Making Tax Digital (MTD)
What it is
HMRC's programme requiring businesses to keep digital tax records and submit returns through approved software. MTD for VAT is already mandatory for all VAT-registered businesses. MTD for Income Tax Self Assessment (MTD ITSA) is being phased in from April 2026.
Why it matters
From April 2026, self-employed individuals and landlords with income over £50,000 must use MTD-compatible software and submit quarterly updates to HMRC. Bridging spreadsheets will no longer be enough — digital records become a legal requirement.
Common mistake
Thinking MTD only affects VAT. The Income Tax expansion from 2026 is significant — and HMRC intends to extend it further over time. Starting digital bookkeeping now is far easier than rushing to comply later.
Official source
GOV.UK — Making Tax Digital ↗Related
Disclaimer
General educational guidance only — not legal, tax, accounting, immigration, investment or financial advice. We don't guarantee the information is complete, current or suitable for your situation. Always check official sources (GOV.UK, Companies House, HMRC, the relevant professional body) and speak to a qualified professional before acting. Last reviewed: June 2026.