All you need to know about MTD as a taxpayer
Making Tax Digital for Income Tax
Sign up to be a tester with the first end to end app recognised by HMRC for MTD for Income Tax.
Making Tax Digital will affect you if you are self employed or a landlord renting out property.
What is Making Tax Digital for Income Tax Self Assessment?
You may have heard of Making Tax Digital (generally shortened to MTD). It's a core HMRC project to modernise the systems that manage taxes in the UK.
It's not just HMRC that will be affected. Making Tax Digital - or MTD - is changing how people and businesess report and pay our taxes.
It is being rolled out by HMRC one tax at a time. VAT was the first to go live.
Making Tax Digital for Income Tax is the next phase of MTD. It hasn't been an easy journey for HMRC
The first group required to follow MTD for Income Tax will be from 2026.
We and our users have been ready - untied has been live and helping people get used to this new way of managing our taxes as part of the HMRC pilot since 2020.
When it comes, it will be a big change to income tax reporting
MTD places mandatory digital record-keeping requirements on businesses and introduces quarterly reporting requirements.
Instead of one tax return submitted many months after the end of the tax year, MTD involves quarterly reporting during the year, with any final numbers confirmed after the year-end.
How do I prepare for Making Tax Digital?
MTD for income tax starts in 2026 and is being rolled out in phases
If you're self-employed, run a small business, rent out property including as a buy-to-let investor, MTD could affect you. It will start with total business and property income of more than £50,000 from 2026. Those with combined business and property income of more than £30,000 are mandated from 2027, and this falls to £20,000 from 2028.
Other income such as PAYE (employment) and investment income doesn't go towards these thresholds - so make sure you are only looking at self employment and property income. However you will need to use software to report your other income sources and more once you're in MTD as part of the end of year tax return process. This will include employment - PAYE, pension (state and private), investment income such as interest and dividends, capital gains, charitable donations, student loans, pension contributions and high income child benefit charges. So you'll want software that supports all your sources - and untied covers all those listed.
Even if you are not mandated, you can voluntarily join the MTD testing phase now if you have property or self employment income - just contact us.
One thing that HMRC have got right is the benefit of streamlined digital records and integrated filing. You don't need to wait for MTD for this though - untied gives it to you today (but at your pace - no quarterly filings!).
Will I be able to file my taxes directly at HMRC?
No - you'll need to be using software, both for quarterly updates and for end of year filings.
Can I use untied if I already have an accountant?
Yes, absolutely! Accountants will need to use MTD for income tax recognised software with their clients too. Our adviser portal has been co-designed with accountants specifically with MTD in mind. We continue to work closely with accountants on our MTD for income tax early adopter programme.