tax |
|---|---|---|
Who | All VAT-registered businesses | Sole traders and landlords over the income threshold |
Started | April 2019 for businesses over the VAT threshold, April 2022 for all | 6 April 2026 |
What you send | VAT returns | Quarterly updates and a final declaration |
When you pay | With each VAT return | 31 January and 31 July, as before |
Usual deadline | 1 month and 7 days after the VAT period ends | 7th of the month after each quarter |
Will my VAT software work for Income Tax?
Not necessarily. A product being compatible with MTD for VAT doesn’t mean it supports MTD for Income Tax. Check that your software can send quarterly updates and a final declaration before you rely on it.
Doing both
If you’re a VAT-registered sole trader in MTD for Income Tax, you keep one set of digital records and use it for both. If your VAT periods line up with calendar quarters, choosing calendar quarters for MTD for Income Tax lets you review both from the same records at the same time.
Limited companies
MTD for Income Tax doesn’t apply to limited companies, which pay Corporation Tax. A company that’s VAT-registered still uses MTD for VAT. Your salary and dividends as a director don’t count towards the MTD for Income Tax threshold.
See who needs MTD for Income Tax and how to choose MTD software.