Making Tax Digital (MTD) is a government plan that changes how you send tax information to HMRC. You must use compatible software to keep digital records and send updates every three months. This replaces the single annual filing with a real-time view of your tax.
Who is affected
You need to follow MTD rules if you are a landlord or self-employed business owner with a total qualifying income over:
£50,000 (starting 6 April 2026)
£30,000 (starting 6 April 2027)
Digital record requirements
A digital record is an electronic copy of your business transactions. This must include the date, amount, and category for all income and costs. You cannot rely on paper receipts alone; you must store this data in software like FreeAgent.
The Final Declaration
MTD does not remove the need for a final check. You must still submit a ‘Final Declaration’ by 31 January after the tax year ends. This pulls your quarterly data together to fix your final tax bill.
More information
If you need more detail on MTD, use these resources:
GOV.UK: Search for ‘MTD for Income Tax’ on the HMRC website for the latest legal rules.
The Mettle Blog: Read our ‘Am I affected by MTD?’ guide for examples for sole traders and landlords.
Your Accountant: Speak to a professional to check your specific financial position and confirm your start date.