Making Tax Digital for Income Tax

Making Tax Digital for Income Tax (MTD) represents a fundamental shake-up in how taxpayers and agents interact with HMRC, and each other. It aims to promote better and more timely record-keeping to reduce errors and mistakes as part of the Government’s aim to reduce the tax gap.

MTD operates on a more modern HMRC IT platform, improving security whilst enabling improved digital services such as pre-population of data and nudges/prompts to taxpayers fed by better connections with data held by HMRC.

This page provides access to MTD-related resources prepared by the ATT to help taxpayers and agents get ready for and operate MTD. 

The information presented on this page represents the ATT’s understanding based on the information available at the date of publication shown. You may wish to check against available legislation and any official guidance on GOV.UK that that position has not changed.

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Last updated:  4 September 2026

Find out about the basics of Making Tax Digital with our introductory videos - who it affects, when it applies from, and what's involved. 

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MTD peer-discussion groups

Members are invited to a series of monthly online drop in sessions where you can speak to your peers about tips and practical advice on getting ready for MTD. 

These sessions will be member-led, but ATT technical team representatives will be in attendance. Find out more and sign up via our MTD peer-discussion groups page.

Webinars & events

On 7 May we held the fourth in a free series of virtual Q&A sessions. Members of the ATT Technical Team provided a brief update on recent MTD developments, before taking questions from the audience on all things MTD. A recording of the May Q&A session is now available.

The recording from the previous Q&A session on 24 February is also available, along with a recording of the inaugural 2 October 2025 session and a recording of a follow up Q&A session in November 2025. 

Articles

We regularly write articles covering a range of MTD topics for industry publications and our own website. Head to our Technical Articles page to find recent content, as well as our archives. 

MTD, Engagement Letters & Professional Conduct in Relation to Taxation (PCRT)

Guidance on the application of PCRT to the requirements of MTD has been published to assist members in understanding their obligations under PCRT when acting for clients in MTD. 

The ATT has also published specific MTD for Income Tax Engagement Letter Schedules, developed in collaboration with other Professional Bodies. 

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HMRC to start signing up taxpayers who have not registered themselves for MTD 

From September 2026, HMRC will start a process of signing up those taxpayers who they believe should have registered for MTD. HMRC have advised that their communication will be sent directly to the taxpayer and that agents will not receive a copy. Our articles HMRC to start signing up taxpayers who have not registered themselves for MTD and HMRC-led sign up: advice for agents explain more.

Exemption applications 

Exemption applications for the 2026/27 tax year should have been made in advance of the 7 August deadline for filing the first quarterly update. However, applications can still be submitted. HMRC are also now accepting applications for exemption from MTD for the 2027/28 tax year. Our technical article Making Tax Digital: exemption cases, when and how to apply has the key information. 

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Under the requirements of MTD, individuals who are subject to income tax on the profits of their trade, profession, vocation or property business are required to keep their accounting records electronically (either using suitable software or on a spreadsheet) and file quarterly returns to HMRC with details of their income and expenditure together with any other information that HMRC specifies. An MTD tax return will then be submitted after the tax year to finalise the individual’s tax position.

Although the frequency of reporting changes under MTD, the timing of tax payments will not and the current system of payments on account and balancing payment by 31 January after the tax year is expected to remain in place for the foreseeable future.

Our Making Tax Digital For Income Tax Frequently Asked Questions contains more detailed information.

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The mandation of MTD is phased, with the exact date dependent on the taxpayer's income:

• From April 2026, self-employed individuals and landlords with incomes from those sources of more than £50,000 will be mandated into MTD.
• Those with income from self-employment and/or property of more than £30,000 will be mandated from April 2027.
• Individuals with self-employment and/or property income over £20,000 will have to join MTD from April 2028.

Further details of how the income thresholds will operate can be found in our article 'How does the income exemption work for MTD for ITSA' and in the 'Joining MTD' and 'Leaving MTD' sections of our Frequently Asked Questions. 

Although the Government has said they remain committed to extending MTD to general partnerships, no 'start date' has been confirmed. All other partnerships (e.g. those that have corporate partners and Limited Liability Partnerships) are also expected to be required to join MTD at a future date (to be confirmed).  

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There are limited automatic exemptions from MTD and other exemptions which need to be claimed.  See the 'What exemptions and deferrals are available' section of our Making Tax Digital For Income Tax Frequently Asked Questions, or MTD exemptions guidance on GOV.UK for further details. 

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Enabling primary legislation for MTD for Income Tax was included in Sections 60 to 61 and Schedule 14 of Finance (No.2) Act 2017.  

On 24 March 2026, updated Regulations setting our more details on MTD were laid. These replace the previous Regulations which were laid on 23 September 2021 and amended by the Income Tax (Digital Requirements) (Amendment) Regulations 2024.  Tertiary legislation comprising a Quarterly Update Direction and a Digital Record Keeping Direction were published in early 2025 and updated in March 2026.

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