WHAT IS (MTD) MAKING TAX DIGITAL?
Learn all about HMRC's new rules of Making Tax Digital, how you might be affected by MTD, and how MTDflow can help.
WHEN MTD APPLIES TO YOU
Apr 2026
£50,000+
Apr 2027
£30,000+
Apr 2028
£20,000+
The income threshold drops every year. Most self-employed tradespeople are in scope by 2028. You will need compatible MTD software to file.
QUESTIONS ABOUT MTD
How Does Making Tax Digital Work?
Making Tax Digital (MTD) is a new HMRC requirement that changes how self-employed people and sole traders manage and submit their tax. Instead of filing just once a year, you’ll need to start sending updates every 3 months - oh and don't forget you will still need to complete your end-of-year tax return!
When Does MTD Start?
If you are self-employed with a turnover over £50,000, there’s a good chance you’ve already started preparing for MTD. This threshold will reduce to £30,000 in April 2027, before becoming mandatory for anyone earning over £20,000 from April 2028.
What Software Can You Use for MTD?
To stay fully compliant with these new HMRC rules, it’s recommended you start using MTD-compatible software and there are a couple to pick from. However, what makes MTDflow different is we are for tradespeople only. We wanted to build a specialty app just for sole traders and CIS workers as we know how complicated your tax can be.
MANDATORY
For self-employed, sole traders and landlords.
UPDATE HMRC
Send updates to HMRC every 3 months instead of just annually.
EARN OVER £3OK?
If you earn over £30k a year, MTD will apply from April 2027.
£200 LATE FINE
You will be fined £200 once you reach 4 penalty points for late submissions.
