Making Tax Digital (MTD)
Making Tax Digital for Income Tax replaces the single annual return with four quarterly updates and a final declaration, for people over an income threshold. It starts at £50,000 of qualifying income from 6 April 2026.
Correct for the 2026/27 tax year. Last checked 12/09/2026.
It changes how you report, not what you owe. The tax rules are identical either side of it.
What it means for your money
The threshold is qualifying income, which is self-employed and property income added together before expenses. It falls to £30,000, then £20,000, so a driver outside it today can be inside it in two years without changing anything.
Records have to be kept digitally and submitted through compatible software. A shoebox of receipts and a spreadsheet typed up in January stops being enough.
Where to read more
Making Tax Digital for Income Tax.
Sources
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