Making Tax Digital (MTD) is HMRC's plan to move the UK tax system online. Instead of filing one Self Assessment return at the end of the tax year, you submit quarterly updates using HMRC-recognised software.

The idea: keep your records digitally, submit updates every three months, and end the year with a final declaration. HMRC gets your data faster, and you stay on top of your tax bill throughout the year.

Who does MTD affect?

MTD for Income Tax (MTD ITSA)

  • Sole traders and landlords with qualifying income over £50,000 — mandatory from April 2026
  • Sole traders and landlords with qualifying income between £30,000 and £50,000 — mandatory from April 2027
  • Below £30,000 — not yet confirmed

MTD for VAT

  • Already mandatory for all VAT-registered businesses since April 2022 (regardless of turnover)

Who's caught?

  • Sole traders (freelancers, contractors, self-employed)
  • Landlords (UK residential and commercial)
  • NOT limited companies — MTD for Corporation Tax is not yet confirmed

What do you actually have to do?

  1. Choose HMRC-recognised software — your software must be able to submit quarterly updates directly to HMRC
  2. Keep digital records — income, expenses, and adjustments recorded digitally (not in a spreadsheet alone)
  3. Submit quarterly updates — four times a year, summarising income and expenses for each three-month period
  4. Submit an End of Period Statement (EOPS) — by 31 January after the tax year ends, confirming your final figures
  5. Final declaration — by 31 January, submit any other income (employment, savings, dividends)

Key dates for 2026/27

Date Deadline
7 August 2026 Q1 quarterly update (6 April – 5 July)
7 November 2026 Q2 quarterly update (6 July – 5 October)
7 February 2027 Q3 quarterly update (6 October – 5 January)
7 May 2027 Q4 quarterly update (6 January – 5 April)
31 January 2028 End of Period Statement (EOPS) + final declaration