Making Tax Digital for Income Tax (MTD for IT) changes how sole traders and landlords report their self-employment and property income to HMRC.
Under MTD for IT, you will:
- Use third party MTD-compatible software to manage and report income information to HMRC
- Keep digital records of your income and expenses, using software such as spreadsheets
- Create digital links to these digital records, using for example bridging software such as AbraTax
- Send quarterly updates to HMRC for each business
- View real time estimates of your tax position and liabilities
- Complete and submit your tax return, including any adjustments and other income or gains
The deadline for submitting your tax return and paying any tax due is 31 January following the end of the tax year.