HMRC Guide 2026
Making Tax Digital
Income Tax — MTD
Income Tax — MTD
From 6 April 2026 the rules change for many self-employed people. Find out if MTD affects you and what you need to do before the deadline.
6 Apr 2026
MTD Income Tax starts
£50,000+
Income threshold 2026
Quarterly
Updates required to HMRC
What is MTD?
A Government Initiative to
Modernise Tax Reporting
Modernise Tax Reporting
Making Tax Digital (MTD) for Income Tax is a government initiative to modernise and simplify tax reporting. From 6 April 2026, many self-employed individuals and landlords will be required to keep digital records and submit quarterly income tax updates to HMRC.
This is not optional for those above the threshold. It is a legal requirement. Failing to comply could result in penalties and interest charges.
The good news — if you are already working with us, we will handle your MTD compliance as part of your plan.
Digital record keeping required
All income and expense records must be kept digitally using HMRC compatible software.
Quarterly updates to HMRC
Submit income and expense updates every 3 months instead of one annual return.
Annual end of year declaration
Finalise your tax at year end confirming accuracy of all quarterly data submitted.
Rollout Schedule
MTD Income Tax Rollout Dates
April 2026
Over £50,000
Sole traders and landlords with gross income over £50,000 must comply
First wave
April 2027
Over £30,000
Threshold drops — more sole traders and landlords become affected
Second wave
April 2028
Over £20,000
Threshold drops again — most sole traders across the UK are affected
Third wave
Key Requirements
What MTD Means In Practice
Hover each card to find out exactly what is required from you.
Digital Records
All records must be kept digitally
Digital Records
Keep all income and expenditure records digitally using software compatible with HMRC systems. Paper records alone are no longer acceptable.
Quarterly Updates
Submit to HMRC every 3 months
Quarterly Updates
Submit income and expense updates to HMRC every three months. This gives HMRC a running picture of your taxable income throughout the year.
Year End Declaration
Finalise at end of tax year
Year End Declaration
At year end you submit a final declaration confirming your quarterly data is correct and complete. This replaces your traditional Self Assessment return.
Compatible Software
Must use HMRC approved software
Compatible Software
You must use software that HMRC has recognised as MTD compatible. We will set this up for you and handle all submissions on your behalf.
Who Is Affected
Are You Required to
Comply with MTD?
Comply with MTD?
You will need to comply with Income Tax MTD if your gross income from self-employment or property rental exceeds the relevant threshold. This includes income from all your businesses combined. If you run two businesses their combined income is what counts.
Sole Traders
Freelancers, taxi drivers, builders, delivery drivers, barbers — anyone self-employed with gross income over the threshold.
Landlords
Property owners with rental income exceeding the threshold must also comply with MTD for Income Tax.
Multiple Income Sources
If you have multiple businesses or rental properties their combined gross income determines whether you must comply.
Understanding the Threshold
What Counts as
Gross Income?
Gross Income?
Gross income means total turnover or receipts before deducting any expenses. This includes income from all sources combined.
Business Revenue
Sales, services, fees, and all income from your business activities before any expenses are deducted.
Rental Income
All rental income from properties you own and let out, regardless of expenses or mortgage costs.
Combined Sources
Income from all businesses and properties combined. Two small businesses may together exceed the threshold.
What You Must Do
Three MTD Requirements
01
Digital Record Keeping
Keep all income and expenditure records digitally using software compatible with HMRC systems. Paper records alone are not acceptable.
02
Quarterly Submissions
Submit income and expense updates to HMRC every three months. Four submissions per year giving a running picture of your taxable income.
03
Annual Declaration
Finalise your tax submission at year end with a declaration confirming the accuracy of all quarterly data submitted to HMRC.
Do Not Leave This Too Late
Failing to comply with Income Tax MTD after 6 April 2026 — if you are required to — could result in penalties and interest charges from HMRC. The time to prepare is now, not the week before the deadline.
How Platform Accountants Can Help
We Handle Your MTD
Compliance Completely
Compliance Completely
You do not need to worry about software, quarterly deadlines, or whether your records are correct. We take care of everything. All you do is send us your income and expenses — the same as you do now.
Set up simple digital bookkeeping tools suited to your business
Prepare and submit your quarterly income updates efficiently
Handle your end of year declaration and final tax submission
Keep you informed about your tax position throughout the year
Direct contact via WhatsApp, phone and email — reply within 1 day
Ready to Get MTD Ready?
Find Out if MTD
Affects You Today
Affects You Today
Contact us for a free personalised assessment. We will tell you exactly whether you are affected, what you need to do, and how we can handle it all for you.
