Written by the TaxTune Editorial Team · Reviewed by our qualified accountants · Updated for 2026
The quick answer Making Tax Digital, or MTD, requires you to keep digital records and report to HMRC through compatible software. It already applies to VAT. MTD for Income Tax begins in April 2026 for self employed people and landlords with qualifying income over £50,000, then extends to lower incomes in the following years.

Who is affected, and when

  1. VAT. Already live. All VAT registered businesses keep digital records and file through software.
  2. Income Tax from April 2026. Self employed people and landlords with qualifying income over £50,000 join first.
  3. From April 2027. Those with income over £30,000 are brought in.
  4. From April 2028. The threshold falls further to £20,000.

What changes under MTD for Income Tax

Instead of one annual return, you keep digital records and send HMRC a quarterly update of your income and expenses, then a final declaration after the year end. It means staying on top of your figures through the year rather than in one January rush, which is actually easier once you are set up.

Not sure if MTD affects you yet?

The thresholds and start dates catch people out. TaxTune checks when you are affected, sets you up with the right software, and handles the quarterly updates so it is one less thing to think about.

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Frequently asked questions

What is Making Tax Digital?

It is HMRC scheme requiring digital record keeping and reporting through compatible software. It applies to VAT now, and to Income Tax from April 2026 for higher income self employed people and landlords.

When does MTD for Income Tax start?

April 2026 for self employed people and landlords with qualifying income over £50,000, then April 2027 for over £30,000, and April 2028 for over £20,000.

What changes under MTD for Income Tax?

You keep digital records and send HMRC a quarterly update of income and expenses, plus a final declaration after the year end, instead of a single annual tax return.

Do I need special software?

Yes. You must keep records and file through MTD compatible software. We can recommend and set up the right option for your business.

What if my income is under the threshold?

You are not required to join until your qualifying income reaches the relevant threshold, but keeping digital records early makes the eventual switch painless.