Making Tax Digital for Income Tax
Getting ready for the new way to do tax returns
Do you work for yourself as a sole trader or earn money from property?
Tax returns are changing – with a new way to record and report your income and expenses. This is called Making Tax Digital for Income Tax.
Sometimes you’ll see this shortened to MTD for Income Tax.
We’re rewiring the way you do Income Tax
In fact, it’s the biggest change since HMRC launched Self Assessment more than 30 years ago.
You won’t fill out your tax return all at once
Instead, you’ll split and spread the admin throughout the year.
You’ll need to
Use recognised software
such as an app on your phone or laptop
to record income and expenses
Send quarterly updates
to HMRC from this software
Submit your tax return
from this software by 31 January each year
Turnover above £50k? You should already have signed up to MTD
3 steps to get ready
Know your start date
We’re rolling it out in phases:
6 April 2027 if your turnover is above £30,000.
6 April 2028 if your turnover is above £20,000.
Check now so you’re ready on time.
Choose recognised software
Explore HMRC’s guidance for software options. There are free and paid choices, plus bridging software if you prefer to keep using spreadsheets.
Sign up now
Don’t leave it until the last minute. Sign up before your start date so everything is in place when you need it.
Quarterly updates
If your turnover is above £50,000 you’ll need to send updates quarterly, see all the key dates and deadlines
