Making Tax Digital
explained simply
HMRC's biggest tax change in a generation. Understand who's affected, when the deadlines hit, and how to stay compliant — without the jargon.
Key rollout dates
MTD for Income Tax is being phased in over three years based on qualifying income.
Phase 1
6 April 2026
Mandatory for income over £50,000
Phase 2
6 April 2027
Threshold drops to £30,000
Phase 3
6 April 2028
Threshold drops to £20,000
Guides by taxpayer type
MTD works slightly differently depending on your income source. Choose the guide that fits you.
Explore MTD topics
Dive deeper into specific areas of Making Tax Digital.
What Making Tax Digital requires
Digital record keeping
You must use MTD-compatible software to maintain digital records of all business income and expenses. Spreadsheets alone won't be enough — they need to feed into recognised software.
Quarterly updates to HMRC
Every quarter, you submit a summary of income and expenses through your software. This gives HMRC — and you — a running view of your tax position throughout the year.
End of Period Statement (EOPS)
After each accounting period, you confirm the figures are complete and make any adjustments (like capital allowances) before finalising.
Final declaration
Replaces the Self Assessment tax return. You declare any additional income, claim reliefs, and confirm your total tax liability for the year.
Frequently asked questions
What is Making Tax Digital?
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Making Tax Digital (MTD) is an HMRC initiative that requires businesses, self-employed individuals, and landlords to keep digital records and submit income tax updates quarterly using compatible software — replacing the annual Self Assessment tax return.
Who does MTD for Income Tax affect?
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Anyone with annual gross income from self-employment and/or property exceeding the threshold. From April 2026 that's £50,000, dropping to £30,000 in April 2027 and £20,000 in April 2028. Employment income (PAYE) doesn't count.
What are quarterly updates?
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Every three months you submit a summary of your income and expenses to HMRC using MTD-compatible software. The four quarters align roughly with the tax year: Q1 (6 Apr – 5 Jul), Q2 (6 Jul – 5 Oct), Q3 (6 Oct – 5 Jan), Q4 (6 Jan – 5 Apr).
Do I still need to file a Self Assessment return?
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The traditional SA100 tax return is replaced by a 'final declaration' submitted through your MTD software after the end of the tax year. This is where you declare any additional income sources and confirm your figures.
Is Regulas HMRC-recognised MTD software?
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Regulas is being built to meet all HMRC MTD for Income Tax requirements. We're currently in pre-launch and accepting waitlist sign-ups — join to be among the first to get access when we launch.
Get ready for MTD with Regulas
Purpose-built software for UK sole traders and landlords. Bank feeds, automated categorisation, quarterly HMRC submissions — all in one place.