Taxpayers who had combined gross income from sole trades and property businesses of more than £50,000 for 2024/25 must use MTD income tax from April 2026. More taxpayers will be required to use MTD from April 2027 and April 2028. Taxpayers who are not required to use MTD income tax can volunteer to do so. As explained in a recent article, taxpayers are exempt from MTD income tax in certain circumstances.
Prefer to listen?
This audio file was produced by AI and has been adapted from the original article for audio purposes.
Taxpayers who are required to use MTD income tax, or wish to do so, must sign up with HMRC. Agents can sign up clients on their behalf. Under MTD income tax, taxpayers must maintain digital records and submit quarterly updates and an end of year return to HMRC using compatible software.
MTDtalk
ICAEW Tax Faculty staff are delivering a series of webinars on MTD income tax. Topics covered in the first webinar, which was broadcast on 6 March 2026, included how agents can sign up clients for MTD income tax. The next webinar in the series, covering quarterly updates, will take place on 9 July 2026.
To watch recordings of previous webinars and to register for future webinars, visit MTDtalk 2026 webinar series | ICAEW.
HMRC estimates that approximately 864,000 taxpayers are required to use MTD income tax from April 2026. ICAEW understands that approximately 280,000 taxpayers have signed up so far, with 30,000 taxpayers having done so voluntarily.
ICAEW is encouraging taxpayers who have yet to sign up to MTD income tax to do so in good time in order to submit their first quarterly update by 7 August 2026. By signing up in advance of the first filing deadline, taxpayers and agents will give themselves more time to deal with any issues that may arise.
Taxpayers who are required to use MTD income tax from April 2026 should have received a letter from HMRC informing them of this, or will do soon where they filed their 2024/25 self assessment return after the 31 January deadline. However, it remains the taxpayer’s responsibility to check if they are required to use MTD income tax. They can do this by following HMRC’s guidance.
HMRC has published videos on signing up for MTD income tax to help taxpayers and agents understand the process.
Further information
- Up to 3 million individuals may need to comply with MTD | ICAEW
- How to get help with MTD quarterly updates | ICAEW
- HMRC clarifies position on Making Tax Digital and cessations | ICAEW
- TAXguide 01/25: MTD income tax | ICAEW
- TAXguide 04/25: Making Tax Digital for income tax – questions and answers | ICAEW
The Tax Faculty
ICAEW's Tax Faculty is recognised internationally as a leading authority and source of expertise on taxation. The faculty is the voice of tax for ICAEW, responsible for all submissions to the tax authorities. Join the Faculty for expert guidance and support enabling you to provide the best advice on tax to your clients or business.
Further resources
More support
Making Tax Digital
Find the latest support and practical guidance on MTD and its implementation, including plans to expand the regime to income tax self assessment and corporation tax.
SOFTWARE
MTD for income tax software providers
Explore the software available for Making Tax Digital for income tax, covering: bridging, record keeping and full service options. Use these key resources to help you decide the best MTD income tax software for your clients needs.
Browse providersTechnical support
Webinars on MTD
Expert advice from the Tax Faculty's technical managers on the latest developments in the MTD Regime
Watch now