Free checklist
The MTD setup checklist
Work through this once to get set up for Making Tax Digital for Income Tax, then use the quarterly and year-end sections every year. Tick each box as you go.
Step 1
Check whether MTD applies to you
Add up your gross self-employment turnover (sales before expenses).
Add your gross property income, UK and overseas (rent before expenses). If you own property jointly, use only your share.
Leave out salary, pensions, dividends, savings interest and partnership income.
Compare the total with the threshold: over £50,000 on your 2024/25 return means from 6 April 2026, over £30,000 on 2025/26 means 6 April 2027, over £20,000 on 2026/27 means 6 April 2028.
Check whether you might be exempt, for example if you’re digitally excluded.
Write down your MTD start date.
Step 2
Get your records ready
Open a separate bank account for your business or lettings if you don’t already have one.
List every income source: each trade, your UK property business and any overseas property.
Confirm your accounting basis. Cash basis is the default for sole traders since 2024/25.
Gather last year’s figures and receipts so you can set up matching categories.
Decide how you’ll capture receipts digitally, for example by photographing them into your software.
Step 3
Choose your software
Check it supports all your income sources.
Check it does both quarterly updates and the final declaration.
Check it’s on HMRC’s list of software compatible with MTD for Income Tax.
Check it connects to your bank, if you want automatic transactions.
Check your accountant can access it, if you use one.
Try it with a month of real transactions before you commit.
Step 4
Sign up with HMRC
Have your Government Gateway user ID and password ready.
Have your National Insurance number ready.
Sign up for MTD for Income Tax on GOV.UK, or authorise your accountant to sign you up.
Connect your software to HMRC and confirm it shows your income sources.
Step 5
Before your first quarter ends
Connect your bank feed and set up your expense categories.
Put the four deadlines in your calendar: 7 August, 7 November, 7 February and 7 May.
Decide who sends each update: you or your accountant.
Book a recurring monthly slot to categorise transactions.
Step 6
Every quarter
Check every transaction for the quarter is in your software.
Categorise anything left and attach receipts.
Review the summary for obvious mistakes.
Submit your quarterly update by the 7th of the following month.
Note HMRC’s tax estimate and set money aside.
Step 7
After the tax year ends
Make year-end adjustments, such as capital allowances and private use.
Add any other income: employment, pensions, dividends and savings interest.
Claim reliefs, such as pension contributions and Gift Aid.
Submit your final declaration by 31 January.
Pay any tax owed and your first payment on account by 31 January, and your second payment on account by 31 July.
MTD Submission is an independent guide. We’re not HMRC and we don’t submit anything on your behalf. This checklist is general information, last reviewed October 2026, and isn’t tax advice. For your own situation, check GOV.UK or speak to an accountant.