14/06/2026
Q - What is MTD for Income Tax?
Making Tax Digital (MTD) for Income Tax is a government initiative that requires eligible self-employed individuals and landlords to keep digital records and submit tax information to HMRC using compatible software.
Q - Why is HMRC introducing MTD?
HMRC aims to modernise the tax system, reduce errors in tax reporting, and make it easier for taxpayers to manage their tax affairs throughout the year.
Q - Who will be affected?
MTD for Income Tax will apply to self-employed individuals and landlords whose qualifying income exceeds the relevant threshold set by HMRC.
Q - When does MTD start?
MTD for Income Tax is being introduced in phases,
From April 2026 – for individuals with qualifying income over £50,000
From April 2027 – for individuals with qualifying income over £30,000
HMRC has announced plans to extend MTD to more taxpayers in future years.
Q - How does HMRC decide whether I am in the £50,000+ group for MTD for Income Tax?
HMRC looks at your gross qualifying income from:
• Self-employment (sole trader businesses)
• UK property income (rental properties)
The income is measured before expenses are deducted.
For MTD starting in April 2026, HMRC will generally use the information reported on your Self Assessment tax return for the 2024/25 tax year to determine whether your total qualifying income exceeds £50,000.
Q - When do I need to register for MTD for Income Tax?
HMRC has not set a separate registration deadline. However, if you are required to join MTD from April 2026, it is advisable to register and have compatible software in place before end of June 2026 so you can meet your first reporting deadline.
Q - What are the quarterly submission deadlines?
Under the standard tax year quarters, the deadlines are:
7 August – Quarter 1 (6 April to 5 July)
7 November – Quarter 2 (6 July to 5 October)
7 February – Quarter 3 (6 October to 5 January)
7 May – Quarter 4 (6 January to 5 April)
Q - What is "qualifying income"?
Qualifying income generally refers to the total gross income from self-employment and property rental activities before expenses are deducted.
Q - What records will I need to keep?
You'll need to maintain digital records of your business and/or property income and expenses using MTD-compatible software.
Q - Will I still complete a Self Assessment tax return?
Under MTD, you'll submit quarterly updates throughout the year and an annual final declaration. The way information is reported changes, but you'll still need to ensure your tax position is finalised annually.
Q - Do I need special software?
Yes. Spreadsheets alone may not be sufficient unless linked through compatible bridging software. Most taxpayers will need MTD-compatible accounting software to comply.
Q - What should I do now?
If you think MTD may affect you:
01. Review your income levels
02. Register as soon as possible, If your 24/25 income exceeded the treshold
03. Consider suitable accounting software
04. Seek professional advice if you're unsure about your position
