--- title: MTD for self assessment description: Blog post on new MTD requirements explaining making tax digital for income tax --- [Skip to content](https://rclaccountants.co.uk/blog/mtd-for-self-assessment#main-content) [office@pjcacs.co,uk](mailto:office@pjcacs.co.uk) Call us now on [01929 550802](tel:+441929550802) [Chartered Certified Accountants](https://rclaccountants.co.uk/hubfs/which-accountant-would-you-choose.pdf) [Book a free no obligation call with a specialist now](https://calendly.com/samrclacc/30min) [![Specialist construction accountants in Dorset](https://rclaccountants.co.uk/hs-fs/hubfs/no%20background-1.png?width=250&height=233&name=no%20background-1.png)](https://www.rclaccountants.co.uk) - [Home](https://rclaccountants.co.uk/) - Our services Show submenu for Our services - [MTD for income tax](https://rclaccountants.co.uk/making-tax-digital-mtd-for-income-tax) - [Limited Companies](https://rclaccountants.co.uk/limited-companies) - [Corporation tax](https://rclaccountants.co.uk/corporation-tax) - [Sole traders](https://rclaccountants.co.uk/sole-traders) - [Self assessment](https://rclaccountants.co.uk/self-assessment) - [Cloud accounting and bookkeeping](https://rclaccountants.co.uk/cloud-accounting-and-bookkeeping) - [Payroll services](https://rclaccountants.co.uk/payroll-services) - [Tax planning](https://rclaccountants.co.uk/tax-planning-in-the-construction-industry) - [CIS scheme](https://rclaccountants.co.uk/cis-scheme) - [VAT in construction](https://rclaccountants.co.uk/vat-in-the-construction-industry) - [HMRC Problems](https://rclaccountants.co.uk/hmrchelp) - [Why change accountant?](https://rclaccountants.co.uk/why-change-accountants) - [The Construction Industry](https://rclaccountants.co.uk/the-construction-industry) - [Contact us](https://rclaccountants.co.uk/contact-us) - Blogs Show submenu for Blogs - [MTD for self assessment](https://rclaccountants.co.uk/blog/mtd-for-self-assessment) - [Autumn budget update](https://rclaccountants.co.uk/blog/autumn-budget-update-what-the-latest-changes-mean-for-you-and-your-business) - [New Year......New Accountant](https://rclaccountants.co.uk/blog/new-year......new-accountant) Open main navigation Close main navigation - [Home](https://rclaccountants.co.uk/) - Our services Show submenu for Our services - [MTD for income tax](https://rclaccountants.co.uk/making-tax-digital-mtd-for-income-tax) - [Limited Companies](https://rclaccountants.co.uk/limited-companies) - [Corporation tax](https://rclaccountants.co.uk/corporation-tax) - [Sole traders](https://rclaccountants.co.uk/sole-traders) - [Self assessment](https://rclaccountants.co.uk/self-assessment) - [Cloud accounting and bookkeeping](https://rclaccountants.co.uk/cloud-accounting-and-bookkeeping) - [Payroll services](https://rclaccountants.co.uk/payroll-services) - [Tax planning](https://rclaccountants.co.uk/tax-planning-in-the-construction-industry) - [CIS scheme](https://rclaccountants.co.uk/cis-scheme) - [VAT in construction](https://rclaccountants.co.uk/vat-in-the-construction-industry) - [HMRC Problems](https://rclaccountants.co.uk/hmrchelp) - [Why change accountant?](https://rclaccountants.co.uk/why-change-accountants) - [The Construction Industry](https://rclaccountants.co.uk/the-construction-industry) - [Contact us](https://rclaccountants.co.uk/contact-us) - Blogs Show submenu for Blogs - [MTD for self assessment](https://rclaccountants.co.uk/blog/mtd-for-self-assessment) - [Autumn budget update](https://rclaccountants.co.uk/blog/autumn-budget-update-what-the-latest-changes-mean-for-you-and-your-business) - [New Year......New Accountant](https://rclaccountants.co.uk/blog/new-year......new-accountant) - [Book a free no obligation call with a specialist now](https://calendly.com/samrclacc/30min) [Book a free no obligation call here](https://calendly.com/samrclacc/30min) Apr 20, 2025, 5:39:37 PM # MTD for self assessment [ICAEW](https://rclaccountants.co.uk/blog/author/icaew) Making Tax Digital (MTD) for Income Tax and the concept of "DAEs" (Digital Accounting Entries) are intertwined as the former necessitates the latter for compliance. Let's break down each aspect: ### Making Tax Digital (MTD) for Income Tax Rules Making Tax Digital is a government initiative aimed at digitalizing the tax system in the UK. For Income Tax, it introduces new rules for how certain individuals and businesses record and report their income and expenses to HM Revenue and Customs (HMRC). Here's a comprehensive explanation of the rules: **1. Who is Affected and When?