Rated Excellent on Trustpilot - Accounting Wise

MTD: Timeline and Rollout History

Making Tax Digital Rollout History Explained

Explore the full MTD timeline. See how Making Tax Digital has rolled out from VAT to income tax and what’s coming next for UK businesses and landlords.

Build Your Own Package Accounting Packages One Off Pricing
Accounting Wise - Making Tax Digital Rollout History Explained Hero Image

Since its announcement in 2015, Making Tax Digital (MTD) has been rolled out in phases starting with VAT and expanding to include income tax and, eventually, corporation tax. Understanding the MTD timeline helps UK businesses, landlords, and accountants prepare for what’s next.

Here’s a complete history of the rollout so far, key dates, and what lies ahead.

The Beginning of Making Tax Digital

2015: MTD Announced

  • HMRC introduces Making Tax Digital as part of a long-term plan to digitise the UK tax system
  • Goal: reduce errors, improve efficiency, and give taxpayers better visibility of their obligations

Phase 1: MTD for VAT

April 2019: First Launch

  • MTD for VAT becomes mandatory for VAT-registered businesses with taxable turnover above £85,000
  • Businesses must keep digital records and submit VAT returns using MTD-compatible software

April 2022: Expansion to All VAT-Registered Businesses

  • MTD for VAT is extended to all VAT-registered businesses, regardless of turnover
  • Manual VAT submissions are no longer accepted via the old online portal

Phase 2: MTD for Income Tax (MTD for ITSA)

2021: ITSA Pilot Opens

  • HMRC begins testing MTD for Income Tax Self Assessment
  • Volunteers (sole traders and landlords) begin submitting income updates digitally

April 2026: First Wave of Mandatory MTD for ITSA

  • MTD for Income Tax becomes mandatory for sole traders and landlords earning over £50,000

April 2027: Second Wave of ITSA

  • MTD for Income Tax expands to those earning over £30,000

Taxpayers will need to submit quarterly updates, an End of Period Statement, and a Final Declaration through MTD software.

Phase 3: MTD for Corporation Tax

2021: Consultation Completed

  • HMRC consults on how MTD will apply to companies
  • Feedback suggests a phased approach with additional testing

2024–2026: Pilot and Preparations

  • A pilot programme for MTD for Corporation Tax is running with selected businesses
  • HMRC states it will not mandate MTD for Corporation Tax (JULY 2025)

Companies are encouraged to prepare by adopting digital record-keeping systems early.

Accurate. Efficient. Professional Bookkeeping Services

 Outsourced Bookkeeping Services

MTD Quick Links

What is Making Tax Digital
Do I Need to Register for Making Tax Digital?
Making Tax Digital Timeline and Rollout
How to Sign Up for Making Tax Digital
Making Tax Digital Deadlines and Dates
Making Tax Digital for VAT
MTD Income Tax (MTD for ITSA)
Making Tax Digital for Corporation Tax
Making Tax Digital Exemptions
Common MTD Mistakes and Avoiding Them
Making Tax Digital for Partnerships
Making Tax Digital for Limited Companies
Making Tax Digital for Sole Traders
Making Tax Digital for Landlords
Making Tax Digital Compliant Software
Making Tax Digital Bridging Software
How Accountants Can Help with MTD

Get 50% off our services for the first 6 months when you sign up to one of our Accounting Packages!

Accounting Wise - Making Tax Digital Timeline Overview

Making Tax Digital Timeline Quick Overview

YearMilestone
2015MTD initiative announced
2017MTD VAT pilot begins
April 2019MTD for VAT launched (businesses over threshold)
April 2022MTD for VAT extended to all VAT-registered firms
April 2026MTD for Income Tax (over £50k) begins
April 2027MTD for Income Tax (over £30k) begins
TBAMTD for Corporation Tax deferred indefinitely.

What’s Coming Next in the Making Tax Digital Rollout?

