Making Tax Digital for Income Tax, explained
If you're a sole trader or landlord, MTD replaces the once-a-year paper habit with digital records, four quarterly updates and a final declaration.
Based on your qualifying income
Qualifying income is your total gross income from self-employment and property, before expenses. HMRC uses the tax return from two years before each start date.
Based on your 2024–25 return.
Now in forceBased on your 2025–26 return.
Based on your 2026–27 return.
What you send each year
Then a final declaration by 31 January after the tax year ends, replacing the usual Self Assessment return.
Do I need MTD?
A guide, not tax advice. Some people are exempt or can apply for an exemption.
MTD for landlords
Rent from one property or ten, UK or overseas, joint ownership included. We keep the records and send every update.
MTD help for landlordsMTD for sole traders
We set up the software, keep your records digital and file all four updates plus the final declaration.
MTD help for sole traders