MTD eligibility
Check qualifying income, start year and potential exemption.
Making Tax Digital for Income Tax changes the compliance cycle for self-employed individuals and landlords within scope. Digital records and compatible software now need to support quarterly updates as well as the year-end tax position.
MTD does not turn four quarterly submissions into four tax returns. The accounting system needs to produce reliable digital records throughout the year while the final tax calculation still depends on year-end information and adjustments.
Self-employed income, property income and current software are useful.
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The accountant helps determine whether MTD applies, configures digital records and maintains a reporting process that still supports the final annual tax position.
Quarterly submissions are only useful if they come from reliable digital records. Software should fit the business rather than forcing a small landlord or sole trader into unnecessary complexity.
The work can range from an eligibility review to an ongoing bookkeeping and quarterly-submission process.
Check qualifying income, start year and potential exemption.
Compatible bookkeeping and digital records.
Bring existing records into the digital system properly.
Prepare required updates from the business records.
Accounting and tax adjustments remain part of the annual process.
Other income and tax matters still need to be brought into the final position.
Qualifying income and the MTD start date are established.
The digital system is matched to the business.
Transactions are recorded digitally throughout the year.
Quarterly updates and the annual tax return are completed.
The start year is determined using qualifying income from the relevant reference tax year.
MTD for Income Tax applies to qualifying individuals rather than ordinary limited-company Corporation Tax. A director's company records and the director's separate self-employment or property income should therefore be distinguished.
Current thresholds and start dates.
Official MTD guidance ↗Current policy for the April 2028 extension.
April 2028 threshold ↗Relevant sole traders and landlords with qualifying income over £50,000 for the applicable reference year, subject to the detailed rules and exemptions.
No. Qualifying income uses relevant gross self-employment and property income before expenses.
No. The final annual tax position still depends on year-end adjustments and the taxpayer's wider income and circumstances.
No. MTD for Income Tax applies to relevant individuals with self-employment or property income, not ordinary company Corporation Tax.
Potentially where they form part of an MTD-compatible digital-record and submission process that complies with the digital-record rules.
Yes. Relevant qualifying self-employment and property income are considered under the statutory qualifying-income rules.