The short answer
Making Tax Digital means keeping business records in software and using that software to update HMRC more regularly. For Income Tax, the rules are being introduced in stages for sole traders and landlords according to gross qualifying income.
MTD in one minute
If you are a sole trader or landlord above the relevant income threshold, you use compatible software to keep digital business records. Every three months, the software totals those records and sends a summary to HMRC. After year end, you complete the remaining tax-return information and submit it through the software.
The change is mainly about how records move from your day-to-day work to HMRC: digitally, more regularly and with fewer manual hand-offs.
Who joins MTD and when?
The rollout is based on combined gross income from self-employment and property.
- April 2026: over £50,000
- April 2027: over £30,000
- April 2028: over £20,000
What MTD does not mean
A few common assumptions make MTD sound more complicated than it is.
- A quarterly update is not a full tax return
- You do not normally make tax adjustments before each quarterly update
- Quarterly updates do not create four new Income Tax payment dates
- You still complete a tax return after the tax year
- You can ask an accountant or agent to help
Where SimpleTaxFlow fits
SimpleTaxFlow connects the bookkeeping work to the reporting work. Keep records online, attach evidence, import statements, manage invoices, review reports and move into a guided HMRC submission when the period is ready.
It is built for sole traders and UK landlords who want focused MTD software rather than a large general-purpose accounting package.
- 30-day free trial, then £60 billed annually (£5 per month equivalent)
- Complete web portal with optional WhatsApp capture
- HMRC-recognised for supported MTD for Income Tax workflows
- Read-only accountant access and downloadable records
Your next three steps
You do not need to redesign your whole business in one day.
- Use HMRC's checker to confirm whether and when you must join
- Choose software that covers your income sources and preferred workflow
- Start keeping current digital records before your first deadline
Frequently asked questions
What does MTD stand for?
MTD stands for Making Tax Digital, HMRC's programme for keeping tax records and sending information digitally through compatible software.
Who is MTD for Income Tax for?
It applies to qualifying sole traders and landlords registered for Self Assessment whose gross self-employment and property income is above the threshold for the tax year.
How often do I send information to HMRC?
Quarterly updates are due four times a year. You also submit a tax return after the end of the tax year.
Can SimpleTaxFlow tell me if I am exempt?
No software should decide a fact-specific exemption without the right evidence. Use HMRC's eligibility service or speak to a tax professional, then use SimpleTaxFlow for the supported bookkeeping and filing workflow.
Check the official rules
MTD rules can change and individual circumstances matter. Use HMRC’s current guidance to confirm eligibility, exemptions, supported income sources and deadlines.
Turn the guidance into a manageable routine.
Keep records, evidence, reports and supported HMRC submissions together. Free for 30 days, then £5 per month equivalent, billed annually at £60.
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