Current position: 1 September 2026. Making Tax Digital for Income Tax and Making Tax Digital for VAT are separate regimes. Check the tax, start date and scope before changing records or software.
What Making Tax Digital means
Making Tax Digital is the name used for HMRC rules that require specified records to be kept digitally and information to be sent using compatible software. It is not one universal deadline and it does not replace every tax rule.
MTD for Income Tax
For 2026/27, the mandatory first cohort is sole traders and landlords whose 2024/25 qualifying income was more than £50,000. They should have started on 6 April 2026.
MTD for VAT
All VAT-registered businesses should now keep the required VAT records digitally and file VAT Returns using compatible software, unless HMRC has accepted an exemption.
Do not carry a rule from one regime into the other
| Question | MTD for Income Tax | MTD for VAT |
|---|---|---|
| Who is in scope? | Individuals with qualifying self-employment or property income above a staged threshold | VAT-registered businesses, unless exempt |
| What is sent? | Quarterly updates for each relevant business, followed by a tax return through software | VAT Returns prepared from the required digital VAT records |
| Does the Income Tax threshold decide VAT duties? | No | No |
Software comes after scope
First establish which regime applies. Then use HMRC’s software finder and verify that a product supports every income source, task, accounting period or VAT workflow you need. UK Tax Hero does not recommend a product and receives no affiliate payment from these pages.
Use the software requirements checklist or understand free and paid options without a vendor ranking.
Primary sources
- HMRC: Making Tax Digital for Income Tax collection — current Income Tax route; retrieved 1 September 2026.
- HMRC: who needs to use MTD for Income Tax — qualifying income and staged start thresholds; retrieved 1 September 2026.
- HMRC: Making Tax Digital for VAT collection — current VAT route; retrieved 1 September 2026.
- Income Tax (Digital Obligations) Regulations 2026 — statutory Income Tax framework.
- VAT Notice 700/22 — digital VAT records and compatible-software rules.