Making Tax Digital (MTD) is a major HMRC reform that changes how taxpayers keep records and report income to HMRC. Instead of filing one annual Self Assessment return, many taxpayers will need to keep digital records and submit updates quarterly using approved software.
Below is a clear overview of the roll-out timeline and who is affected.
Making Tax Digital Roll-out Timeline
1️⃣ Already in place – MTD for VAT
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Since April 2019 – VAT-registered businesses above the VAT threshold had to keep digital records.
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Since April 2022 – it applies to all VAT-registered businesses, regardless of turnover.
2️⃣ April 2026 – First phase (MTD for Income Tax)
From 6 April 2026, the rules apply to:
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Self-employed individuals and landlords
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With income over £50,000 from self-employment and/or property.
They must:
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Keep digital records of income and expenses
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Send quarterly updates to HMRC using MTD-compatible software
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Submit a final end-of-year declaration.
Example quarterly deadlines:
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7 August
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7 November
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7 February
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7 May (following tax year).
3️⃣ April 2027 – Second phase
From 6 April 2027, MTD extends to:
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Self-employed individuals and landlords with income over £30,000.
4️⃣ April 2028 – Third phase
From 6 April 2028, MTD will apply to:
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Those with income over £20,000.
This will bring millions more taxpayers into the system.
⚠️ Important points
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Quarterly updates are not tax returns — they are summaries of income and expenses.
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You will still make a final year-end declaration.
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The first year will be penalty-light for late quarterly updates.
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MTD for Corporation Tax is not currently planned.
Any problems, feel free to contact us
