What is Making Tax Digital for Income Tax

What are the costs?

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What’s included
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HMRC-recognised
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Simple spreadsheet bridging software
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Keep your existing processes
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Live tax calculations
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Works for sole traders & landlords
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UK-based support team
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Who is Affected and When?

The rollout of MTD for IT is being phased based on your total annual gross income from self-employment and/or property, also known as "qualifying income". Anyone that earns income from self-employment such as sole traders, and property either in the UK or foreign such as landlords are required to comply with the new legislation.

Examples of those likely affected include:

Self-employed

  • Sole traders
  • Taxi / Uber drivers
  • Food delivery partners
  • Home tutors
  • Cleaners
  • Trades people
  • Electricians, plumbers
  • Builders and construction contractors
  • Gardeners
  • IT Contractors
  • Freelancers
  • Online content creators
  • Driving instructors

Property

  • Landlords
  • Airbnb lettings
  • Furnished holiday lets
  • Rent a room scheme

HMRC MTD for Income Tax timeline of those affected

Before April 2026

Public beta open

From April 2026

From April 2026: Mandatory for sole traders and property landlords with a qualifying income of over £30,000.

From April 2027

From April 2027: Mandatory for sole traders and property landlords with a qualifying income of over £50,000.

From April 2028

From April 2028: Mandatory for sole traders and property landlords with a qualifying income of over £20,000.

Later TBD

From April 2028: Mandatory for sole traders and property landlords with a qualifying income of over £20,000.

Key MTD Income Tax changes

  • Filing via MTD-compliant software required
  • 4 quarterly submissions per business (including property businesses) must be made
  • Digital records must be kept, and these are required to link digitally to submissions
  • Live tax liability estimates can be obtained throughout the year
  • A final declaration of both MTD and non-MTD incomes made once per year

Key Benefits: Why Use AbraTax for MTD IT?

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HMRC-recognised

Submit updates directly to HMRC

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Simple spreadsheet bridging software

Use our downloadable templates to effortlessly link digital records and upload your records

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Keep your existing processes

Continue to work the way you like with spreadsheet record keeping, and simply use our bridging software to comply with the requirements of MTD

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No cost

Free to get started

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Live tax calculations

Built-in tax calculations - view your live tax liability anytime as you, and be better prepared

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Works for sole traders & landlords

Easy setup, no jargon

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UK-based support team

Get help and access to a dedicated HMRC MTD team

How It Works: Getting Started is Easy

  1. 1

    Sign Up - Create your AbraTax account

  2. 2

    Connect your Unique Taxpayer Reference (UTR) and National Insurance number

  3. 3

    Add income and expenses - Digitally link income and expenses using our spreadsheet bridging template by creating formulas between sheets

  4. 4

    Upload digitally linked records - Drag and drop the complete spreadsheet to upload.

  5. 5

    Submit quarterly returns to HMRC - Check and file quarterly updates in a click

Accountants and Tax Agents

AbraTax is building agent features for managing multiple clients, submissions, and authorisations.

Be the first to try it – contact us now for early access

Not ready for MTD IT yet?

Use AbraTax MTD VAT and Self Assessment today

If you're not ready for MTD for Income Tax yet, continue submitting your regular Self Assessment returns using our Self Assessment product.

In addition, if you need to submit VAT returns, take a look at our MTD-compatible VAT submission product.

FAQs

What is qualifying income?

Qualifying income is the total gross income (turnover or revenue) from your self-employment and property businesses combined (before any expenses).

Will my tax payment deadlines change?

No. While you'll need to submit quarterly updates and an End of Period Statement, your tax payment deadlines remain the same:


  • 31 January for balancing payments and the first payment on account
  • 31 July for the second payment on account

What are the deadlines for submission?

You must submit a summary of income and expenses for each business on a quarterly basis, no later than one month after the end of each quarter:


You must submit one EOPS per business after the end of the tax year, by 31 January following the tax year.


The Final Declaration replaces the traditional Self Assessment tax return and must also be submitted by 31 January following the end of the tax year.

What are the penalties for not complying?

HMRC is introducing a points-based penalty system:


  • You get a point for each late submission
  • Once you reach a threshold (e.g. 4 points for quarterly filers), you'll receive a £200 fine
  • Late payments may also attract separate penalties and interest

Are there any exemptions from MTD for ITSA?

Yes. You may be exempt if:


  • It's not reasonably practical for you to use digital tools due to age, disability, or remote location
  • You’re part of a religious society whose beliefs prevent you from using electronics. You must apply to HMRC for an exemption and get confirmation.

What if I have more than one business?

You can still use our bridging tool. You'll need to:


  • Keep separate digital records for each business
  • Submit a quarterly update and EOPS for each
  • Submit a single Final Declaration that covers all your income sources

Do I need to stop using spreadsheets?

No. You can continue using spreadsheets as long as you use bridging software to digitally link your records and submit updates to HMRC.

What is bridging software?

Bridging software connects your spreadsheet to HMRC using formulas between our spreadsheet template and your digital records, allowing you to submit MTD-compliant updates without changing your current bookkeeping process.

What do I need to submit under MTD IT?

You must send:


  • Quarterly updates (summary of income and expenses)
  • An End of Period Statement (EOPS) for each business
  • A Final Declaration (replacing your Self Assessment tax return)

Can I use Excel or Google Sheets with your product?

Yes. Our bridging software works with both Excel and Google Sheets, as long as your records are structured correctly.

How do I link my spreadsheet to HMRC?

Our product lets you download a spreadsheet template for each business or property submission required. These templates are linked to your digital records using formula, meeting the HMRC legal definition of a digital link. After uploading the populated template, you can review and submit your figures to HMRC in a few clicks—without retyping anything.

What counts as a “digital link”?

A digital link means data must flow from your spreadsheet to the bridging tool without manual copying and pasting. Formulas that referencing between two spreadsheets meet the legislation requirements.

Do I need to register separately for MTD IT with HMRC?

Yes. You must sign up for MTD IT through your HMRC online account before submitting your first update.


You also need to enter your business or property details as part of this process before viewable in any software.

How much does it cost?

We offer simple, affordable pricing with plans for individuals, agents, and multiple businesses. View our pricing

What support is available in the testing phase?

Customers participating in the MTD testing phase will receive contact details for a dedicated Customer Support Team, available Monday to Friday, 8am to 6pm.


HMRC aims to resolve queries at first contact where possible. If further action is needed, they aim to respond within 2 working days and provide updates every 2 working days thereafter, if required.

Join our MTD for Income Tax waiting list

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