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PayToolkit›MTD Readiness Checker
📋 Making Tax Digital

Are you ready for
Making Tax Digital?

Answer 5 quick questions to find out if MTD for Income Tax applies to you, when you need to act, and exactly what to do next.

Question 1 of 5
Which of the following applies to you?
Question 2 of 5
What is your approximate gross annual income from self-employment and/or property?
💡 Use gross income — before deducting any expenses. For property, this is total rent received. For self-employment, it's your turnover.
Question 3 of 5
How do you currently keep your financial records?
Question 4 of 5
Do you operate as part of a business partnership?
💡 A general partnership is where two or more people run a business together and share profits. This is different from a limited company with multiple directors.
Question 5 of 5
Have you received any communication from HMRC about MTD for Income Tax?
📋
Checking your status…
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MTD for Income Tax — rollout timeline

HMRC is phasing in MTD ITSA based on gross qualifying income from self-employment and property combined.

FromWho must complyStatus
April 2026Sole traders & landlords with qualifying income over £50,000Now live
April 2027Sole traders & landlords with qualifying income over £30,000Coming soon
April 2028Sole traders & landlords with qualifying income over £20,000Planned
TBCGeneral partnershipsLater phase

What does MTD compliance actually involve?

Under MTD ITSA you will need to:

1. Keep digital records — all income and expenses must be recorded digitally using HMRC-recognised software, not paper or basic spreadsheets.

2. Submit quarterly updates — send a summary of your income and expenses to HMRC four times a year, within one month of each quarter end.

3. Submit an End of Period Statement (EOPS) — confirm your figures at the end of the tax year and make any adjustments.

4. Submit a Final Declaration — this replaces your annual Self Assessment return, covering all your other income sources.

What software can I use?

You must use HMRC-recognised MTD-compatible software. HMRC maintains a list of approved providers at gov.uk. Popular options include QuickBooks, Xero, FreeAgent, and Sage. Bridging software is also available for those who want to continue using spreadsheets but still submit digitally.

PayToolkit's expense tracker records income and expenses digitally throughout the year — giving you the data foundation MTD requires, ready to export to your chosen MTD software.

Frequently asked questions

What is Making Tax Digital for Income Tax?
Making Tax Digital for Income Tax Self Assessment (MTD ITSA) requires self-employed people and landlords to keep digital records and submit quarterly updates to HMRC using compatible software, instead of a single annual Self Assessment return.
When does MTD for Income Tax start?
From April 2026 for those with qualifying income over £50,000. From April 2027 for income over £30,000. From April 2028 for income over £20,000. Qualifying income means gross self-employment turnover and gross rental income combined.
Does MTD apply to limited companies?
No. MTD for Income Tax applies only to sole traders and landlords who file Self Assessment. Limited companies are subject to separate HMRC reporting rules. Making Tax Digital for Corporation Tax is a separate programme with its own timeline.
Can I get an exemption from MTD?
HMRC may grant exemptions in certain circumstances — for example, if you are digitally excluded, have a disability preventing computer use, or your religious beliefs prevent computer use. You must apply to HMRC for an exemption before your mandation date.
What counts as qualifying income for MTD?
Qualifying income is gross income from self-employment (turnover before expenses) plus gross property income (rent before expenses). PAYE salary, pension income, dividends, and savings interest do not count towards the MTD threshold.
Disclaimer: This checker provides general guidance based on HMRC's published MTD ITSA rollout plans as of 2026. Individual circumstances vary. For advice specific to your situation, consult a qualified accountant or HMRC directly.