Making Tax Digital for Income Tax
Mandation started on 6 April 2026 and arrives in three stages. These are the pages for the dates, the thresholds and what you actually file.
- Your MTD year: the four dates that matterWho Making Tax Digital applies to, the quarterly deadlines, what digital records mean in a van, and what happens if you're late.
- Who has to use MTD for Income Tax?The three income thresholds and when each one starts, what counts as qualifying income, and why landlords are in scope too.
- MTD start dates: the £50,000, £30,000 and £20,000 thresholdsWhen each cohort joins, how the threshold is tested against last year's figure, and the year that is still filed the old way.
- Quarterly updates: what they are and when they are dueFour updates a year, the 7 August to 7 May cycle, the January year-end step, and the 2026-27 soft landing.
- Can you get an exemption from MTD?Who counts as digitally excluded, the grounds HMRC accepts, and how the 2027-28 application works.
- Does MTD replace your tax return?What the quarterly updates replace, what stays the same, and the tax year that still needs a Self Assessment return.
- How Making Tax Digital works, end to endMaking Tax Digital replaces one annual paper trail with four quarterly updates built from digital records. Here is the whole chain, in order.
- MTD penalties and points: what a missed deadline costsPoints for late submissions, a sliding penalty for late payment, and one year where a missed quarterly update carries no points at all.
- Sending quarterly updates without a spreadsheetA linked spreadsheet is more work than it looks. Here is what the rules demand, and what a records-first tool does instead.
- MTD for partnerships: where things standPartnerships are not in scope for MTD for Income Tax yet, with no date published. A partner's share does not count towards the threshold.
- What happens if your income falls below the MTD thresholdA drop in turnover does not automatically remove the MTD requirement. Here is how the threshold is tested and when you are exempt.
- MTD for landlords: rental income and quarterly updatesAll UK properties count as one property business for Making Tax Digital. How landlords test the threshold and send quarterly updates.
- Quarterly update deadlines for 2026 to 2027Four deadlines, what counts as late, and the 2026-27 penalty points exception for quarterly updates.
- Your first quarterly update under Making Tax DigitalLearn what goes into your first MTD quarterly update, how it connects to your tax return, and how to avoid common errors.
- How MTD counts multiple businesses and property incomeFind out how MTD ITSA combines income from several trades and property businesses to test the qualifying income threshold.
- What changes in your first MTD yearUnderstand the first MTD year: quarterly updates, digital records, penalty changes and the final declaration.
- MTD for overseas property: a separate foreign property businessForeign property is one MTD business, separate from UK property. See what to record, how totals are sent, and how cash basis applies.
- Rent a room relief and Making Tax DigitalUnderstand how rent a room relief affects your qualifying income for Making Tax Digital thresholds.
- Late payment penalties under Making Tax DigitalHow MTD late payment penalties work: the percentages, the 30-day grace period in the first year, and how they differ from submission points.
- MTD for joint landlords: reporting your shareJoint landlords: how to report your share of rental income and expenses under Making Tax Digital for Income Tax.
Setting up MTD
The admin side: signing up, checking what HMRC already holds about you, choosing software, and where the tax return is submitted from.
- Signing up for MTD for Income TaxSign up yourself and you can check your details while you can still correct them. What you need, and the steps that follow.
- HMRC has signed you up for MTD: what to do nextHMRC began signing people up from September 2026 using the details it already holds. Here is what to check and what to do.
- Digital records and digital links for MTDA digital record is income or expense recorded and stored in compatible software. The rest of the rules are about not retyping it.
- Choosing MTD software, and what HMRC's software list tells youHMRC does not provide, approve or recommend software. Here is how to read its software list and what to check for yourself.
- Why your tax return goes through software, not by handHMRC recognition is about a product meeting the requirements for a service. It is not an endorsement, and it is the route the return travels.
- How HMRC works out qualifying income - worked examplesTurnover from the previous return, what HMRC counts, and worked examples for sole traders, landlords and people with both.
- What happens when your income goes over the MTD thresholdOver the threshold, MTD for Income Tax starts the following 6 April. The test uses turnover from a return you have already sent.
- Recording cash income for Making Tax DigitalGuide to recording cash income for MTD ITSA. What to keep, how it fits quarterly updates, and handling cash that never hits a bank account.
Mileage, expenses and allowances
What you can put through the books, at what rate, and the claims that cause trouble.
- What you can claim (and what you can't)The wholly-and-exclusively rule, the two ways to claim your van, big kit and the £1m allowance, and the claims that cause trouble.
- Mileage rates: 55p, 25p and 24pThe rate for cars and vans, the 10,000 mile step, what the rate already covers, and why bicycles have no rate for the self-employed.
- Simplified expenses: the flat ratesThe working-from-home bands, the flat rate for living at your premises, and when the flat rate beats the real costs.
- Working from home: what a sole trader can claimThe 25 hours a month rule, the flat rate bands, and claiming your phone and broadband separately.
Self Assessment
Registering, filing and paying, including the two extra bills a year that catch people out.
- Do you need to file a tax return?The £1,000 line for sole traders, the other income that pulls you in, and when HMRC simply asks you to file.
- Registering as self-employed: the deadline and the UTRThe 5 October notification date, the UTR that arrives by post, and what happens if you register late.
- Payments on account: what they are and how to reduce themWhy you pay twice a year, how each instalment is worked out, and how to reduce them without interest.
- The MTD final declaration explainedLearn what the final declaration is, how it differs from quarterly updates, and the 31 January tax return deadline.
