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Making Tax Digital for Income Tax
MTD for Income Tax Self Assessment is the biggest change to UK personal tax reporting in a generation. Here's everything you need to know.
Key Facts
Phase 1 – April 2026
Sole traders and landlords with income over £50,000 must use MTD-compatible software and file quarterly updates.
Phase 2 – April 2027
The threshold drops to £30,000, bringing hundreds of thousands more taxpayers into the MTD regime.
Quarterly Updates
Four quarterly submissions per year plus a final end-of-period statement replace the single annual Self Assessment return.
Compatible Software
You must use HMRC-recognised software such as QuickBooks, Xero, FreeAgent or a bridging solution.
Your MTD Preparation Checklist
- Confirm whether your income exceeds the threshold
- Register voluntarily early to avoid a last-minute rush
- Choose and set up HMRC-compatible bookkeeping software
- Begin keeping digital records of all income and expenses
- Submit quarterly updates within one month of each quarter end
- File your final declaration by 31 January following the tax year
Get MTD-Ready with EP Laval Accountants
We'll set up your software, migrate your records and manage your quarterly submissions so you can focus on your business.
Book a Free Consultation