HMRC timeline · United Kingdom

HMRC Making Tax Digital — 2015 to MTD ITSA 2026

How HMRC's MTD programme evolved from a 2015 vision to a multi-tax digital framework with VAT now fully digital and Income Tax Self Assessment arriving April 2026.

Making Tax Digital (MTD) is HMRC's long-term programme to digitise the UK tax system — replacing paper returns and the legacy online portal with API-connected accounting software and quarterly digital reporting. VAT was first in 2019 (mandatory for all VAT-registered businesses since 2022), with Income Tax Self Assessment (MTD ITSA) following in April 2026 for sole traders and landlords above £50,000, dropping to £30,000 in April 2027. Corporation tax remains under design with no firm date. For UK businesses, choosing MTD-compatible software now (HMRC-recognised list) is a defensive investment — by 2026, most income earners will need to use digital records year-round, not just at tax return time.

Timeline — MTD VAT, MTD ITSA and CT

  1. 2015

    HMRC publishes Making Tax Digital strategy — digital records and quarterly updates across all main taxes by 2020.

  2. 2017

    Finance Act 2017 sets the MTD framework into law (Schedule 14). Original plan: VAT first, income tax 2018, corporation tax 2020.

  3. 2019

    MTD for VAT goes live for VAT-registered businesses above the £85,000 threshold — first major MTD implementation.

  4. 2022

    MTD for VAT becomes mandatory for ALL VAT-registered businesses regardless of turnover, including voluntary registrations.

  5. 2023

    HMRC's new penalty regime for VAT — points-based late submission + percentage late payment + base-rate-plus interest.

  6. April 2026

    MTD for Income Tax Self Assessment (MTD ITSA) goes live for sole traders + landlords above £50,000 annual income.

  7. April 2027

    MTD ITSA mandatory threshold drops to £30,000 income — covering most self-employed and small landlords.

  8. TBD

    MTD for Corporation Tax remains under design — original 2026 target delayed; current HMRC roadmap suggests post-2027 timeframe.

MTD ITSA arrives April 2026 — prepare now

4invoices is on HMRC's MTD-compatible software list. Start with VAT today, extend to ITSA when it lands. 6 months free, no card.

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