Does Making Tax Digital apply to me?
Answer three quick questions to find out whether MTD for VAT or MTD for Income Tax applies to you, and from when.
Last updated: July 2026 | For guidance only
MTD for VAT applies to all VAT-registered businesses now (mandatory since April 2022). MTD for Income Tax starts 6 April 2026 for sole traders and landlords with combined qualifying income over £50,000, April 2027 for over £30,000, and April 2028 for over £20,000. Limited companies and partnerships are not in scope for MTD for Income Tax.
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Making Tax Digital: Frequently Asked Questions
What is Making Tax Digital?
Making Tax Digital (MTD) is HMRC's programme requiring businesses to keep digital records and submit tax information using MTD-compatible software instead of manual returns or the online portal. It already covers VAT and is being rolled out to Income Tax for sole traders and landlords.
Who does MTD for VAT apply to?
MTD for VAT applies to every VAT-registered business, regardless of turnover. It has been mandatory since April 2022. If you have a VAT number, you must keep digital VAT records and file your returns through compatible software.
When does MTD for Income Tax start?
MTD for Income Tax is mandated from 6 April 2026 for sole traders and landlords with combined qualifying income over £50,000. The threshold drops to £30,000 from April 2027 and £20,000 from April 2028. HMRC has not set a date for income below £20,000.
What counts as qualifying income for MTD for Income Tax?
Qualifying income is your gross self-employment income plus your gross UK property income, added together, before deducting any expenses or allowances. For example, £40,000 of self-employment income and £15,000 of rental income is £55,000 of qualifying income, so you would be in scope from April 2026 even though neither source exceeds £50,000.
Does MTD apply to limited companies?
MTD for Income Tax applies to individuals, not companies, so your limited company is out of scope for it. MTD for Corporation Tax has been shelved with no confirmed start date. However, if your company is VAT-registered it must comply with MTD for VAT, and if you personally have self-employment or rental income over £50,000, you can be in scope for MTD for Income Tax as an individual.
Do partnerships have to follow Making Tax Digital?
Partnerships are not yet mandated for MTD for Income Tax and HMRC has not confirmed a start date. A VAT-registered partnership must still comply with MTD for VAT.
Which tax year decides if I'm caught by MTD for Income Tax in 2026?
Your April 2026 start is based on the qualifying income on your 2024-25 Self Assessment return. If that return shows combined gross self-employment and property income over £50,000, you must comply from 6 April 2026.
Is AccountsOS MTD-compatible software?
AccountsOS is HMRC-recognised software for MTD for VAT and connects directly to HMRC for VAT submissions. Quarterly MTD for Income Tax support is on our roadmap ahead of the 2026 and 2027 waves. You can keep digital records in AccountsOS today so you're ready when your mandate begins.
Understanding Making Tax Digital in the UK
Making Tax Digital (MTD) is HMRC's long-running plan to move the UK tax system onto digital record-keeping and software-based filing. Instead of typing figures into an online return once a year, affected businesses keep digital records and send updates to HMRC through MTD-compatible software. The rollout has two live strands that matter to most small businesses: MTD for VAT and MTD for Income Tax.
MTD for VAT: already mandatory
Since April 2022, every VAT-registered business must comply with MTD for VAT, regardless of turnover. That means keeping digital VAT records and submitting every VAT return through compatible software with a digital link to HMRC. You can no longer key VAT returns into the old HMRC online portal. If you hold a VAT number, this applies to you now.
MTD for Income Tax: the 2026 to 2028 rollout
MTD for Income Tax Self Assessment (often shortened to MTD ITSA) applies to individuals with self-employment or UK property income. It is phased in by income threshold:
- From 6 April 2026: combined qualifying income over £50,000. Whether you are caught is based on your 2024-25 Self Assessment return.
- From April 2027: combined qualifying income over £30,000.
- From April 2028: combined qualifying income over £20,000.
- Under £20,000: no mandate announced yet, though voluntary sign-up is possible.
What qualifying income means
Qualifying income is your gross self-employment income plus your gross UK property income, combined, before any expenses or allowances. This is the figure that decides your threshold. Someone with £40,000 of self-employment income and £15,000 of rental income has £55,000 of qualifying income and is in scope from April 2026, even though neither source alone tops £50,000.
Limited companies and partnerships
MTD for Income Tax applies to individuals, not companies, so a limited company is out of scope for it. MTD for Corporation Tax has been shelved with no confirmed start date. A VAT-registered company still follows MTD for VAT. Partnerships are not yet mandated for MTD for Income Tax and HMRC has not set a date, though a VAT-registered partnership must comply with MTD for VAT. One trap for directors: if you personally earn £50,000 or more from self-employment or rental income (dividends and salary do not count), you can be caught by MTD for Income Tax as an individual.
Getting ready
The single most useful step for any business heading into an MTD mandate is to start keeping digital records now. That way your first quarterly update is a formality rather than a scramble. This checker gives you a clear read on where you stand, but always confirm your position against the latest HMRC guidance, as thresholds and dates can change.