1. Know your status
MTD for Income Tax applies to sole traders. The threshold depends on which wave you're in.
I know whether MTD applies to me and from which date
Over £50k gross income — April 2026. Over £30k — April 2027. Over £20k — April 2028.
I know my gross income figure (not profit — total income before expenses)
This is what HMRC uses to determine which wave you fall into.
I understand that MTD means quarterly updates to HMRC, not just an annual tax return
You'll submit a summary of income and expenses every three months, plus a final declaration at year end.
2. Software and records
MTD requires HMRC-compatible software. Spreadsheets alone won't cut it.
I am using (or have chosen) HMRC-compatible software
Examples: FreeAgent, QuickBooks, Xero, Sage. Must be able to submit quarterly updates directly to HMRC.
I am keeping digital records of all income and expenses
Pen and paper or basic spreadsheets won't meet MTD requirements. Everything needs to be digital.
My records are up to date — not months behind
Quarterly submissions require records to be current. Getting behind makes everything harder.
3. HMRC registration
You need to sign up for MTD separately — it doesn't happen automatically.
I have signed up for MTD for Income Tax with HMRC
This is completely separate to registering for Self Assessment — being on Self Assessment does not mean you are signed up for MTD. It will not happen automatically. You or your accountant must actively sign up through HMRC's MTD service.
My software is connected to my HMRC account and able to submit
Registration and software connection are two separate steps. Both need to be done.
4. Accountant and support
MTD works best when someone who knows what they're doing is in your corner.
My accountant is MTD-ready and actively supporting me through this
Not all accountants are on top of MTD. If yours hasn't mentioned it, that's worth a conversation.
I know when my first quarterly submission is due
Dates depend on when your accounting period starts. Don't guess — confirm with your accountant.
5. The honesty check
No tick required here — just be honest with yourself.
Are you confident you've got MTD under control?