Making Tax Digital (MTD) is HMRC's initiative to modernise the UK tax system. It requires businesses and individuals to keep digital records and submit tax information using compatible software.
For many sole traders and landlords, MTD for Income Tax Self Assessment (MTD ITSA) means keeping digital records throughout the year and submitting quarterly updates to HMRC, followed by a final declaration.
The key requirements include maintaining digital records of all income and expenses, using MTD-compatible software, and ensuring your records are digitally linked — meaning data flows between your records and your tax submission without manual re-keying.
If you're unsure whether MTD applies to you or what steps you need to take, a readiness review can help you understand your obligations and get prepared well ahead of any deadlines.
If you're unsure where to start, our Making Tax Digital support covers readiness reviews, software setup and ongoing submissions.