Quick answer
Making Tax Digital (MTD) is HMRC’s programme to move tax record-keeping and reporting online. Businesses keep digital records and send information to HMRC through compatible software. It has applied to VAT since 2019, and to Income Tax for sole traders and landlords over £50,000 since 6 April 2026.
What Making Tax Digital means
Under Making Tax Digital, you keep your business records digitally and send figures to HMRC directly from software, rather than typing them into an online form once a year. HMRC’s aim is fewer errors and a more up-to-date view of the tax you owe.
Which taxes it covers
Tax | Status |
|---|---|
VAT | Applies to all VAT-registered businesses since April 2022 |
Income Tax | Applies to sole traders and landlords over the income threshold, from 6 April 2026 |
Corporation Tax | No start date set |
What changes for Income Tax
You keep digital records of your self-employment and property income and expenses.
You send HMRC a summary every quarter.
You submit a final declaration after the tax year ends, which replaces your Self Assessment return.
Payment dates don’t change. You still pay on 31 January and 31 July.
Who it affects
It depends on your qualifying income: your gross self-employment and property income before expenses.
Start date | Qualifying income over | Based on your tax return for |
|---|---|---|
6 April 2026 | £50,000 | 2024/25 |
6 April 2027 | £30,000 | 2025/26 |
6 April 2028 | £20,000 | 2026/27 |
Read who needs MTD for Income Tax for the detail, or use our MTD checker.