From April 2026, Making Tax Digital (MTD) for Income Tax will transform how self-employed individuals manage their tax.
You will no longer fill out your tax return all at once, instead, you’ll split and spread the admin throughout the year.
Please note – All applicable VAT registered businesses should now be signed up for Making Tax Digital for VAT. You no longer need to sign up yourself. HMRC will sign you up automatically unless you are exempt or have applied for an exemption.
Who does this effect?
It’s being rolled out in phases depending on turnover.
From 6 April 2026 those with a turnover above £50,000 will need to record and report their income and taxes digitally.
For those with a turnover above £30,000, 6 April 2027 is the date, and for those with a turnover above £20,000 it’s 6 April 2028.
Not sure if the changes will affect you?
Use the MTD Eligibility Checker to find out if and when you need to use Making Tax Digital for Income Tax.
Take a look at the below video – Making Tax Digital for Income Tax
What needs to be sent to HMRC?
Quarterly updates – via your recognised software you’ll send quarterly updates to HMRC to let them know about your income and expenses. These quarterly updates aren’t tax returns, they’re just simple summaries of how your business is doing, in four smaller chunks, pulled from your digital records.
Read more – Use Making Tax Digital for Income Tax – Send quarterly updates – Guidance – GOV.UK
Tax return – you’ll still pay one tax bill each year by the deadline of 31 January. To pay simply sign in to your online tax account through GOV.UK or on the HMRC app – just like now.
How do I submit records digitally?
You’ll need to use recognised software such as an app on your phone or tablet to keep digital records of your income and expenses.
Read more about digital records – Use Making Tax Digital for Income Tax – Create digital records – Guidance – GOV.UK
What your software will need to do
You, or an agent on your behalf, will need to use commercial software that works with Making Tax Digital for Income Tax to:
- create, store and correct digital records of your self-employment and property income and expenses
- send your quarterly updates to HMRC
- submit your tax return by 31 January the following year
Finding the right software
The HMRC have developed an interactive software finder tool that allows you to filter by criteria that is important to your situation, enabling you to identify suitable and compatible products.
Some of the software solutions are free to use.
Use software finder tool – read more via GOV.UK
Types of software and choosing the right software features – read more via GOV.UK
Dates for your diary
Take a look at below MTD for Income Tax dates.
- 6 April 2026 – When you must start keeping records using MTD for Income Tax software
- 7 August 2026 – Deadline to send your first quarterly update
- 7 November 2026 – Deadline to send your second quarterly update
- 31 January 2027 – Deadline to submit a Self-Assessment tax return the usual way for 2025 to 2026
- 7 February 2027 – Deadline to send your third quarterly update
- 7 May 2027 – Deadline to send your fourth quarterly update
- 7 August 2027 – Deadline to send your first quarterly update for 2027 to 2028
- 7 November 2027 – Deadline to send your second quarterly update
- 31 January 2028 – Deadline to submit your tax return straight from MTD for Income Tax software for 2026 to 2027
- 7 February 2028 – Deadline to send your third quarterly update
- 7 May 2028 – Deadline to send your fourth quarterly update
Useful webinars
Watch a recorded HMRC webinar to better understand the legal requirements of MTD.
Webinar – How to get ready for Making Tax Digital for Income Tax if you’re a sole trader
Webinar – Making Tax Digital for Income Tax for businesses
There are also regular live webinars covering the steps required to get ready for MTD, including more details on how to plan for it, actions to take and what to do after signing up.
Take a look at all webinars and register for future live webinars