Making Tax Digital: The Complete Guide for UK Businesses
Making Tax Digital (MTD) is HMRC's programme to move tax reporting online. MTD for VAT is already mandatory for all VAT-registered businesses. MTD for Income Tax starts 6 April 2026 for those with qualifying income over £50,000.
Go-live date
6 April 2026
Income threshold
£50,000+
Filing frequency
Quarterly updates
First year
Free soft landing
Everything You Need to Know About MTD
Core Guides
By Business Type
Practical Guides
Which MTD Applies to You?
MTD for VAT
All VAT-registered businesses must keep digital records and submit VAT returns through MTD-compatible software. This has been mandatory since April 2022.
MTD for VAT guideMTD for Income Tax
Self-employed individuals and landlords with qualifying income over £50,000 must submit quarterly updates from 6 April 2026. The £30,000 threshold follows from April 2027.
MTD for Income Tax guideMTD for Corporation Tax
HMRC has not announced a date for MTD for Corporation Tax. Limited companies are currently only affected by MTD if they are VAT-registered (via MTD for VAT).
MTD for limited companiesFrequently Asked Questions
What is Making Tax Digital?
Making Tax Digital (MTD) is HMRC's programme requiring businesses and individuals to keep digital records and submit tax returns using MTD-compatible software, replacing paper-based and manual processes.
When does MTD for Income Tax start?
MTD for Income Tax Self Assessment starts on 6 April 2026 for self-employed individuals and landlords with qualifying income over £50,000. Those earning over £30,000 follow from April 2027.
Does MTD apply to limited companies?
MTD for Corporation Tax has not been mandated. Limited companies are only affected by MTD for VAT if they are VAT-registered. MTD for Income Tax does not apply to limited companies.
What software do I need for MTD?
You need HMRC-recognised MTD-compatible software to keep digital records and submit returns. AccountsOS is MTD-ready for VAT submissions and will support MTD for Income Tax.
What are MTD quarterly updates?
Under MTD for Income Tax, you must send HMRC quarterly updates of your income and expenses through compatible software. Deadlines fall on 7 August, 7 November, 7 February, and 7 May.
Can I get an exemption from MTD?
Exemptions exist for those who are digitally excluded (e.g. due to age, disability, or location), religious objections, or where it is not reasonably practicable to use digital tools. You must apply to HMRC.
AccountsOS is MTD-ready
Chat with your books, submit VAT returns, and track deadlines automatically. Be ready for MTD for Income Tax before April 2026.
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