The first phase of MTD started in April 2019, mandating that most VAT registered businesses with taxable turnover over £85,000 keep digital tax records. The next phases of MTD include:
April 2022: MTD for VAT will be extended to all VAT registered businesses, including those below the VAT threshold.
April 2026: The mandation of MTD for Income Tax Self Assessment will be introduced from April 2026, with businesses, self-employed individuals, and landlords with income over £50,000 mandated to join first.
April 2026: The earliest possible date for MTD for Corporation Tax after the government announced it wouldn’t be mandated before then.
April 2027: MTD for Income Tax Self Assessment will then apply for businesses, self-employed individuals, and landlords with income over £30,000.