The complete guide for the self-employed and landlords: who's in scope, the key thresholds and dates, quarterly updates and the software you'll need to stay on the right side of HMRC.
It replaces the once-a-year Self Assessment scramble with digital records and short quarterly check-ins. With the right software, most of it happens as you go.
Record your business income and expenses digitally, on the web or in the mobile app, as they happen.
Four times a year, send HMRC a short summary of your income and expenses. Usually under 10 minutes.
At year-end, confirm your figures and any other income in one final declaration. This replaces your old Self Assessment return.
Your tax and payment dates don't change. MTD changes how you report, not when you pay.
MTD for Income Tax is phased in by income. HMRC adds up your gross income from self-employment and property before expenses, then compares the total to the threshold for the year.
If you're under the threshold you can carry on with annual Self Assessment for now, but keeping tidy digital records means you're ready when the next step lands.
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The threshold steps down each year. Find the line you cross.
Mandatory for sole traders and landlords with gross income over £50,000. If that's you, it applies now.
Threshold drops to £30,000.
Threshold drops to £20,000.
Every trade and income type has its own quirks. Start with the guide built around how you actually earn.
Property income, multiple lets, jointly-owned property and the mortgage interest rules under MTD.
Read the guide →How CIS deductions, materials and your usual tax refund work once you're reporting quarterly.
Read the guide →Van, tools and materials, certification records and a mix of domestic and contract work.
Read the guide →Emergency call-outs, cash jobs, materials markup and the Gas Safe overlap.
Read the guide →Gas Safe costs, boiler installs versus service calls and winter income spikes.
Read the guide →CIS both ways, deposits, staged payments and a materials float.
Read the guide →Workshop and site work, timber, bespoke commissions with deposits and tools.
Read the guide →Seasonal income, scaffolding hire, insurance work and plenty of cash jobs.
Read the guide →Day rate versus price work, CIS deductions and simple sole-trader records.
Read the guide →Mostly CIS day and price rates, minimal materials, PPE and tools.
Read the guide →Big material orders passed to clients, deposits, other trades and cash flow.
Read the guide →Equipment as a capital asset, almost all CIS, inspection and insurance costs.
Read the guide →F-Gas certification, recurring service contracts, install materials and summer demand.
Read the guide →Private and locum work, clinic room rent, insurer billing and HCPC fees.
Read the guide →Clinic ownership or associate room rent, GOsC fees and insurer billing.
Read the guide →Associate room rent, equipment assets, GCC fees and care-plan income timing.
Read the guide →Day rates across pharmacies, agency versus direct, mileage and GPhC fees.
Read the guide →Sessional income across practices, indemnity, GMC fees and pensions kept separate.
Read the guide →Associate percentages of UDA and private work, lab fees, GDC fees and materials.
Read the guide →High-value treatments, product stock, clinic room rent, insurance and training.
Read the guide →Fleet training day rates, an expensive training vehicle, DVSA fees and B2B invoicing.
Read the guide →High gross fares, the vehicle expense decision, plate, licence and circuit fees.
Read the guide →Operator fees, licensing, DBS and the vehicle expense method that suits you.
Read the guide →Platform fees, HMRC getting your earnings direct, and multi-apping across platforms.
Read the guide →Owner-driver contracts, per-drop pay, high mileage and van finance.
Read the guide →Route and franchise fees, van lease and self-billing invoices as records.
Read the guide →Very high turnover, big running costs, truck finance and the O-licence.
Read the guide →No guide for that yet. More trade and sector guides are on the way, ask our MTD assistant in the meantime.
More trade and sector guides are on the way.
Grab the free plan or move up to a paid plan and you'll be set up and submitting in under 15 minutes.
