Making Tax Digital (MTD) for Income Tax — starts 6 April 2026

HMRC

Making Tax Digital (MTD) for Income Tax — starts 6 April 2026

Are you ready?

Hands using a laptop and calculator at a desk

Making Tax Digital (MTD) is the government’s move to modernise the UK tax system by requiring certain taxpayers to keep digital records and submit updates to HMRC every quarter.

MTD for VAT has already been in place since April 2022.

What is changing?

  • The next phase, MTD for Income Tax Self-Assessment (ITSA), begins 6 April 2026
  • Quarterly digital submissions will become mandatory for eligible taxpayers subject to Income Tax
  • Tax is not paid quarterly – there is only a requirement to report your figures more frequently

Who must comply in 2026?

From April 2026, MTD for ITSA applies to sole traders and landlords:

  • Who complete self‑assessments; and
  • Have £50,000+ qualifying income (self‑employment and property) in the 2024–25 tax year.
  • Other income such as savings, dividends and pensions is not counted toward the £50,000 threshold
  • The threshold will drop to £30,000 and later £20,000 in future years
  • Partnerships are not included yet

What you’ll need

To comply, you should use HMRC‑approved software to keep digital records and send quarterly updates.
Most well‑known accounting software providers will be compatible, and HMRC provides a list on www.gov.uk

You can also check your personal MTD status using HMRC’s online tool.

What you can do now

  • Confirm whether your income exceeds £50,000

  • Review how you currently keep records — do you need to switch to digital?

  • Make sure your bookkeeping is accurate, timely and free from personal spending

  • Choose compliant software (or check if your current system is compatible)

  • Speak to your accountant for guidance and planning

Need support?

Please contact us if you would like one of PFP’s experts to support you with this.