Making Tax Digital
Supporting your Making Tax Digital journey
Making Tax Digital
Making Tax Digital (MTD) is part of the government’s plans to make it easier for individuals and businesses to ensure their tax is correct and keep on top of their affairs.
Supporting your Making Tax Digital journey
Making Tax Digital (MTD) is part of the government’s plans to make it easier for individuals and businesses to ensure their tax is correct and keep on top of their affairs.
MTD requires individuals and businesses to:
- keep digital records
- use software that works with Making Tax Digital
- submit updates every quarter, bringing the tax system closer to real-time
MTD encompasses Making Tax Digital for VAT and Making Tax Digital for Income Tax.
Making Tax Digital for Income Tax
The way income tax self assessment returns are submitted is changing. We’re here to help you prepare.
Starting from April 2026, Making Tax Digital for Income Tax (MTD for IT) will impact sole traders, the self-employed and landlords with qualifying income over £50,000. The HMRC digitalisation initiative is aimed at making it easier for everyone to report their tax and do so correctly.
Our dedicated Digital Delivery team is here to support those impacted with selecting, implementing and setting up a compliant solution.
Get in touch for guidance on how to manage the change.
The criteria and requirements
MTD for IT will be introduced in three phases:
- from April 2026, for those with qualifying income over £50,000
- from April 2027, for those with qualifying income over £30,000
- from April 2028, for those with qualifying income over £20,000
Those falling into scope are required to maintain digital records and update HMRC each quarter, instead of the traditional annual tax return. Any return needs to be done using MTD-compatible software.
The benefits of maintaining digital records
As well as MTD for IT compliance, submitting records digitally offers benefits such as a reduced admin time, paperwork, more accurate financial records and the availability of real-time information about your finances. You can find out more about cloud accounting and the benefits to you and your business.
For small businesses, sole traders and landlords
From 6 April 2026, many small businesses, sole traders, and landlords earning over £50,000 will need to keep digital records and submit quarterly updates using MTD-compatible software.
We offer expert, personalised advice to help you choose the right MTD solution for your needs. We guide you through the setup process and ensure you stay compliant as requirements evolve.
With our support, you can:
- Select the most suitable MTD-recognised software for your business
- Get set up correctly and confidently from the outset
- Prepare and submit quarterly updates and your Final Declaration with ease
We’re here to make the transition to Making Tax Digital as straightforward as possible - so you can focus on running your business.
Frequently asked questions
Making Tax Digital (MTD) is a UK government initiative designed to modernise the tax system by requiring businesses and individuals to keep digital records and submit tax returns using compatible software. It aims to reduce errors, improve efficiency, and streamline tax reporting.
From 6 April 2026, Making Tax Digital (MTD) will be mandatory for sole traders, self-employed individuals and landlords with an annual income over £50,000. As of April 2027, this will roll out to incomes over £30,000, then £20,000 from April 2028. The final threshold was announced in the 2025 Spring Statement.
You must use Making Tax Digital for Income Tax if:
- You’re registered for Self-Assessment
- You earn from self-employment, property, or both
- To begin with, your income is over £50,000. This will increase scope to over £30,000 from April 2027, and then apply to income over £20,000 from April 2028.
Making Tax Digital for VAT applies to all VAT registered businesses.
MTD stands for Making Tax Digital. MTD is a UK government initiative to modernise tax reporting by requiring businesses and individuals to keep digital records and submit tax returns using compatible software.
Making Tax Digital (MTD) for Income Tax Timeline
From April 2026, sole traders, the self-employed and landlords with qualifying income of £50,000 or more must maintain digital records and submit quarterly updates to HMRC using compatible software, rather than submitting one annual return. Below are the key dates for MTD for Income Tax.
April 2025:
- Sole traders, the self-employed and landlords should start to plan ahead for MTD for Income Tax to allow enough time for migration, system setup and testing in order to be compliant by the deadline.
- Sole traders, the self-employed and landlords can voluntarily sign up for MTD for Income Tax ahead of the deadlines.
6 April 2026
MTD for Income Tax is mandated for sole traders, the self-employed and landlords with qualifying income of £50,000 or more.
Those impacted from next year should start to plan ahead for MTD for Income Tax to allow enough time for migration, system setup and testing in order to be compliant by the deadline.
7 August 2026
Q1 filing due for period 6 April to 5 July.
7 November 2026
Q2 filing due for period 6 April to 5 October.
31 January 2027
Self assessment due for the tax year 25/26, pre MTD mandation.
7 February 2027
Q3 filing due for period 6 April to 5 January.
6 April 2027
MTD for Income Tax is mandated for sole traders, the self-employed and landlords with qualifying income of £30,000 or more.
Those impacted from next year should start to plan ahead for MTD for Income Tax to allow enough time for migration, system setup and testing in order to be compliant by the deadline.
7 May 2027
Q4 filing due for period 6 April to 5 April 2027.
7 August 2027
Q1 filing due for period 6 April to 5 July.
7 November 2027
Q2 filing due for period 6 April to 5 October.
31 January 2028
Final declaration due for the tax year 26/27.
7 February 2028
Q3 filing due for period 6 April to 5 January.
6 April 2028
MTD for Income Tax is mandated for sole traders, the self-employed and landlords with qualifying income of
£20,000 or more.
£20,000 or more.
7 May 2028
Q4 filing due for period 6 April to 5 April.
7 August 2028
Q1 filing due for period 6 April to 5 July.
7 November 2028
Q2 filing due for period 6 April to 5 October.
31 January 2028
Final declaration due for the tax year 27/28.
With you every step of the way
MTD for IT represents a significant change in the way those impacted manage their tax affairs. At Azets, we have been working with clients to prepare for MTD by using and partnering with market-leading technology solutions, including Xero, that meet the requirements and legislation. We are also working with HMRC as part of their Public MTD Beta testing in order to test and refine the solutions that underpin our planned MTD Services. With our breadth of solutions and extensive expertise in supporting individuals and businesses on their digital journey, we can support you with adhering to the regulations.