HMRC’s ‘Making Tax Digital’ programme is a key element of HMRC’s digital transformation plans. This flagship project, first announced in 2015, is being phased in over a number of years. Making Tax Digital (MTD) for VAT was the first element of the programme to be rolled out, beginning in April 2019. Making Tax Digital (MTD) for income tax is now due to be introduced in phases, beginning in April 2026.
Scope
Making Tax Digital (MTD) for income tax will eventually affect self-employed individuals and individuals receiving property income with annual gross income of more than £20,000 from their self-employment and property letting. Those with annual gross income of £20,000 or less from these sources are not in scope of MTD. See the Gross income section below for more details on calculating this figure.
Example: start date for new self-employment
Calvin started a new garden maintenance self-employment on 6 October 2025. His 2025/26 tax return showed a loss but his 2026/27 tax return showed the following details for his self-employment:
Gross income £35,052
Expenses £14,965
Net profit £20,087
As his annual gross income is more than the MTD threshold of £30,000 (from April 2027) Calvin will need to follow the MTD rules from April 2028. (This is the April after the filing deadline of 31 January 2028 for his 2026/27 tax return.)
You can choose to follow the MTD rules voluntarily if you want to, even if you are not legally required to do so.
Partnerships
The government have confirmed that MTD will become mandatory for partnerships in due course, but it is not yet known when this will be.
Your start date
Making Tax Digital (MTD) was originally due to become mandatory from April 2024 however the timetable for compulsory compliance with the rules was revised in December 2022 and it is now as follows:
- From 6 April 2026, for those with annual gross income of over £50,000 from self-employment and property letting
- From 6 April 2027, for those with annual gross income of more than £30,000 and up to £50,000 from self-employment and property letting
The date for when those with annual gross income of more than £20,000 and up to £30,000 from self-employment and property letting have to comply with MTD has not yet been confirmed by the government but it is expected to be by July 2029 at the latest.
HMRC will initially review all self assessment tax returns filed for the 2024/25 tax year to identify those who need to follow the MTD rules from April 2026. Therefore, assuming you file your 2024/25 tax return before the deadline of 31 January 2026, if it shows that you have gross income from self-employment and/or rental income of more than £50,000 you should receive a letter from HMRC in February 2026 to notify you that you need to comply with MTD from 6 April 2026.
If you wait until you receive a letter from HMRC telling you that you are in scope of MTD from 6 April 2026 you will not have very long to get prepared. If you know that you will have to follow the MTD rules from April 2026, it might be a good idea not to delay getting ready for MTD for too long so you have enough time to be fully prepared. Our Getting prepared section below explains what you will need to do.
HMRC have created a tool to help people check when they will be required to follow the MTD rules, so follow the link below if you are not sure of your position:
Find out if and when you need to use Making Tax Digital for Income Tax – GOV.UK
If you need any help then please give us a call or fill out our contact form here.
