When does MTD for Income Tax start in the UK?

HMRC phases in MTD for Income Tax Self Assessment from 6 April 2026 using qualifying income thresholds; further reductions apply from 6 April 2027 and 6 April 2028 as set out in legislation and on GOV.UK. Use HMRC’s guidance to see if you are in scope.

Is MTD for Income Tax the same as MTD for VAT?

No. MTD for VAT applies to VAT-registered businesses and has different rules and software lists. MTD for Income Tax applies to certain sole traders and landlords based on qualifying income, with digital records and quarterly updates in scope.

Do I need new software for MTD for Income Tax?

If you are mandated into MTD for Income Tax, you must use HMRC-compatible software to keep digital records and send updates, as described on GOV.UK. HMRC publishes lists of compatible products.

Last updated: 2026-03-17

MTD for Income Tax (ITSA): UK timelines & what to prepare

HMRC is extending Making Tax Digital beyond VAT. This page summarises the direction of travel for Income Tax Self Assessment—not personal advice. Always confirm your position using Use Making Tax Digital for Income Tax and Work out your qualifying income for MTD for Income Tax on GOV.UK, and with your accountant.

What MTD for Income Tax is

MTD for Income Tax requires eligible taxpayers to keep digital records and report periodically through compatible software. The aim is to reduce errors and move reporting closer to real-time—parallel in spirit to MTD for VAT, but with rules tailored to unincorporated businesses and property income.

Phased mandation (per GOV.UK / HMRC)

Who must join depends on qualifying income (not the same as total income—see HMRC’s rules). HMRC sets mandation in stages:

From the tax year beginning 6 April 2026: if your qualifying income is more than £50,000.
From 6 April 2027: if your qualifying income is more than £30,000.
From 6 April 2028: mandation extends using a £20,000 threshold (HMRC has published the reduction from the £30,000 threshold to £20,000 from this date).

Work through the calculation in Work out your qualifying income for Making Tax Digital for Income Tax. Exemptions and deferrals exist for some taxpayers—see Find out if you can get an exemption from MTD for Income Tax.

Figures and dates are as stated in GOV.UK guidance and linked HMRC publications; legislation can change—always read the latest GOV.UK pages.

What you will do in scope

HMRC requires mandated taxpayers to use compatible software to keep digital records, send quarterly updates, submit an end of period statement, and complete a final declaration. Payment deadlines and amounts follow normal Income Tax rules (see GOV.UK). Penalties are explained in HMRC guidance on using MTD for Income Tax.

Official sources (bookmark these)

How this links to your software stack

MTD for Income Tax pushes “digital records” to the foreground. Most businesses will pair ledger or tax software with disciplined processes for bank reconciliation, supplier documents, and property or trading income evidence. Tools that only capture receipts may not be enough on their own—you need end-to-end traceability your adviser is happy to sign off.

For the gap between posting transactions and proving balances with suppliers, see AP automation vs bookkeeping software and our supplier reconciliation hub.

Disclaimer

Educational summary only. Tax law and MTD rules change; rely on HMRC and professional advice for compliance.