Making Tax Digital Readiness Checker
Answer a few questions to see your MTD obligations, get a readiness score, and receive a personalised action checklist. Covers both MTD VAT (already mandatory) and MTD Income Tax Self Assessment (ITSA) rolling out April 2026–2028.
MTD Readiness Checker
Answer the questions below to assess your Making Tax Digital readiness
Determines whether MTD ITSA applies to you
Used to calculate your MTD ITSA obligation date
MTD for VAT has been mandatory since April 2022
How do you currently maintain your business records?
Enter your annual turnover to see your results.
MTD VAT — Already Mandatory
Since April 2022, all VAT-registered businesses must keep digital VAT records and submit returns via MTD-compatible software or bridging software. If you are still using manual methods, switch immediately to avoid penalties under the new points-based system.
MTD ITSA — Phased Rollout 2026–2028
MTD for Income Tax applies to sole traders and landlords (not limited companies) with qualifying income above these thresholds:
- April 2026: Income over £50,000/year
- April 2027: Income over £30,000/year
- April 2028: Income over £20,000/year
Under MTD ITSA you will submit four quarterly updates per year plus an end-of-period statement, replacing the annual Self Assessment tax return.
Choosing MTD-Compatible Software
HMRC publishes a list of approved MTD software on GOV.UK. Popular options include QuickBooks, Xero, Sage, FreeAgent, and many others. Look for software that handles both quarterly updates and the final declaration. Spreadsheet-only users must use HMRC-approved bridging software.
Appointing a Tax Agent
An authorised tax agent (accountant) can sign up for MTD on your behalf and submit quarterly updates using their agent software. If you find compliance complex, appointing an agent is often the most cost-effective route.