** MTD for Income Tax will be rolled out in phases based on income levels: - **From 6 April 2026:** Individuals with a gross income from self-employment and/or property exceeding **£50,000** per year. - **From 6 April 2027:** Individuals with a gross income from self-employment and/or property exceeding **£30,000** per year. - **From 6 April 2028:** Individuals with a gross income from self-employment and/or property exceeding **£20,000** per year. These thresholds are based on the total turnover/gross income from all self-employment and property income sources. HMRC will look at specific boxes on the Self Assessment return to determine if these thresholds are met (e.g., SA103F box 15, SA105 box 20). **2. Key Requirements:** Once mandated, affected taxpayers will need to: - **Maintain Digital Records:** Keep records of income and expenses digitally using MTD-compatible software or spreadsheets linked with bridging software. Paper records will no longer be sufficient. - **Submit Quarterly Updates:** Provide HMRC with a summary of their business income and expenses at least every three months using their chosen MTD-compatible software. The deadlines for these quarterly updates are typically: - 6 April to 5 July: Deadline 7 August - 6 July to 5 October: Deadline 7 November - 6 October to 5 January: Deadline 7 February - 6 January to 5 April: Deadline 7 May - **Submit a Final Declaration:** At the end of the tax year (by 31 January following the tax year-end), a final declaration must be submitted. This replaces the traditional Self Assessment tax return for self-employment and property income. It allows for confirming the accuracy of the quarterly updates and including details of other income and tax reliefs. **3. What Needs to be Recorded Digitally?** The regulations require functional compatible software to: - **Maintain digital records** of all business transactions. - **Preserve** those digital records. - **Provide a quarterly update** to HMRC based on these records. - **Provide corrections** to digital records when necessary. While spreadsheets can be used, they must be digitally linked if data is moved between them. Manually copying and pasting data is generally not permitted under MTD rules. **4. Exemptions:** Certain individuals and entities are currently exempt from MTD for Income Tax, although some of these exemptions may be reviewed in the future: - Non-UK resident foreign entertainers and sportspeople 1 with no other qualifying UK income. ## Related posts ## [Autumn Budget Update: What the Latest Changes Mean for You and Your Business](https://rclaccountants.co.uk/blog/autumn-budget-update-what-the-latest-changes-mean-for-you-and-your-business) [RCL Accountants](https://rclaccountants.co.uk/blog/author/rcl-accountants) Dec 31, 2025, 3:12:44 PM The Chancellor’s Autumn Budget has introduced a number of measures that will affect individuals,... [Read more](https://rclaccountants.co.uk/blog/autumn-budget-update-what-the-latest-changes-mean-for-you-and-your-business) ## [New Year, New Accountant: Is It Time to Make a Smarter Choice?](https://rclaccountants.co.uk/blog/new-year......new-accountant) [RCL Accountants](https://rclaccountants.co.uk/blog/author/rcl-accountants) Dec 31, 2025, 3:22:05 PM A new year is the perfect time to review what’s working in your business — and what isn’t. You... [Read more](https://rclaccountants.co.uk/blog/new-year......new-accountant) Ready to simplify your accounts? 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