What is MTD?
Making Tax Digital, decoded.
It's HMRC's plan to move tax records online. Fewer forgotten receipts, more regular check-ins. Here's what that really means.
The basics
Four things to know
Digital records
Income and expenses are kept in MTD-compatible software or bridging software linked to a spreadsheet.
Quarterly updates
Every three months you send HMRC a summary. It's not a tax bill, just a progress report.
Compatible software
HMRC doesn't provide the software itself. You pick an approved product that suits you.
Same tax rules
What you owe doesn't change. Only how you record and report it does.
Who and when
Phased by qualifying income
Qualifying income is your gross self-employment turnover plus gross property income, combined.
| Start date | Qualifying income | Based on tax year |
|---|---|---|
| 6 April 2026 | Over £50,000 | 2024/25 |
| 6 April 2027 | Over £30,000 | 2025/26 |
| 6 April 2028 | Over £20,000 | 2026/27 |
Read the guides for sole traders and landlords.
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