What changes
- Digital records. You keep your income and expenses in HMRC-recognised software, or a spreadsheet connected with bridging software. A shoebox of receipts is no longer enough.
- Quarterly updates. Four times a year, your software sends HMRC a summary of income and expenses.
- Final declaration. After the tax year, you confirm the figures by 31 January. This replaces the Self Assessment tax return.
What stays the same
- When you pay. Tax is still due on 31 January, with payments on account on 31 January and 31 July if they apply to you.
- How much you pay. MTD doesn’t change tax rates or what you can claim.
- Your employment income. Wages taxed through PAYE are not part of MTD.
Who is in, and when
| From | If your qualifying income is over | Based on your tax return for |
|---|---|---|
| 6 April 2026 | £50,000 | 2024/25 |
| 6 April 2027 | £30,000 | 2025/26 (due 31 January 2027) |
| 6 April 2028 (planned) | £20,000 | 2026/27 |
Qualifying income is your gross self-employment takings plus your gross rental income, before any costs. See why MTD counts takings, not profit.
Who isn’t in (for now)
- Limited companies (they have their own tax system).
- Partnership income.
- People HMRC accepts as “digitally excluded” – for example because of age, disability or location – who apply for an exemption.
What to do now
- Add up your 2025/26 takings and rent. Over £30,000? You’re in from April 2027.
- Decide: software and do it yourself, or an accountant who handles the quarterly updates for you. See software or accountant?
- Start keeping records digitally now, so April isn’t a scramble.
Sources
- Find out if and when you need to use Making Tax Digital for Income Tax – GOV.UK
- Work out your qualifying income for Making Tax Digital for Income Tax – GOV.UK
- Send quarterly updates using Making Tax Digital for Income Tax – GOV.UK
- Find software that works with Making Tax Digital for Income Tax – GOV.UK
- Penalties for Making Tax Digital for Income Tax – GOV.UK
General information about HMRC’s Making Tax Digital rules as of 26 October 2026, not tax advice. MTD Match is not affiliated with HMRC.