What is Making Tax Digital (MTD) for Income Tax?
MTD for Income Tax is the requirement for certain individuals with self-employment and/or property income to:
•Keep digital records of income and expenses
•Submit quarterly updates of income and expenses totals to HMRC from an MTD compatible program.
•Submit a year-end final declaration of income tax to HMRC from an MTD compatible program.
If an individual's total income (exc any VAT) from self-employment and property was over £50,000 for the 2024/25 tax year, they come under MTD for Income Tax requirements from 6 April 2026. You can check if you come under the requirements by using this HMRC tool.
VT users can submit quarterly updates from either VT Transaction+, VT Cash Book, VT MTD for Excel or VT Report.
How many quarterly updates do you need to submit?
You are required to submit a set of four quarterly updates in a tax year for each of the income types below:
•Self employment (one set for each business you own)
•UK property (one set for total UK property income)
•Foreign property (one set for each foreign property you own)
When to use VT Report
VT Report is VT's own spreadsheet program, with MTD functionality.
If you already do your bookkeeping in VT Transaction+/VT Cash Book, VT Report is not required and you should submit quarterly updates directly from those programs as shown here.
If you do your bookkeeping in spreadsheets (or an accounting program that is not MTD compatible), VT Report can be used as bridging software to submit quarterly updates.
Although VT MTD for Excel can also be used for submitting quarterly updates, VT Report is recommended as it is a superior product to VT MTD for Excel, offering more features and flexibility.
The different options for submitting a quarterly update from VT Report are given in Submit a quarterly update.
General information on MTD for Income Tax
General information on MTD for Income Tax can be found on the MTD for Income Tax homepage.
