Tax & compliance
When does Making Tax Digital start?
By Kaiser Khan · Updated 17 July 2026
The Income Tax phasing timeline
MTD for Income Tax arrives in three waves based on qualifying income (gross self-employment plus property income): over £50,000 from 6 April 2026, over £30,000 from April 2027, and over £20,000 from April 2028. HMRC estimates the first wave covers around 780,000 sole traders and landlords, with roughly 970,000 and 900,000 more joining in the later waves.
What each start date means in practice
From your start date you must keep digital records, send quarterly updates through MTD-compatible software, and complete a final declaration after the year end. The first quarterly updates for the April 2026 wave cover 6 April to 5 July 2026. Tax payment dates themselves do not move.
What is not happening
Two persistent myths are worth killing. First, MTD for Corporation Tax is not coming — HMRC confirmed in its July 2025 Transformation Roadmap that it does not intend to introduce it. Second, MTD does not mean quarterly tax bills; payment stays on the existing self assessment timetable. MTD for VAT is the exception that is already here: it has applied to all VAT-registered businesses since 2022.
How to check your date
Work out your qualifying income from your latest tax return — gross self-employment plus rental income — and match it against the thresholds. If you are near a line, assume you will be caught eventually and prepare now: separate business banking, cloud software, and an accountant who has MTD in the monthly fee rather than as a surprise extra.
People also ask
Has MTD for Income Tax been delayed again?
The programme has slipped several times over the years, but the current dates stand: 6 April 2026 for income over £50,000, April 2027 for over £30,000 and April 2028 for over £20,000. HMRC is writing to taxpayers it believes are in the first wave.
What if my income fluctuates around the threshold?
HMRC tests qualifying income against your filed returns. Dropping below the threshold for a year does not automatically remove you once you have joined — sign-off rules apply. Take advice before assuming you can dip in and out.
Does MTD apply to limited companies?
Not for corporation tax — that phase was scrapped, not merely deferred. Companies remain subject to MTD for VAT if VAT-registered, and company directors can personally be caught by MTD for Income Tax through property or side self-employment income.
This article is general information for UK businesses, not tax, legal, or financial advice, and thresholds change — confirm current rules on GOV.UK or with a qualified accountant before acting. Fee figures are indicative benchmarks from ourmethodology.