What Is Making Tax Digital for Income Tax (MTD for IT)?
Making Tax Digital for Income Tax is HMRC's new system for reporting Income Tax. It applies to sole traders and landlords and replaces the single annual tax return with four quarterly submissions and a Final Declaration.
Quarterly submissions are reports of your income and expenses and must be submitted to HMRC every quarter. These are not full tax returns and no tax is due at the point of submission. Under the new rules, you must use HMRC-recognised MTD IT software to submit your quarterly returns.
If you have multiple self-employed trades and you are a landlord, you will be required to submit separate quarterly updates for each trade and your rental income and expenses.
We will continue to prepare and file your year-end Self Assessment return, now referred to as your Final Declaration, as usual. The Final Declaration will confirm your annual tax position with HMRC.
MTD for IT Timeline: From 2026 Onwards
Your start date depends on your total qualifying income, which includes all business income before expenses and all rental income from property.
Quarterly Submission Deadlines (2026–27)
Summary reports of your income and expenses must be submitted to HMRC every quarter. These are not full tax returns and no tax is due at the point of submission, but they must be filed on time.
| Quarter | Submission Deadline |
|---|---|
| Quarter 1 (6 April 2026 to 5 July 2026) | 7 August 2026 |
| Quarter 2 (6 July 2026 to 5 October 2026) | 7 November 2026 |
| Quarter 3 (6 October 2026 to 5 January 2027) | 7 February 2027 |
| Quarter 4 (6 January 2027 to 5 April 2027) | 7 May 2027 |
* Please note that the default quarter dates set by HMRC are as above. We recommend electing to change these so they align with the calendar year, which we have explained in detail on this website.
You have received this communication as Making Tax Digital for Income Tax will apply to you, and you will be required to file quarterly returns as of April 2026.
For a detailed explanation and resources on MTD IT, please refer to Making Tax Digital for Income Tax Key Information.
Next Steps & How to Prepare
As you are both self-employed and a landlord, please refer to both of the sections below for guidance specific to each part of your income.
Self-Employed Guidance
Registration, software options, and filing choices for your self-employed trade(s).
View self-employed guidance →Landlord Guidance
Registration, software options, and filing choices for your rental income.
View landlord guidance →Not sure where to start?
If you have any questions about how MTD applies to your specific circumstances, please Get In Touch and we'll be happy to walk you through it.
Get in Touch
If you'd like to know more about Making Tax Digital for Income Tax, or how it affects you, please feel free to contact us and we'll be happy to walk you through the process and answer any questions you have.
Making Tax Digital for Income Tax: Key Information
Expand the sections below to learn more.
Why is Self Assessment changing?
Making Tax Digital for Income Tax (MTD for IT) is HMRC's digital replacement for the traditional Self Assessment system and is part of the government's plan to digitalise the UK tax system. The key reasons for the change include reducing tax errors through digital systems, closing the tax gap with more accurate reporting, aligning tax reporting with modern digital business tools, and making tax compliance easier and more efficient overall.
How does Self Assessment currently work?
The current Self Assessment system requires one annual tax return submission. You can submit via the HMRC online portal, paper forms by post, compatible software, or through your accountant or bookkeeper. The key deadlines are 31 October for paper submissions and 31 January for online submissions. You keep digital or paper records throughout the tax year and compile them into one annual return at the end of the year.
How will MTD for Income Tax change Self Assessment?
MTD for Income Tax changes how you submit your tax information. Instead of one annual return, you will send regular digital updates:
- HMRC’s online portal will be replaced by MTD IT-compatible software
- Paper filing will be replaced by digital submissions
- Annual-only reporting will be replaced by quarterly updates
- You’ll submit four quarterly updates using MTD IT-compatible software throughout the tax year
- You’ll still submit one final declaration by 31 January for additional income sources such as savings and investments
- Digital record-keeping becomes mandatory — records must be maintained in compatible software
What software do I need for MTD for Income Tax?
You’ll need software that’s compatible with HMRC’s systems. This software must be able to keep digital records and send your quarterly updates and final declaration directly to HMRC.
A full list of approved software by HMRC can be found here: Find software that works with Making Tax Digital for Income Tax →
Are there any benefits to the changes?
MTD for Income Tax offers several advantages:
- Real-time tax estimates: HMRC provides ongoing tax liability estimates so you can prepare for tax bills throughout the year
- Error correction: Mistakes can be fixed in your next quarterly update rather than waiting until the end of the year
- Improved business insights: Quarterly reporting encourages consistent record-keeping and regular financial reviews
What if I have more than one business?
If you have more than one self-employed business or property, or are both a sole trader and a landlord, you combine the income and expenses from all of them and send one set of quarterly updates to HMRC for all your business activities. You’ll only need to submit one final declaration that covers all income sources.
Do I need to keep paper receipts with MTD IT?
No. The rules require digital records, which means you can take photos of your receipts to create digital copies. Once you have a digital version stored securely, you can dispose of the paper receipt — the digital copy satisfies HMRC’s record-keeping requirements. Tools like Hubdoc and Dext make this easy.
What if my income is below the MTD IT thresholds?
If your income from self-employment or property rental doesn’t exceed the MTD IT thresholds (starting at £50,000 from April 2026), you’ll continue using the current Self Assessment system with no changes to how you file your annual tax return.
Further reading
For a detailed overview of Making Tax Digital and self-assessment changes, the following HMRC pages may be helpful:
Making Tax Digital for Income Tax for sole traders and landlords: step by step →
Find out if and when you need to use Making Tax Digital for Income Tax →
Use Making Tax Digital for Income Tax →