Glossary · UK
What is Making Tax Digital (MTD)?
HMRC's digital reporting system — quarterly updates using approved software.
Full Definition
Making Tax Digital (MTD) is HMRC's programme to digitise UK tax. Already mandatory for all VAT-registered businesses since April 2022. MTD for Income Tax Self Assessment (ITSA) is rolling out: April 2026 for self-employed and landlords with income above £50,000; April 2027 for income above £30,000; April 2028 (planned) for income above £20,000. Requires keeping digital records using HMRC-approved software (e.g. Xero, QuickBooks, FreeAgent, FreshBooks) and submitting quarterly updates plus an End of Period Statement and Final Declaration.
See Also
Disclaimer: Definitions are for guidance only. For decisions about your tax, savings, property or pension situation, always consult a qualified professional or refer to gov.uk.