Yes, for businesses and landlords within the scope of MTD. It is already compulsory for VAT-registered businesses, and will become compulsory for sole traders and landlords from April 2026.

What are digital records?

Digital records are electronic records of your business income and expenses, kept in MTD-compatible software. You must maintain these records throughout the year.

What are API submissions?

API submissions are the way your software sends your tax data to HMRC. APIs (Application Programming Interfaces) allow your software to communicate directly with HMRC's systems, replacing manual form filling.

When does MTD for Income Tax start?

MTD for Income Tax Self Assessment starts in phases from April 2026 for sole traders and landlords with qualifying income.

Making Tax Digital (MTD) — definition

Making Tax Digital (MTD) is HMRC's programme requiring you to keep digital records and send returns through compatible software via HMRC's APIs. It already applies to VAT and applies to Income Tax Self Assessment for sole traders and landlords in phases from April 2026.

In one paragraph

Making Tax Digital (MTD) is HMRC's initiative to digitise the tax system. Under MTD, you must keep digital records of your business income and expenses, and submit returns to HMRC using software that connects to HMRC's Application Programming Interfaces (APIs). This replaces paper-based or manual submissions with a more automated process.

MTD for VAT

MTD for VAT is already in place. If you are VAT-registered, you must keep digital records and file your VAT returns using MTD-compatible software. This applies to all VAT-registered businesses, regardless of turnover. You can find more details in our [guide to MTD for VAT].

MTD for Income Tax

MTD for Income Tax Self Assessment (ITSA) starts in phases from April 2026. It will apply to sole traders and landlords with qualifying income. You will need to keep digital records and submit quarterly updates to HMRC through compatible software. For more on the deadlines, see our [guide to MTD ITSA quarterly update deadlines].

Related terms

Digital records: Electronic records of your income and expenses, kept in software that is compatible with MTD.
API submissions: Sending your tax data to HMRC through an Application Programming Interface, which allows software to communicate directly with HMRC's systems.
Quarterly updates: Regular summaries of your income and expenses that you send to HMRC during the tax year under MTD for Income Tax.