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.

Page contents

Last updated:  8 April 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. 

Back to top of page

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 are holding the fourth in a free series of virtual Q&A sessions. Members of the ATT Technical Team will provide a brief update on recent MTD developments, before taking questions from the audience on all things MTD. For more information and to sign up see our events page.

The recording from the latest Q&A session on 24 February is now 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. 

Podcasts

As part of Tax Adviser magazine's podcast series, Emma sat down with respected tax consultant and tax lecturer Rebecca Benneyworth to discuss her experiences in the MTD testing phase. 

• Episode 1 covers Rebecca's initial experiences of testing as one of the first tax advisers to take part, and how to prepare for MTD.
• Episode 2 provides an update on what Rebecca has learned from her involvement in MTD testing, and gives a reminder not to delay getting ready for MTD. 

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. 

Back to top of page

Exemption applications 

HMRC are now accepting applications for exemption from MTD for a broader range of circumstances. Our technical article Making Tax Digital: exemption cases, when and how to apply has the key information. 

Budget 2025

Further changes to MTD emerging at the Budget included a ‘soft landing’ for late filing penalties applying to quarterly updates in 2026/26, along with some small exemptions and deferrals. Our article for AccountingWEB summarises the Budget’s MTD-related announcements. 

HMRC communications to taxpayers 

HMRC wrote to taxpayers during February and March 2026 who will need to sign up to MTD that year. HMRC have shared the latest letters to taxpayers in scope of MTD from April 2026 with us. These letters follow several rounds of communications to taxpayers during 2025 to raise awareness of the introduction of MTD, which we covered in our news item Making Tax Digital: HMRC letters to taxpayers. 

Back to top of page

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.

Back to top of page

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).  

Back to top of page

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. 

Back to top of page

Prior to its mandation in April 2026, HMRC ran a testing phase for MTD.  Agents could sign up their clients for the testing phase directly via GOV.UK.  They should however first check that their client was eligible, that they had suitable software in place, and that their software provider could support them through the testing phase.

See our FAQs and Technical FAQs for further details regarding software and testing. 

Back to top of page

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.

Back to top of page