Making Tax Digital
Making Tax Digital, explained simply
MTD changes how the self-employed and landlords report to HMRC — from one annual return to digital records and regular updates through software. Here's who it affects, when, and how FTrak handles it for you.
Who's affected and when
Thresholds are based on combined gross self-employment and property income. Always check the latest guidance on GOV.UK.
What changes for you
Instead of one Self Assessment return each January, MTD for Income Tax means four quarterly updates during the year and a Final Declaration at the end. Records must be kept digitally, and there must be a digital link from those records to the figures you submit — no manual re-typing.
How FTrak handles it
Track income, expenses, mileage and rental income through the year, connect to HMRC once, and FTrak computes your VAT return and quarterly updates directly from your records and submits them under MTD — with the digital link kept intact. HMRC recognition is in progress.
What FTrak covers today
FTrak is built for income from self-employment and property. If that's your only taxable income, you can do the whole cycle here — records, quarterly updates and the Final Declaration — with no accountant needed. If you also have other income (an employed PAYE job, dividends, savings interest or capital gains) or complex affairs, you may need to account for those separately or take professional advice. We'll always tell you clearly what's in scope before you file.
MTD questions, answered
What is Making Tax Digital?
Making Tax Digital (MTD) is a HMRC programme that requires you to keep digital records and send updates to HMRC using compatible software, instead of a single annual return typed in by hand.
When does MTD for Income Tax start?
MTD for Income Tax Self Assessment is being phased in by income: from 6 April 2026 for sole traders and landlords with qualifying income over £50,000; from April 2027 for over £30,000; and from April 2028 for over £20,000. MTD for VAT already applies to VAT-registered businesses.
What counts as “qualifying income”?
Your gross income (turnover) from self-employment and property before expenses — combined. If the total is above the threshold for the year, you are within MTD for Income Tax.
What do I have to send?
Under MTD for Income Tax you send four quarterly updates during the year plus a Final Declaration that replaces the old Self Assessment return. For VAT you file the usual VAT return (the 9 boxes) each period.
Do I need special software?
Yes — records must be kept digitally and submitted through MTD-compatible software with a “digital link” from your records to the figures. FTrak does both.
Is FTrak HMRC-recognised?
FTrak keeps digital records and submits to HMRC under MTD today. Formal HMRC recognition (being listed on HMRC’s software list) is in progress.