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Making Tax Digital (MTD) Readiness Checker

Check whether you are required to use MTD, when your deadline falls, and what steps to take next.

2026/27 HMRC rates No signup No data stored Browser-only calculation

April 2026

Income > £50,000

Deadline passed — register now

April 2027

Income > £30,000

Prepare now

April 2028

Income > £20,000

Plan ahead

Check Your MTD Status

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Status Badge

MTD Status Message

Your MTD Compliance Action Steps

What is Making Tax Digital for Income Tax?

Making Tax Digital for Income Tax (MTD for ITSA) is a government initiative replacing the traditional annual Self Assessment for most self-employed individuals and landlords. Instead of filing one return per year, you must now keep digital records and submit quarterly updates of income and expenses to HMRC through approved software.

The rollout started in April 2026, with additional phases planned for April 2027 and 2028 as thresholds drop.

MTD Timeline (April 2026 / April 2027 / April 2028)

April 2026 (Live Now)

Mandatory for self-employed and landlords with qualifying gross income over £50,000. The deadline has passed — if you haven't registered, you need to act immediately to avoid penalties.

April 2027

Mandatory for those with qualifying gross income between £30,001 and £50,000. You have around one year to prepare. Start transitioning to digital record-keeping now.

April 2028

Mandatory for those with qualifying gross income between £20,001 and £30,000. The government has signalled intention to eventually lower the threshold further.

What Do I Need to Do to Comply?

  1. Check your qualifying income: Add up all your self-employment and rental property gross income for the tax year.
  2. Register for MTD: Sign up through your HMRC Government Gateway account or ask your accountant to do this for you.
  3. Choose HMRC-approved software: Select a compatible software platform such as FreeAgent, QuickBooks, Xero, or Sage.
  4. Start keeping digital records: Record every transaction digitally as you go. Paper receipts should be digitised immediately.
  5. Submit quarterly updates: Send four quarterly summaries to HMRC per year, with a final end-of-period statement at year end.

Which software should I choose?

Choosing MTD-compatible software is critical. HMRC maintains a list of approved vendors. Platforms like FreeAgent (which is free if you have a NatWest business account), QuickBooks, and Xero offer direct HMRC filing integrations. Ensure the software you choose fits your budget and supports multiple income streams if you are both self-employed and a landlord.

Making Tax Digital FAQs

What is Making Tax Digital for Income Tax?
Making Tax Digital (MTD) for Income Tax is an HMRC initiative requiring self-employed individuals and landlords to keep digital business records and submit quarterly summaries of income and expenses to HMRC via approved software — instead of just filing one annual Self Assessment return.
Who does MTD for Income Tax affect?
MTD for Income Tax applies to self-employed individuals and landlords with combined qualifying gross income above: £50,000 (required from April 2026), £30,000 (from April 2027), £20,000 (from April 2028). If your income is below these thresholds, you are not currently required to use MTD.
What software do I need for MTD?
HMRC requires that you use MTD-compatible software to keep digital records and submit your quarterly updates. Popular options include FreeAgent, QuickBooks, Xero, and Sage. Spreadsheets alone are not sufficient unless they are linked to HMRC-approved bridging software.
What are the quarterly MTD submission deadlines?
Under MTD for Income Tax, you submit four quarterly updates per tax year. The quarters run April to June (due 5 August), July to September (due 5 November), October to December (due 5 February), and January to March (due 5 May). A final declaration replaces the annual Self Assessment return.
What happens if I miss the MTD deadline?
Missing the MTD deadline results in a points-based penalty system. Each missed deadline earns one penalty point. When you reach the penalty threshold (4 points for quarterly filers), you receive a £200 fine. Points expire after 24 months of full compliance.
What is the difference between MTD and Self Assessment?
Self Assessment is the current annual system where you report all income and expenses once a year. MTD replaces most of this with quarterly digital submissions throughout the year, improving HMRC's visibility of your finances in real time. A final "end of period statement" and declaration still takes place at the year end.
Can I join MTD voluntarily before it becomes mandatory?
Yes. You can sign up for MTD for Income Tax voluntarily even if your income is below the mandatory threshold. This can help you get ahead of the requirements and may simplify your year-end process.
Does MTD affect limited companies?
No. The current MTD for Income Tax rollout only applies to self-employed individuals and landlords. Limited companies have separate requirements under MTD for VAT (if VAT-registered), but there is no MTD for Corporation Tax at this time.
What does qualifying income mean for MTD?
Qualifying income for MTD purposes is the gross (before expenses) income from self-employment and property rental combined. It does not include employment income, pension income, investment income, or capital gains.
Do I need a separate software account for each income source?
No. Most MTD-compatible software allows you to manage multiple income sources (e.g. self-employment and rental property) within a single account, and submit combined quarterly updates to HMRC.