Why MTD for Income Tax Isn't Enabled Yet - and What Happens Next

Easy MTD's Making Tax Digital (MTD) for Income Tax functionality is currently awaiting final approval from HMRC. Although Easy MTD is already fully approved for MTD for VAT, HMRC must separately authorise each software product for MTD for Income Tax before it can be switched on for public use. Until that approval is granted, the Income Tax features must remain disabled.

Current Status: Awaiting HMRC Approval

HMRC is still completing its review and onboarding process for Easy MTD's Income Tax capabilities. This approval is required before any software provider can allow users to submit quarterly updates for:

• Self-employment income
• UK property income
• Foreign property income

Easy MTD has already passed multiple stages of HMRC's technical checks, and we are continuing to work closely with HMRC to ensure the remaining steps are completed as quickly as possible.

What Happens Once HMRC Approves Easy MTD?

As soon as HMRC gives the green light, a new Easy MTD update will be released. This update will immediately enable users to submit their quarterly updates directly to HMRC through the software.

Our aim is to ensure this approval arrives before the first quarterly update deadline on 07 August 2026. If HMRC completes its review in time, users will be able to submit their first update without delay. If not, HMRC have stated that no penalties will be issued in the 2026/27 tax year for quarterly updates that are not submitted.

Ongoing Development Throughout the 2026/27 Tax Year

The initial release is only the beginning. Easy MTD will continue expanding its MTD Income Tax functionality throughout the 2026/27 tax year, including:

• Annual summary, accounting adjustments, and losses for each income source
• Individual figures such as income, tax reliefs, charges, Capital Gains Tax, CIS, marriage allowance and disclosures
• Tax calculation summary
• Final declaration
• Tailor tax return
• HMRC Assist

This phased rollout ensures users receive new features as soon as HMRC allows them, without waiting for a single large update.

What You Can Do Now

Although quarterly update submissions aren't yet enabled, record-keeping has already begun. You should continue tracking your self-employment and/or property income and expenses from 6 April 2026 in a spreadsheet so you’re ready to submit once HMRC approval is granted.

Easy MTD spreadsheets are available to help you start capturing your figures today. Alternatively, you can use your own spreadsheets because Easy MTD is compatible with any Excel format.

Find Out More

If you have any concerns or would like to find out more, please use the contact form.