Making Tax Digital for Income Tax explained

Who it applies to, the start dates, and what you need to do each quarter.

The short answer

Making Tax Digital for Income Tax (MTD) changes how some self-employed people and landlords report to HMRC. If it applies to you, you must keep digital records, send HMRC short updates every quarter, and finish with your tax return by 31 January. It started on 6 April 2026 for people with qualifying income over £50,000, and is being extended to lower incomes.

Who has to use it?

Over £50,000 qualifying income: from 6 April 2026 (based on your 2024/25 tax return).
Over £30,000: from 6 April 2027 (based on 2025/26).
Over £20,000: from 6 April 2028 (based on 2026/27).
£20,000 or less: you are exempt.

Qualifying income is your total income from self-employment and property before expenses, taken from your previous year's tax return. Wages, pensions and dividends do not count. If you own property jointly, only your share counts. HMRC checks your tax return each year to decide whether you must join, and from September 2026 it is signing up people who need to use MTD and have not done so themselves.

What you have to do

Keep digital records of your self-employment and property income and expenses. Spreadsheets are allowed. If you use more than one software product, they must be digitally linked. Keep the records for at least five years after the 31 January filing deadline.
Send a quarterly update with totals for each income and expense category. You do not send individual receipts.
Submit your tax return and final declaration by 31 January after the end of the tax year.

You need compatible software, or a spreadsheet with "bridging software" that sends the figures to HMRC. Free products exist for simple tax affairs, with some limits. HMRC does not recommend products but has a software finder tool on GOV.UK.

Quarterly deadlines

If your tax year runs from 6 April to 5 April, the standard quarters and deadlines are:

6 April to 5 July: send by 7 August.
6 April to 5 October: send by 7 November.
6 April to 5 January: send by 7 February.
6 April to 5 April: send by 7 May.

You can instead use calendar-quarter periods (1 April to 30 June and so on), which have the same deadlines. Each update covers the whole year so far, so you can correct earlier figures without sending the earlier updates again.

Penalties and exemptions

Late submissions are dealt with through a points system. When you reach 4 points you get a £200 penalty, and a further £200 for each later missed deadline. GOV.UK says points for quarterly updates apply to tax years after 2026/27, so check the current page for the position that applies to you.
You are automatically exempt if your qualifying income is £20,000 or less, if you do not have a National Insurance number, and in some other cases listed on GOV.UK.
You can apply for an exemption if it is not reasonable for you to use digital tools because of age, health or disability, religious beliefs, or having no internet access where you live or work. Not being familiar with software, or the cost, is not enough.

Where to learn more

This guide is for information only and is not tax, benefits or financial advice. Rules and amounts can change, so check the official pages before you rely on them.