Making Tax Digital for Income Tax started on 6 April 2026 for sole traders and landlords with qualifying income over £50,000. They must now keep digital records and send quarterly updates to HMRC through compatible software. MTD for VAT, which has applied to every VAT-registered business since April 2022, carries on as before.
The two share a name and a way of working, but they are separate duties with separate submissions.
What MTD for Income Tax means
If you are in it, you must:
- keep your business or property income and expenses as digital records
- send a quarterly update to HMRC through software that works with MTD
- submit a final declaration after the end of the tax year
It starts with the highest earners and widens over the next two years.
From 6 April 2026 it covers sole traders and landlords with qualifying income over £50,000. That falls to over £30,000 from April 2027 and over £20,000 from April 2028.
HMRC explains who is in on its page about checking if you are eligible for MTD for Income Tax.
Who this affects
Partnerships and companies are not in MTD for Income Tax. Companies pay corporation tax, not income tax, so this regime does not reach them.
| Business | MTD for VAT | MTD for Income Tax |
|---|---|---|
| VAT-registered sole trader over £50,000 | Yes | Yes |
| Landlord over £50,000, not VAT registered | No | Yes |
| VAT-registered limited company | Yes | No |
| VAT-registered partnership | Yes | No |
| Sole trader under £50,000 | If VAT registered | Not from April 2026 |
How it sits alongside MTD for VAT
MTD for VAT has applied to all VAT-registered businesses since April 2022, whatever their turnover. HMRC signs businesses up automatically. You keep digital VAT records and file each VAT return through compatible software. The return is usually due 1 month and 7 days after the end of the period. The rules are on gov.uk's Making Tax Digital for VAT page.
| MTD for VAT | MTD for Income Tax | |
|---|---|---|
| Started | April 2022 | 6 April 2026 |
| Who | Every VAT-registered business | Sole traders and landlords over the threshold |
| What you send | VAT returns | Quarterly updates and a final declaration |
| Companies and partnerships | Yes, if VAT registered | No |
What it means for you
Say you are a VAT-registered sole trader with qualifying income of £62,000 and quarterly VAT periods. You are over £50,000, so you have both regimes from 6 April 2026. In a full year you send:
- 4 VAT returns
- 4 income tax quarterly updates
- 1 final declaration
That is 9 submissions a year (4 + 4 + 1), even if they all come from one set of records.
Now say your qualifying income is £42,000. You are under £50,000, so you are not in yet. But £42,000 is over £30,000, so you are in from April 2027.
What to do now
If you already use MTD software for VAT
Check whether your package also handles MTD for Income Tax. Many do both, so one set of digital records can feed your VAT returns and your income tax updates. If yours does not, you need a second product or a switch.
If you are a sole trader near the thresholds
Look at your qualifying income now. Moving to digital records a year early is easier than doing it in a rush. Check your next VAT deadline with the VAT deadline calculator.
If you have both
Keep the deadlines apart. VAT returns follow your VAT periods. Income tax updates follow their own quarterly timetable. Put both in your diary and do not assume one submission covers the other.
What has not changed
- MTD for VAT still applies to every VAT-registered business.
- VAT returns are still usually due 1 month and 7 days after the period ends.
- Companies and partnerships that are VAT registered still use MTD for VAT only.
For the VAT side in full, including records, software and penalties for late returns, read our Making Tax Digital for VAT guide.
Questions
When did MTD for Income Tax start?
6 April 2026, for sole traders and landlords with qualifying income over £50,000.
Does MTD for Income Tax change MTD for VAT?
No. MTD for VAT has applied to every VAT-registered business since April 2022 and is unchanged.
Do limited companies have to use MTD for Income Tax?
No. Companies pay corporation tax, so they are not in MTD for Income Tax. They still use MTD for VAT if VAT registered.
Can one software package do both?
Yes, many can. Check with your supplier that it supports MTD for Income Tax as well as MTD for VAT.
