Making Tax Digital for Income Tax, explained properly
Making Tax Digital for Income Tax replaces the annual Self Assessment return with four quarterly updates and a final declaration. It applies to sole traders and landlords with qualifying income over £50,000 from April 2026, £30,000 from April 2027 and £20,000 from April 2028. Qualifying income is gross turnover and rent before expenses.
Everything, in plain English
Written and kept current by chartered accountants, not copied from HMRC’s guidance. If something changes, we update these pages.
We will run the whole thing for £35 a month
Software included, all four quarterly updates filed by us, and your final declaration handled. You send us the records; we deal with HMRC. You never log into a portal.
- Qualifying income review and confirmed start date in writing
- Software chosen, set up and paid for
- Bank feeds connected and a test submission run before it matters
- Every quarterly update filed on time
- Final declaration replacing your Self Assessment return
We will remind you before it matters
MTD for Income Tax hits £30,000 of qualifying income in April 2027. Leave your email and we will tell you when the deadlines that actually apply to you are coming. No newsletter, no sales sequence, just the dates.
Making Tax Digital: the basics
What is Making Tax Digital for Income Tax?
Making Tax Digital for Income Tax (MTD for ITSA) is an HMRC programme requiring sole traders and landlords to keep digital records and submit four quarterly updates plus a final declaration each year, replacing the single annual Self Assessment tax return.
When does Making Tax Digital start?
It began in April 2026 for people with qualifying income over £50,000. It extends to over £30,000 in April 2027 and over £20,000 in April 2028.
Who has to use Making Tax Digital?
Sole traders and landlords whose combined gross self-employment and property income exceeds the threshold for their phase. Partnerships are not yet included, and limited companies are not affected by MTD for Income Tax at all.
What happens to my Self Assessment tax return?
It is replaced by a final declaration, due by the same 31 January deadline. The final declaration sits on top of your four quarterly updates and adds everything else: employment income, dividends, interest, reliefs and adjustments.
Do I need an accountant for Making Tax Digital?
It is not a legal requirement, but five submissions a year instead of one means five chances to be late. An authorised agent can file everything on your behalf so you never have to use HMRC systems directly.