What is MTD for Income Tax?
Making Tax Digital (MTD) for Income Tax is a UK government initiative that requires eligible self-employed individuals and landlords to keep digital records and submit tax information to HMRC using compatible software.
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Quick definition
MTD for Income Tax is the part of the Making Tax Digital programme that requires eligible sole traders and landlords to maintain digital records and submit information to HMRC using compatible software.
It forms part of the government’s wider Making Tax Digital programme to modernise tax reporting.
Who does MTD for Income Tax apply to?
MTD for Income Tax applies to self-employed individuals and landlords with qualifying property income who currently use Self-Assessment.
It does not currently apply to all taxpayers who complete a Self-Assessment tax return.
For example, it does not currently apply to individuals who only need to declare income such as dividends, savings interest, or pension income above the personal allowance.
When does MTD for Income Tax become mandatory?
MTD for Income Tax is separate from Self-Assessment and is mandatory for sole traders and landlords who fall within its scope.
It is introduced in stages based on gross annual income:
- Gross annual income above £50,000: MTD for Income Tax became a legal requirement from April 2026.
- Gross annual income above £30,000: MTD for Income Tax will become a legal requirement from April 2027.
- Gross annual income above £20,000: MTD for Income Tax will become a legal requirement from April 2028.
The government has said it is consulting on extending MTD for Income Tax to people with gross income below £20,000, but no further implementation dates have been announced.
Can you join MTD for Income Tax voluntarily?
Some sole traders and landlords can choose to join MTD for Income Tax voluntarily before they are legally required to do so.
Anyone who is not within the scope of MTD for Income Tax but still needs to declare Income Tax outside of full-time employment should continue using the Self-Assessment system.
Related terms
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HMRC signed me up for MTD for Income Tax. What should I do now?
From September 2026, HMRC will sign up taxpayers who are required to use MTD for Income Tax but haven’t registered for it.
