Making Tax Digital (MTD) for Income Tax is HMRC’s initiative to modernise the way self‑employed individuals and landlords report and manage their tax. Instead of filing a single annual Self Assessment return, affected taxpayers must keep digital records of their business and property income and expenses, and use HMRC‑recognised software such as Easy MTD to send associated quarterly updates. These updates provide HMRC with a running picture of income and expenditure, making the Income Tax process more structured and minimising the end of year submission panic.
Other Income Tax figures such as allowances and adjustments, together with personal income, reliefs and deductions, must also be submitted during or at the end of the tax year so HMRC can build up a complete picture of a tax obligation. When all figures have been filed, HMRC present a comprehensive tax calculation that taxpayers must agree to. They then make a final declaration, completing their MTD for Income Tax journey.
MTD for Income Tax is being phased in from 6 April 2026, starting with sole traders and landlords with qualifying income above £50,000 and lower thresholds being introduced in subsequent years.
Whatever your opinion is of MTD for Income Tax, there's no avoiding it. Now's the time to grab compatible software such as Easy MTD, record your income and expenses digitally, then say goodbye to HMRC's online Self Assessment system.