Making Tax Digital for Income Tax

Are you ready for MTD?

Answer five quick questions to find out whether Making Tax Digital applies to you, when it starts, and what to do next.

MTD for Income Tax: the essentials

What is Making Tax Digital for Income Tax?

Sole traders and landlords above the income threshold must keep digital records in HMRC-recognised software, send quarterly updates to HMRC, and submit a final declaration by 31 January after the tax year. It replaces the traditional Self Assessment return for those affected.

What counts as qualifying income?

Your total gross income (turnover before expenses) from self-employment and property. For jointly owned property, only your share counts. Employment income, pensions, dividends and your share of partnership profits do not count.

When are the quarterly updates due?

For the standard quarters, updates are due by 7 August, 7 November, 7 February and 7 May. The final declaration for the year is due by 31 January following the end of the tax year.

Can I get an exemption?

Some people are exempt automatically, such as partnerships (for now), trustees and personal representatives. Others can apply, for example if it is not reasonable for you to use software because of age, health, disability, religion or location. We can help you check and apply.