Tax & compliance
When does Making Tax Digital start?
By Kaiser Khan · Updated · 2 sources checked
The Income Tax phasing timeline
The three Income Tax phases start on 6 April 2026, 2027 and 2028. The thresholds are more than £50,000, £30,000 and £20,000 respectively, tested against the tax year specified by HMRC for each phase.
HMRC uses qualifying income from an earlier Self Assessment tax year to decide the start date: 2024/25 for April 2026, 2025/26 for April 2027 and 2026/27 for April 2028.
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
HMRC says it does not intend to introduce Making Tax Digital for Corporation Tax. That is its current policy, not a permanent legal guarantee.
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
Check the income year HMRC uses for your phase, then add gross self-employment and property income from that return. PAYE salary does not count.
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 first phase began on 6 April 2026. HMRC currently says later phases begin on 6 April 2027 for qualifying income over £30,000 in 2025/26 and 6 April 2028 for over £20,000 in 2026/27.
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?
HMRC currently says it does not intend to introduce MTD for Corporation Tax. VAT-registered companies still use MTD for VAT, and a director can personally be in MTD for Income Tax through property or self-employment income.
Sources
- HMRC: when to use Making Tax Digital for Income Tax · checked 2026-09-23
- HMRC Transformation Roadmap: Corporation Tax policy · checked 2026-09-23
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.