MTD for Income Tax: are you ready?
Making Tax Digital for Income Tax is the biggest change to tax for the self-employed and landlords in a generation, but getting ready is mostly about a few practical steps. Here’s how to check whether you’re affected and what to sort out first, well before it starts on 6 April 2026.
Reviewed July 2026. Figures are correct at the date of review. Always check GOV.UK for the latest.
The short answer
You’re “ready” for MTD for Income Tax when you know whether it applies to you and when, your records are kept digitally in MTD-compatible software, and you have a plan for filing four quarterly updates plus a final declaration each year. If any of those isn’t true yet, this is your to-do list.
Step 1: Check if it applies to you
Add up your gross income from self-employment and property: turnover and rents, before you take off any expenses. That combined figure is your “qualifying income”. Compare it to the phased thresholds:
- Over £50,000: you join from 6 April 2026.
- Over £30,000: you join from April 2027.
- Over £20,000: you join from April 2028.
Not sure which side of the line you’re on? Our who-must-comply guide walks through it, and our 2-minute quiz gives you a quick steer.
Step 2: Get your records digital
This is the big one. Under MTD you can’t keep your books on paper or in a plain spreadsheet and type the numbers into HMRC’s online form once a year. You’ll need MTD-compatible software that stores your records digitally and files directly with HMRC. Moving early (ideally now) means you’re not scrambling to learn new software and hit a deadline at the same time.
Not sure what to pick? See best MTD-compatible software.
Step 3: Understand what you’ll file
Instead of one Self Assessment return, you’ll send a short quarterly update four times a year and a final declaration after the tax year ends. It’s more touchpoints, but each one is smaller, and if your records are up to date, most of the work is already done. See quarterly updates explained and the deadlines.
Step 4: Make a plan (or hand it over)
Decide who’s doing what: keeping the records, checking the numbers each quarter, and filing on time. For a lot of people the simplest answer is to hand the whole thing to an accountant on a fixed monthly fee, so MTD becomes something that just happens in the background, with no deadlines to remember and no penalties to risk.
Get the free MTD readiness checklist
A one-page checklist to see exactly where you stand and what to do before Making Tax Digital starts. Enter your details and we’ll unlock it instantly.
Want the human version? Take our 2-minute quiz for a tailored recommendation, or get in touch and we’ll tell you exactly where you stand.
Frequently asked questions
Common questions about getting ready for MTD.
How do I know if MTD for Income Tax applies to me?+
Add up your gross income from self-employment and property (before expenses). If the combined total is over £50,000, you join from 6 April 2026. Lower thresholds of £30,000 and £20,000 follow in April 2027 and April 2028.
What’s the single most important thing to do now?+
Get your record-keeping digital. If your income and expenses live on paper or in a plain spreadsheet, moving to MTD-compatible software early makes everything else (quarterly updates and the final declaration) straightforward.
I’m below the threshold. Do I still need to do anything?+
You’re not required to join in April 2026, but the thresholds drop in 2027 and 2028, so many people will be brought in over time. Getting your records digital early means no rush later, and you can join voluntarily if you prefer.
Can you just handle all of this for me?+
Yes, that’s exactly what we do. We confirm whether and when MTD applies to you, set up the right software, keep your records up to date, and file every quarterly update and your final declaration on a fixed monthly fee.
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