What Is MTD and Who Does It Apply To?
MTD stands for Making Tax Digital—a UK Government initiative to digitise tax.
It applies to:
- VAT-registered individuals
- Self-employed individuals earning £50,000+ (from April 2026)
- Landlords earning £50,000+ in rental income
- Individual with both Landlord and Self-employed income of above £50,000
From April 2027, this drops to £30,000.
What’s the Difference Between MTD for VAT and MTD for IT?
- MTD for VAT has been live since April 2019
- MTD for IT begins April 2026
VAT users submit quarterly VAT returns. IT users submit quarterly income & expense reports + a final declaration.
What Software Do I Need?
You’ll need MTD-compliant software.
Here are my recommendations:
- FreeAgent (great for landlords, free via Mettle/NatWest)
- Xero Simple Start (ideal for sole traders)
Avoid spreadsheets unless you have bridging software, manual records won’t be compliant.
What Are the Key Deadlines?
You’ll submit 5 times per year:
| Period Ends | Submission Due |
|---|---|
| 30 June | 7 August |
| 30 September | 7 November |
| 31 December | 7 February |
| 31 March | 7 May |
| Final Declaration (end of the tax year) | 31 January (following year) |
What If I Miss a Deadline?
HMRC uses a penalty points system:
- 1 point per missed deadline
- 4 points = £200 fine
These points reset if you stay compliant for a period of time.
How Can I Get Started Today?
- Talk to your accountant
- Choose your software
- Open a dedicated bank account
- Begin tracking 2024–25 data digitally
- Keep up-to-date and do our MTD readiness quiz.
Still Have Questions?
MTD might feel overwhelming, but it doesn’t have to be.
The Nuvo team are running webinars, tutorials, and hands-on support sessions to make sure every client is MTD-ready before the deadline hits.