VAT and CIS
The two regimes that take money at source, and what you get back.
- The VAT threshold and how it is testedThe £90,000 line, the rolling 12-month test, the forward look, and the date you are registered from.
- MTD for VAT: what it requiresDigital records, digital links and API filing, who is already in scope, and what late filing costs.
- CIS deductions: getting your 20% backThe rates, why materials should never be deducted, the statements to keep, and how the money comes back at year end.
- CIS gross payment status: qualifying and keeping itHow to get 0% deducted, the turnover test, the annual review, and how to get it back.
Running the job
The paperwork that decides whether you get paid on time.
- CP12 gas certificates without the paper chaseThe 12-month clock, the renewal window that keeps your date, who gets copies and when, and issuing them digitally.
- Quotes that get signed, invoices that get paidSame-day quotes, itemised labour and materials, e-signatures before you start, short due dates and chasing on a schedule.
- Chasing a late invoice: when payment counts as late, and what you can claimAgreed terms decide when a business payment is late. If nothing was agreed, the law sets the date, and interest and recovery costs follow.
- Making Tax Digital and the Construction Industry SchemeUnderstand how Construction Industry Scheme deductions fit into Making Tax Digital. A guide for subcontractors on records and quarterly updates.
MTD by trade
The same rules, read through one trade at a time, with the records that trade actually creates.
- MTD for gas engineers: the job already makes the recordsFor a gas engineer most MTD records are created by the job itself: the invoice, the parts, the certificate and the mileage.
- Making Tax Digital for plumbers: thresholds, CIS and quarterly updatesMTD guide for plumbers: income thresholds, CIS subcontractor rules, van expenses and quarterly update deadlines. Check if you are affected.
- MTD for electricians: materials, CIS and the four updatesLabour is income, materials are not, and a CIS deduction does not reduce your turnover. The trade detail behind the four updates.
- Making Tax Digital for builders and small construction firmsGuide for builders on MTD ITSA thresholds, quarterly updates, CIS deductions and digital records. Check deadlines and requirements for 2026-27.
- Making Tax Digital for painters and decoratorsMTD guide for painters and decorators. Learn about income thresholds, quarterly updates for materials and labour, and how to meet HMRC deadlines.
- Making Tax Digital for plasterers: thresholds, deadlines and recordsWhat MTD means for sole trader plasterers. Check your income threshold, quarterly deadlines and how to keep digital records for tax.
- MTD for roofers: thresholds, quarterly updates and deadlinesThe MTD thresholds, what each quarterly update contains, the deadline dates, and where materials, scaffolding and CIS fit in.
- Making Tax Digital for scaffoldersScaffolders guide to MTD ITSA: thresholds, quarterly updates, CIS handling and deadlines. Check if you need to sign up for 2026-27.
- Making Tax Digital for tilers: thresholds, updates and CISTiling sole traders: MTD thresholds, quarterly update deadlines, CIS handling and digital record keeping explained.
- MTD for gardeners and landscapersMTD for gardeners and landscapers: who is in scope, how the four updates work, and the dates each one is due.
- Making Tax Digital for carpenters and joinersWhat MTD means for carpenters and joiners. Thresholds, deadlines, CIS and digital records explained for sole traders and small firms.
- MTD for hairdressers and barbers: thresholds, chair rent and cash takingsThresholds, update deadlines, chair rent and cash takings, written for one-person salons and small shops.
- Making Tax Digital for mobile beauty therapistsA plain English guide to Making Tax Digital for mobile beauty therapists, covering thresholds, records, quarterly updates and deadlines.
- MTD for taxi and private hire driversWhat the MTD for Income Tax thresholds mean for taxi and private hire drivers, what goes in each quarterly update and when the deadlines fall.
- Making Tax Digital for couriers and delivery driversCourier guide: MTD thresholds, vehicle costs, quarterly update deadlines and digital record keeping for delivery drivers.
- Making Tax Digital for dog walkers and pet sittersMTD rules for dog walkers and pet sitters. Check your turnover threshold, see quarterly deadlines and learn how to keep digital records.
- Making Tax Digital for tutors: thresholds, updates and deadlinesWhat Making Tax Digital means for tutors: income thresholds, quarterly update deadlines, and how to manage records for home-based teaching.
- Making Tax Digital for cleaners and cleaning businessesCleaners: check if you need MTD. Learn about the 50k threshold, quarterly updates, and keeping digital records for expenses like mileage and supplies.
- Making Tax Digital for locksmithsLocksmiths: check if you need MTD. Key thresholds, quarterly deadlines, and how to manage digital records for your trade.
- Making Tax Digital for driving instructorsDriving instructors: MTD thresholds, quarterly updates for lesson income and car costs, and key deadlines for 2026-27.
- Making Tax Digital for mobile mechanicsMobile mechanics: MTD thresholds, quarterly updates for parts and callouts, and deadlines. Check your obligations for 2026-27.
- Making Tax Digital for photographers: thresholds, updates and deadlinesUnderstand MTD ITSA for photographers. Learn about income thresholds, quarterly update deadlines and digital record keeping for your photo business.
- Making Tax Digital for DJs and entertainersMTD rules for DJs and entertainers. Thresholds, quarterly updates, and deadlines explained for solo traders and small firms.
Reading about it is the easy part.
TradeKit does the quoting, invoicing, expenses and mileage on your phone, and keeps the digital records HMRC wants. Free trial, no card needed.