Making Tax Digital for business,
explained.
Making Tax Digital covers different tax regimes. Which rules apply depends on your business and tax obligations. This page explains the two regimes in plain English — sourced from HMRC, not guessed at.
Work out which regime applies to your business
Keep the digital records that regime requires
Send the submissions that regime requires, using compatible software
Regulatory information, sourced from HMRC. It describes the rules, not the business types or tax workflows Quarter Day will support at launch — those will be confirmed before subscriptions open.
Making Tax Digital for VAT
VAT-registered businesses generally need to keep their VAT records digitally and submit VAT Returns using compatible software, subject to the exemptions HMRC allows. This applies whatever the business structure — sole trader, partnership or limited company — if it is VAT-registered.
HMRC guidance: Making Tax Digital for VAT ↗Making Tax Digital for Income Tax
A separate regime for individuals with qualifying income from self-employment and/or property — sole traders and landlords, in HMRC's terms. Those in scope keep digital records and send quarterly updates during the tax year, then submit their tax return after the year ends. It does not apply to limited companies, which pay Corporation Tax.
Go deeper: who it applies to and how it works →Who is in scope, and from when
For VAT, registration is the trigger. For Income Tax, HMRC is phasing people in by their qualifying income from self-employment and property, with the threshold reducing over several tax years. Check the official guidance for the thresholds and dates that apply to you.
Go deeper: what counts as qualifying income →What counts as a digital record
Individual digital records of each transaction, kept in compatible software — not a periodic total typed into a spreadsheet.
Go deeper: digital record-keeping requirements →Submissions are not interchangeable
A VAT Return, an Income Tax quarterly update and a Self Assessment tax return are three different things. Under Making Tax Digital for Income Tax, quarterly updates do not replace the year-end return.
Go deeper: quarterly updates vs. your tax return →New to Making Tax Digital?
Check which rules apply to your business — go straight to the source rather than a summary.
Quick answers, sourced properly.
What's the difference between MTD for VAT and MTD for Income Tax?
Making Tax Digital for VAT applies to VAT-registered businesses and uses VAT Returns. Making Tax Digital for Income Tax applies to individuals with qualifying self-employment or property income and uses quarterly updates during the tax year plus submission of the tax return after it ends. They are separate regimes with separate requirements, and a business can be in one, both or neither.
What counts as qualifying income under MTD for Income Tax?
Broadly, your self-employment and/or property income before expenses. HMRC's guidance sets the exact thresholds that decide whether Making Tax Digital for Income Tax applies to you and from when.
Do quarterly updates replace my tax return?
No. Under Making Tax Digital for Income Tax, quarterly updates are a separate, ongoing requirement. The year-end tax return is still a distinct final step.
Which of these will Quarter Day support?
Quarter Day is in development. The exact business types, tax workflows and HMRC submissions supported at launch will be confirmed before subscriptions open. Nothing on this page claims support for a specific regime.
General information, not tax advice. Always confirm your own situation against HMRC's guidance.
Feeling clearer? See how Quarter Day is being designed to handle supported HMRC reporting.
See how it worksWant to hear when Quarter Day is ready?
Join the waiting list for launch updates. No payment or tax details required.
No payment. No tax details. Unsubscribe at any time.
Joining the waiting list does not create a software account or commit you to a subscription. Earlier email opt-outs remain in place.
While you're here, explore how it will work or read our Making Tax Digital guide.