This guide gives the general overview of Making Tax Digital. For the most current, landlord-focused detail on MTD for Income Tax — including the 2026/2027/2028 thresholds, software costs, and a 6-month prep checklist — see our dedicated cornerstone.
Making Tax Digital (MTD) is one of the biggest changes to the UK tax system in a generation. HMRC's goal is simple: move all tax record-keeping and submissions online, eliminating paper returns and reducing errors.
What exactly is Making Tax Digital?
Run the numbers yourself
MTD requires businesses and individuals to keep digital records and submit tax information to HMRC using compatible software — such as Xero, FreeAgent or QuickBooks. Instead of filing one annual return, you'll submit updates quarterly.
Who does it apply to?
MTD for VAT has been in place since 2019. The next major rollout is MTD for Income Tax Self Assessment (ITSA):
- Sole traders and landlords with income over £50,000 — April 2026
- Income over £30,000 — April 2027
- Income over £20,000 — date TBC
What do you need to do?
- Use MTD-compatible software (Xero, FreeAgent or QuickBooks)
- Keep digital records of all income and expenses
- Submit quarterly updates plus a final annual declaration
How Fernside Accounting can help
We're already MTD-ready and can manage your quarterly submissions on your behalf. Book a free 20-min call to get set up.