2026
HMRC reports 436,000 first quarterly updates and starts signing people up
More than 436,000 sole traders and landlords had sent their first update and over 570,000 had signed up. HMRC said it would start signing up people who should be using the service from September 2026.
HMRC: 436,000 sole traders and landlords make their tax digital
First quarterly update deadline set at 7 August 2026
HMRC reminded sole traders and landlords over £50,000 that the first update, for the period to 5 July or 30 June, was due by 7 August 2026.
HMRC: deadline approaches for first Making Tax Digital quarterly update
Agent update special edition on the first quarterly update
HMRC published a special agent update with guidance and videos on completing and sending a client's first quarterly update.
Online registration for tax advisers opens
HMRC opened its online service for mandatory tax adviser registration, which runs through the agent services account.
HMRC: check if and when you need to register as a tax adviser
Making Tax Digital for Income Tax starts
Sole traders and landlords with qualifying income over £50,000 on their 2024 to 2025 return must keep digital records and send quarterly updates.
HMRC: find out if and when you need to use Making Tax Digital for Income Tax
£20,000 threshold policy paper published
HMRC published its policy paper on reducing the threshold to £20,000 from 6 April 2028, estimating 970,000 more people in scope.
HMRC: reduction of the mandation threshold from £30,000 to £20,000
Income Tax (Digital Obligations) Regulations 2026 made
The regulations were made on 23 March, laid on 24 March and came into force on 1 April 2026. They set the £50,000, £30,000 and £20,000 thresholds and revoke the 2021 regulations.
Finance Act 2026 receives Royal Assent
Sections 256 to 262 cover who digital reporting can apply to, exemptions, electronic returns and HMRC's power to cancel or reset penalty points.
HMRC publishes penalties guidance for Making Tax Digital for Income Tax
The guidance sets out one point per missed deadline, a £200 penalty at 4 points, no quarterly points for 2026 to 2027 and the late payment penalty rates.
Mandatory tax adviser registration guidance published
HMRC published guidance on when paid tax advisers must register with HMRC.
HMRC: check if and when you need to register as a tax adviser
HMRC says 864,000 face the rules from April 2026
HMRC said more than 860,000 sole traders and landlords needed to start from 6 April 2026, and that more than 20,000 updates had been sent in the testing programme.
HMRC: act now, 864,000 sole traders and landlords face new tax rules
HMRC publishes an agent toolkit
The toolkit covers planning, preparing the practice and preparing clients, including the boxes that make up qualifying income.
2025
Draft legislation on Making Tax Digital and penalty reform
HMRC published draft legislation including filing the tax return through software and a power to cancel or reset penalty points, for comment until 16 September 2025.
One year to go and the testing programme
HMRC confirmed the April 2026, 2027 and 2028 phases and asked eligible people to join the testing programme.
HMRC: one year until Making Tax Digital for Income Tax launches
Main and supporting agents guidance published
HMRC published guidance on main and supporting agents, with a table of what each can do.
Late payment penalty rates rise
For VAT and Making Tax Digital for Income Tax the rates rose to 3% at day 15, 3% at day 30 and 10% a year from day 31.
£20,000 threshold from April 2028 announced
At Spring Statement 2025 the government extended the service to income over £20,000 from April 2028, required returns through the software and set out new exemptions.
HMRC: technical note, modernising the tax system through Making Tax Digital
Final evaluation of Making Tax Digital for VAT
HMRC published its final evaluation, drawing on four studies of software use, errors, costs and benefits.
2024
Penalties for Income Tax volunteers published
HMRC set out the penalties that apply to people volunteering for Making Tax Digital for Income Tax.
HMRC: penalties for Making Tax Digital for Income Tax volunteers
2023
Small Business Review outcome
Quarterly updates became cumulative, the End of Period Statement was removed, and the government committed to a National Insurance number exemption and to letting several agents act.
National Audit Office reports on Making Tax Digital
The NAO described the December 2022 change as the fourth delay to the Self Assessment timetable and reported rising programme costs.
Points-based VAT late submission penalties begin
For VAT periods starting on or after 1 January 2023, late returns earn points, with a £200 penalty at the threshold.
2022
Phased start for Income Tax announced
The start moved to April 2026 for income over £50,000 and April 2027 for income over £30,000. General partnerships would not join in 2025.
HMRC: government announces phased mandation of Making Tax Digital for ITSA
Making Tax Digital for VAT covers all VAT-registered businesses
Businesses under the VAT threshold must keep digital records and file through software from their first VAT period starting on or after 1 April 2022.
HMRC estimates additional VAT from Making Tax Digital
HMRC estimated additional VAT of £185 million or £195 million for 2019 to 2020, depending on the method.
HMRC: evaluating additional tax revenue from Making Tax Digital for VAT
2021
Income Tax start moved to April 2024
The start moved a year to April 2024 for income over £10,000, with general partnerships from April 2025. The 2021 regulations were made the same day.
HMRC: businesses get more time to prepare for digital tax changes
2020
Roadmap for VAT in 2022 and Income Tax in 2023
On Legislation Day the government set out Making Tax Digital for all VAT businesses from April 2022 and for Income Tax from April 2023.
2019
Making Tax Digital for VAT starts
VAT businesses over the registration threshold must keep digital records and file through software from their first period starting on or after 1 April 2019.
legislation.gov.uk: Value Added Tax (Amendment) Regulations 2018
2017
Finance (No. 2) Act 2017 receives Royal Assent
Section 60 added digital reporting and record-keeping rules for Income Tax to the Taxes Management Act 1970.