Making Tax Digital Checker: Do You Need MTD for Income Tax?
Making Tax Digital (MTD) for Income Tax is the biggest shake-up to UK self-employment tax in decades. From 6 April 2026, sole traders and landlords with gross income over £50,000 must keep digital records and submit quarterly updates to HMRC. The threshold drops to £30,000 from April 2027 and £20,000 from April 2028 — bringing hundreds of thousands more people into scope.
This free tool tells you exactly where you stand. Answer three quick questions about your situation and income, and you'll get a personalised roadmap: your MTD start date, your quarterly deadlines, the software you'll need, a step-by-step checklist, and direct links to the right GOV.UK pages.
Built for sole traders, landlords, and anyone earning from self-employment or rental property. No sign-up. No email required. Updated for the 2026/27 tax year.
What is Making Tax Digital For Income Tax?
Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) is HMRC's way of modernising the tax system for businesses. Instead of filing one annual Self Assessment return, sole traders and landlords above the income threshold must now keep digital records and send quarterly updates to HMRC throughout the year using approved software.
You can use our free Sole Trader Profit Calculator to work out your net profit after expenses.
Who Does MTD Apply To?
MTD for Income Tax applies to you if you earn gross income from self-employment, rental property, or a combination of both above these thresholds:
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From 6 April 2026 — gross income over £50,000
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From 6 April 2027 — gross income over £30,000
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From 6 April 2028 — gross income over £20,000
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Gross income means your total income before expenses. If you have both a self-employed income and rental income, HMRC adds them together to calculate whether you meet the threshold.
What Are the MTD Quarterly Deadlines?
Under MTD for Income Tax you must submit four quarterly updates to HMRC each tax year. The submission deadlines are:
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Quarter 1 (6 April to 5 July) — due 5 August
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Quarter 2 (6 July to 5 October) — due 5 November
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Quarter 3 (6 October to 5 January) — due 5 February
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Quarter 4 (6 January to 5 April) — due 5 May
After your four quarterly updates you must also submit a final end-of-period statement and your annual tax return as normal.
What Software Do You Need for MTD?
You must use HMRC-recognised MTD-compatible software to keep your digital records and submit your quarterly updates. You cannot use spreadsheets alone. Popular options that are MTD-compatible include QuickBooks, FreeAgent, Xero, and Sage. HMRC maintains a full list of approved software on GOV.UK.
What Happens If You Miss the MTD Deadline?
HMRC operates a points-based penalty system for late submissions under MTD. Each missed quarterly deadline earns one penalty point. Once you reach the threshold for your submission frequency, a £200 financial penalty is issued. Points expire after 24 months of full compliance.
Do Partnerships Need to Use MTD?
No. MTD for Income Tax currently applies to individuals only — sole traders and landlords. Partnerships are not in scope for the current rollout, though HMRC has indicated they may be brought in at a later date.
Is MTD the Same as Making Tax Digital for VAT?
No. MTD for VAT is a separate scheme that has been in place since 2019 for VAT-registered businesses. MTD for Income Tax is a new and separate requirement for sole traders and landlords under Self Assessment. Being compliant with MTD for VAT does not mean you are automatically compliant with MTD for Income Tax.
If you're also VAT registered, use our UK VAT Calculator to calculate your VAT quickly.