Making Tax Digital (MTD) for Income Tax is a new system introduced by HM Revenue & Customs (HMRC) to help landlords and self-employed individuals manage their taxes more easily. It requires keeping digital records and sending updates to HMRC using compatible software.
It represents a big change to the current process for tax filing for landlords and sole traders. This site has been established as the go-to community for MTD for landlords with tips and news.
Who is included in the new system?
MTD for Income Tax will be introduced in stages:
- From 6 April 2026: If your total income from self-employment and property is over ยฃ50,000.
- From 6 April 2027: If your total income from these sources is over ยฃ30,000.
- From 6 April 2028: If your total income from these sources is over ยฃ20,000.
This income is calculated before deducting any expenses or taxes.
MTD for Income Tax Calculator
Enter your annual rental income to see when you need to be ready for Making Tax Digital for Income Tax:
Your MTD for Income Tax Status:
What will you need to do?
If you are required to use MTD for Income Tax, you will need to:
- Keep digital records of your income and expenses.
- Send quarterly updates to HMRC using MTD-compatible software.
- Submit a final declaration by 31 January following the end of the tax year.
Using compatible software can help reduce errors and make managing your taxes easier.
How to prepare
To get ready for MTD for Income Tax:
- Check if you need to use MTD based on your income.
- Choose compatible software that meets your needs.
- Sign up for MTD when required.
- Keep digital records and send updates as needed.
You can also choose to sign up early to get used to the system before it becomes mandatory.
Need help?
HMRC offers guidance, videos, and webinars to help you understand and use MTD for Income Tax.
For more information, visit the official Making Tax Digital for Income Tax collection.