Making Tax Digital for Income Tax (MTD for Income Tax) is HMRC's initiative to modernise how self‑employed individuals and landlords report and manage their tax affairs. Instead of submitting a single annual Self Assessment return, affected taxpayers must keep digital records of their business and property income and expenses. They must then use HMRC‑recognised MTD for Income Tax software, such as Easy MTD, to submit quarterly updates throughout the tax year.
These quarterly submissions give HMRC an up‑to‑date picture of income and expenditure, making the Income Tax process more structured and reducing the traditional end‑of‑year rush.
Submitting Income Tax Figures Under MTD for Income Tax
Alongside quarterly updates, taxpayers must also provide additional Income Tax information - including allowances, adjustments, personal income, reliefs, and deductions. These figures are predominantly submitted at year‑end.
Once all required information has been filed, HMRC generates a full tax calculation. Taxpayers must review and agree to this calculation before making a final declaration, completing their MTD for Income Tax obligations for the year.
When Does MTD for Income Tax Start?
MTD for Income Tax is being introduced from 6 April 2026. The first group required to join will be:
- Sole traders with qualifying income above £50,000
- Landlords with qualifying income above £50,000
Lower income thresholds will be phased in during subsequent years, bringing more taxpayers into the MTD for Income Tax system over time.
Preparing for Making Tax Digital for Income Tax
Whatever your personal view of Making Tax Digital for Income Tax, it is becoming mandatory. Now is the ideal time to:
- Choose compatible MTD for Income Tax software such as Easy MTD
- Think about recording business and property income and expenses digitally
- Transition away from HMRC's traditional online Self Assessment system
Getting ready early ensures a smoother move into the new digital tax environment and avoids unnecessary stress when MTD for Income Tax becomes compulsory.