What Changes Under MTD
| Feature | Self Assessment | MTD |
|---|---|---|
| Record-keeping | Paper or digital | Digital only |
| Reporting frequency | Annual | Quarterly + annual |
| Submission method | Online form or paper | Compatible software |
| Tax calculation | After filing | In-year estimates |
| Payment schedule | 31 Jan + 31 Jul | Same (unchanged) |
What Stays the Same
Several aspects remain unchanged:[1]
- Payment deadlines — 31 January and 31 July
- Allowable expenses — same rules apply
- Tax rates and bands — no change
- Payments on account — same system
- Final deadline — 31 January for the final declaration
How to Prepare
- Choose MTD-compatible software well before your start date[2]
- Set up digital records — enter opening balances and ongoing transactions
- Connect bank feeds if your software supports them
- Sign up for MTD through HMRC’s online service
- Authorise your software to communicate with HMRC
Timeline
MTD for Income Tax is being introduced in phases:[1]
| From | Who Must Join |
|---|---|
| April 2026 | Self-employed and landlords with income over £50,000 |
| April 2027 | Self-employed and landlords with income over £30,000 |
Start early: Don’t wait until the mandatory date. Sign up voluntarily to give yourself time to get comfortable with the new process before it’s required. GoFile’s Income Tax software supports voluntary sign-up today.
If You Use an Accountant
Your accountant may handle the MTD transition for you. They’ll need to be authorised for MTD through HMRC’s Agent Services Account (separate from traditional 64-8 authorisation).[2]
Record-Keeping Changes
The biggest change for most people is moving to digital record-keeping from day one. You must record transactions digitally as they happen, not type them up at year-end.[3]
Frequently Asked Questions
What is the difference between Self Assessment and Making Tax Digital?
Under MTD, you must keep digital records (not paper), report quarterly instead of annually, and submit through compatible software rather than HMRC’s online form. Payment deadlines remain the same.
When do I need to switch from Self Assessment to MTD?
Self-employed individuals and landlords with income over £50,000 must join from April 2026, and those with income over £30,000 from April 2027.
Do I need to change accountant for MTD?
Not necessarily, but your accountant will need to be authorised for MTD through HMRC’s Agent Services Account, which is separate from the traditional 64-8 authorisation.
How should I prepare for Making Tax Digital?
Choose MTD-compatible software, set up digital records with opening balances, connect bank feeds if available, sign up through HMRC’s online service, and authorise your software.
Further Reading
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Sources
- Making Tax Digital for Income Tax — GOV.UK
- Sign up for Making Tax Digital for Income Tax — GOV.UK
- Keeping digital records for MTD — GOV.UK