Digital records.
Keep business income and expenses in MTD-compatible software. A spreadsheet may need bridging software.
What Making Tax Digital means for you.
For many self-employed people, MTD for Income Tax means keeping digital records and using compatible software for quarterly updates and the tax return. This page covers the dates, the basic rules, what Kwilo can prepare and what still happens elsewhere.
Record preparationIncome Tax MTDSingle-source sole trader scope
What is Making Tax Digital for Income Tax?
Making Tax Digital for Income Tax changes how some self-employed people and landlords keep records and report income to HMRC. Records must be kept digitally and updates sent through compatible software or an authorised agent.
If you’re self-employed or a landlord earning above the threshold, MTD for Income Tax means keeping digital records, sending quarterly updates and completing the tax return through compatible software or an authorised agent setup.
In short: keep digital records, check the figures and use the software or authorised agent that holds filing authority.
Quarterly updates spread the record-keeping across the year. You still need to check the figures and keep the receipts or other evidence behind them.
When do you need to start?
HMRC is phasing MTD for Income Tax in by qualifying income. Use the figures below as a guide and check the latest HMRC guidance.
April 2026
> £50k
Now in effect above £50,000.
If your qualifying self-employment or property income for 2024–25 was over £50,000, you have needed to use MTD from 6 April 2026, unless exempt.
In effectApril 2027
> £30k
Extends above £30,000.
If your qualifying income for 2025–26 is over £30,000, you need to use MTD from 6 April 2027.
Next upApril 2028
> £20k
Extends above £20,000.
People with qualifying income over £20,000 come into scope from 6 April 2028, unless exempt.
ConfirmedTBC
≤ £20k
No start date below £20,000.
Not currently required to join by income threshold. Keeping clear digital records now can reduce later preparation, but check the supported workflow you need before relying on any software.
OptionalWhat MTD requires from you.
Keep digital records and make sure quarterly updates and the tax return are sent through compatible software or an authorised agent.
Quarterly updates.
Use compatible software or an authorised agent to send quarterly summaries of income and expenses to HMRC.
Tax return.
Once a year, confirm the figures, add anything else that belongs on your tax return, and submit it by the usual deadline.
Compatible software.
The software or authorised agent that holds filing authority sends the updates and tax return to HMRC.
See what Kwilo prepares before anything is filed.
See the tax year so far, then review the income, expenses and evidence behind the figures before taking the records to the accounting package, compatible software or authorised agent that handles the filing.
- Keep records as you work
Income, expenses and receipts stay together.
- Check the period
See what is ready and what still needs attention.
- Fix what is missing
Add receipts, categories or other details.
- Take the records to the filing authority
Use your accounting package, compatible software or authorised agent.
You stay in control. Kwilo prepares the records in its supported scope; it does not currently file quarterly updates or Final Declarations with HMRC.
Check the records before they leave Kwilo.
Review the quotes, invoices, payments and expenses already recorded in Kwilo. Check what is ready and fix what is missing before taking the figures to the system or adviser that files for you.
Income Tax MTD for one self-employment source.
Kwilo prepares self-employment records for sole traders with one supported self-employment source. The app shows what is ready, what still needs review, and where professional advice may be needed.
The filing happens outside Kwilo.
Use your connected accounting package, another compatible software route or an authorised agent to send quarterly updates and complete the tax return. Check current HMRC guidance for deadlines and penalties.
Questions about MTD.
I’ve had an accountant for years. Does this change anything?
Invite the accountant or bookkeeper you already use into Kwilo as an Advisor, or connect Xero, QuickBooks or FreeAgent and continue working there. Kwilo prepares the records for review; your accounting package or authorised agent remains responsible for filing.
What counts as “income” for the threshold?
Your total qualifying gross income from self-employment and property, before expenses, is used for the threshold. HMRC uses the qualifying income reported on the relevant tax return to decide when you must start. Check the current guidance if you have more than one income source.
Do I need to send an update for a quiet period?
A quiet period may still need a quarterly update. Kwilo helps prepare the records in its supported scope, but it does not currently send the update to HMRC. Check the requirement and use the software or authorised agent that handles your filing.
What about VAT MTD — is that the same thing?
No. MTD for VAT and MTD for Income Tax are separate regimes with separate rules. Support for one does not mean the other is supported, so check the workflow you need.
What if I’m below the threshold?
You are not currently required to join based on the published income thresholds. You can still keep digital records now, but future eligibility, dates and software support can change, so check the workflow that applies when your wave approaches.
Does Kwilo support landlord or property-income MTD?
Not in the current supported workflow. Kwilo’s Income Tax MTD support is limited to preparing records for sole traders with one supported self-employment source; landlords and people with property income should use an appropriate compatible-software or authorised-agent route.
Can HMRC see my bank account?
Quarterly updates contain summary figures for income and expenses rather than your bank balance. The software or authorised agent that handles your filing determines what is sent, so review the figures and current HMRC guidance before submission.
Not tax adviceThis page explains MTD in plain English, checked against HMRC guidance on 29 August 2026. Rules and dates can change — always check gov.uk/making-tax-digital or speak to your accountant for advice on your specific situation.
Keep the records up to date as you go.
At quarter end, review what is ready, add what is missing and check the figures before taking the records to the filing authority.