Making Tax Digital (MTD)
Compare MTD-ready accountants. MTD for VAT is live; MTD for Income Tax starts at £50k from April 2026, then £30k in 2027 and £20k in 2028.
Making Tax Digital requires UK businesses to keep digital records and submit returns through compatible software. MTD for VAT is live for all VAT-registered businesses. MTD for Income Tax is mandatory for sole traders and landlords with qualifying income over £50,000 from 6 April 2026, over £30,000 from April 2027, and over £20,000 from April 2028. HMRC confirmed in its July 2025 Transformation Roadmap that it does not intend to introduce MTD for Corporation Tax. Your accountant should use MTD-recognised software and understand quarterly reporting obligations.
When does Making Tax Digital apply to me?
MTD for VAT is already live for VAT-registered businesses. MTD for Income Tax starts at £50,000 qualifying income from 6 April 2026, then £30,000 in 2027 and £20,000 in 2028. Confirm current thresholds on GOV.UK before you act — our dates are from the 17 July 2026 review.
Sole traders and landlords are the Income Tax cohort. Limited companies keep filing corporation tax as now. An accountant who cannot name their MTD software is not ready.
Typical cost
£10/mo – £20/mo
Rates checked 17 July 2026 · Benchmarks are editorial estimates — how we calculate them.
Making Tax Digital — the key facts
MTD for VAT is live for all VAT-registered businesses. MTD for Income Tax is mandatory for sole traders and landlords with qualifying income over £50,000 from 6 April 2026, over £30,000 from April 2027, and over £20,000 from April 2028. HMRC confirmed in its July 2025 Transformation Roadmap that it does not intend to introduce MTD for Corporation Tax.
| Qualifying income | Mandatory from | Expected to affect |
|---|---|---|
| Over £50,000 | 6 April 2026 | ~780,000 sole traders and landlords |
| Over £30,000 | 6 April 2027 | ~970,000 more people |
| Over £20,000 | 6 April 2028 | ~900,000 more people |
- MTD for VAT is live for all VAT-registered businesses.
- HMRC confirmed in its July 2025 Transformation Roadmap that it does not intend to introduce MTD for Corporation Tax.
Sources checked 17 July 2026: MTD for VAT (GOV.UK), MTD for Income Tax (GOV.UK), HMRC Transformation Roadmap.
Frequently asked questions
Do I need an MTD-ready accountant?▼
If you are VAT-registered you should already be filing through MTD-compatible software. Sole traders and landlords with qualifying income over £50,000 join MTD for Income Tax from 6 April 2026, so your accountant must use HMRC-recognised software and handle quarterly updates as well as the year-end final declaration.
When does MTD for Income Tax start?▼
MTD for Income Tax is mandatory from 6 April 2026 for sole traders and landlords with qualifying income over £50,000. The threshold drops to over £30,000 from April 2027 and over £20,000 from April 2028.
Is MTD for Corporation Tax happening?▼
No. HMRC confirmed in its July 2025 Transformation Roadmap that it does not intend to introduce MTD for Corporation Tax. Companies continue to file their CT600 company tax returns as they do today.
What software do I need for MTD?▼
You need HMRC-recognised MTD-compatible software — packages such as Xero, QuickBooks, FreeAgent or Sage — or bridging software that links spreadsheets to HMRC's systems. Many MTD-ready accountants include the software subscription in their monthly fee.
Information only — not tax, accountancy, or financial advice. Rules and thresholds change; confirm current positions with GOV.UK or a qualified accountant. Last updated 17 July 2026.