How MTD for Income Tax works
- You keep your records digitally, using HMRC-recognised software.
- Every quarter, you send HMRC a summary of your income and expenses for the tax year so far. HMRC says these are “summaries, not tax returns”, and your software shows your predicted tax bill.
- After the tax year ends, you submit your tax return through the same software by 31 January. This replaces your normal Self Assessment return.
- Whether you need it depends on your qualifying income: self-employment and property income added together, before expenses.
| If your qualifying income in… | was over… | you start MTD from… |
|---|---|---|
| 2024 to 2025 | £50,000 | 6 April 2026 |
| 2025 to 2026 | £30,000 | 6 April 2027 |
| 2026 to 2027 | £20,000 | 6 April 2028 |