Skip to content
Sign in Get started

Making Tax Digital guide

Making Tax Digital for Income Tax, in plain English.

Who it applies to, when it starts for you, what you have to send to HMRC and by when.

Checked against GOV.UK on . Last updated .

What is Making Tax Digital for Income Tax?

Making Tax Digital (MTD) for Income Tax changes how sole traders and landlords do Self Assessment. Instead of one tax return a year built from a shoebox of receipts, you keep your records in software, send HMRC a short update every quarter, and file your tax return through the same software.

You have to use software that works with MTD. Finantr is one: it builds your records from your bank feed and sends the updates for you.

Who it applies to, and when

It depends on your qualifying income: self-employment and property income added together, before expenses, as shown on your tax return.

  • Over £50,000 Joined 6 April 2026
  • Over £30,000 Joins on 6 April 2027
  • Over £20,000 Joins on 6 April 2028

HMRC decides using an earlier tax return. For example, the income on your 2025-26 return decides whether you join on 6 April 2027.

Some people are exempt or can apply to be. Check on GOV.UK.

Working out what you might owe? Try the free tax calculators, such as the January tax bill calculator.

What you have to do

  1. Keep digital records of your income and expenses in MTD software.
  2. Send a quarterly update to HMRC four times a year. Each one covers the tax year so far.
  3. File your tax return through the same software by 31 January after the tax year ends, and pay what you owe.

Making Tax Digital for Income Tax

Your deadlines, at a glance.

Each quarterly update covers the tax year so far, from 6 April. Then the tax return and any payment are due by 31 January.

Over £50,000

Joined 6 April 2026

Update 1 tax year to 5 July
Update 2 tax year to 5 October
Update 3 tax year to 5 January
Next
Update 4 tax year to 5 April
Tax return and pay what you owe

Over £30,000

Joins 6 April 2027

Update 1 tax year to 5 July
Update 2 tax year to 5 October
Update 3 tax year to 5 January
Update 4 tax year to 5 April
Tax return and pay what you owe

Over £20,000 joins on 6 April 2028. Calendar-quarter filers: same deadlines.

Late updates add up. From April 2027, each late quarterly update earns a penalty point. At 4 points, HMRC charges a £200 penalty.

Never miss one.

Finantr keeps a calendar of every deadline and sends your updates straight to HMRC. Free to start, paid plans from £4.99 a month.

Start free

Dates and penalties from GOV.UK, October 2026.

Common questions

What is Making Tax Digital for Income Tax?

It adds digital records and quarterly updates to Self Assessment for sole traders and landlords. You keep your records in software, send HMRC an update every quarter and file your tax return through the same software. It started on 6 April 2026 for people with qualifying income over £50,000. The threshold falls to £30,000 in April 2027 and £20,000 in April 2028. You have to use HMRC-compatible software to take part.

What counts as qualifying income?

Your self-employment and property income added together, before expenses, as reported on your Self Assessment tax return. A salary, pension or savings interest does not count towards the threshold.

Do I still file a tax return?

Yes. After the four quarterly updates you file your tax return through the same software by 31 January, and pay any tax you owe by then.

What happens if I send an update late?

From April 2027, each late quarterly update earns a penalty point. At 4 points HMRC charges a £200 penalty.

Is Finantr recognised by HMRC?

Yes. Finantr is HMRC recognised software for Making Tax Digital for Income Tax. It sends your quarterly updates to HMRC through HMRC's own Making Tax Digital APIs and keeps HMRC's receipt for every submission.

Let Finantr handle MTD for you.

Finantr connects to your bank, works out your tax as you go and sends your quarterly updates straight to HMRC. Free plan for as long as you like.

Start free today