Making Tax Digital changes how you keep records and file with HMRC. This guide explains where it already applies, the income thresholds for MTD for Income Tax, and how to get ready.
Published July 2026 · Updated July 2026
MTD is HMRC's move to digital record keeping and filing. Instead of totting up totals on paper and typing them into a form, you keep digital records and your software sends the figures to HMRC.
MTD for VAT is fully in force: every VAT-registered business must keep digital VAT records and file returns through compatible software.
Sole traders and landlords join next, by income level: from April 2026 if combined gross self-employment and property income is over £50,000; from April 2027 over £30,000; and from April 2028 over £20,000. You will keep digital records and send quarterly updates.
Start keeping records digitally now, choose HMRC-recognised software, and get comfortable with quarterly updates. Starting early avoids a rushed switch the month your obligation begins.
No. It changes how you record and file, not the tax rules or the amount you owe.
Combined gross income from self-employment and property, before expenses. If you have both, they are added together.
Any HMRC-recognised, MTD-compatible software. Berified is being built to keep MTD-ready records and file directly.
This guide is general information for UK small business owners, not accounting, tax or legal advice. Rules, rates and thresholds reflect 2026/27 and change over time; always check the linked official source or a qualified adviser for your situation.