The Making Tax Digital journey is far from complete. HMRC has set out a staged approach, and the next phases are expected to include:

  • MTD for General Partnerships – Following the 2026 ITSA rollout, general partnerships are expected to join the system in later phases.
  • Enhanced Digital Integration – HMRC is continuing to develop new APIs and improve software compatibility, making it easier for businesses to connect their accounting tools directly to HMRC.
  • Expansion to Smaller Income Groups – While those earning under £30,000 are not currently required to join, HMRC has signalled the possibility of extending MTD to this group in the future.
  • Stronger Compliance and Penalties – A new points-based penalty system for late or missed digital submissions will be enforced, encouraging timely and accurate reporting.

In short: the MTD rollout is an ongoing process. Preparing now by adopting MTD-ready software and keeping digital records will help you stay ahead of future changes.

Making Tax Digital - Whats Coming Next!

Stay Ahead of the Making Tax Digital Timelines with Accounting Wise

Navigating the MTD timeline can be confusing especially as new phases roll out. That’s where we come in.

At Accounting Wise, we help:

  • VAT-registered businesses comply with current rules
  • Sole traders and landlords prepare for ITSA
  • All clients track deadlines and avoid penalties

Be Ready for the Next MTD Milestone

With Making Tax Digital expanding across the UK tax system, preparation is no longer optional. Whether you’re affected now or will be soon, we’re here to help you transition smoothly.

Get in touch for personalised MTD support and planning.

Stay Informed: Accounting News & Updates

Your trusted source for the latest tax changes, healthcare finance news, and expert advice tailored to businesses.

Accounting Wise - your quick guide to essential sole trader expenses

Quick Guide to Sole Trader Expenses

Claiming the right expenses as a sole trader can significantly reduce your tax bill, but only if you understand what HMRC allows. This quick guide breaks down the rules, highlights common allowable costs, and shows you how to stay compliant while maximising your tax efficiency.
Accounting Wise - restaurant bookkeeping tips for hospitality businesses

Restaurant Bookkeeping – Essential Tips for Food and Hospitality Businesses

Restaurant and hospitality bookkeeping isn’t just about staying organised - it’s the backbone of a profitable food business. With tight margins, complex VAT rules, fast-moving stock, and constant daily transactions, pubs, cafés, and restaurants need clear, accurate financial systems to stay compliant and protect their bottom line.
Accounting Wise - Autumn budget 2025 - what it means for your business

Autumn Budget 2025 and what it means for your business?

The Autumn Budget 2025 could bring meaningful changes for SMEs, freelancers, and company directors. While we don’t know all the details until 26 November, preparing your business now is the best defence against unexpected costs.

Making Tax Digital Timeline FAQs

0330 113 8442 Request Call Back

The rollout is HMRC’s phased introduction of digital tax reporting, starting with VAT and extending to Income Tax and Corporation Tax.

MTD for VAT began in April 2019 for businesses above the VAT threshold, later extended to all VAT-registered businesses in April 2022.

MTD for Income Tax Self Assessment (ITSA) will start in April 2026 for landlords and self-employed individuals with income over £50,000.

Yes. From April 2027, it will apply to those with income over £30,000. No date has been set for those earning under £30,000.

No yet, the government has stated in that they have no plans to roll out MTD for corporation tax.

Yes. The timeline varies depending on whether you are VAT-registered, self-employed, a landlord, or a limited company.

You may face compliance issues and penalties. Preparing early by switching to MTD-compatible software is strongly advised.

Yes. HMRC has already delayed MTD several times. While April 2026 is the current confirmed date for ITSA, future changes are possible.

It’s wise to prepare early by keeping digital records and familiarising yourself with MTD software before the deadlines.

HMRC’s website provides the latest MTD updates and confirms any changes to rollout schedules.

Switching to us for accounting services is easy

1 Choose Your Package

Select the accounting services that best suit your needs. Choose from our ready-made packages or build your own to see exactly how much you’ll be paying each month.

2 Sign up with Us

Once you’ve chosen your service level, just send over a few details using our quick sign-up form or give us a call to get started.

3 You’re ready to go

That’s it! We’ll get your accounting services set up, contact your previous accountant if needed, and begin the authorisation process with HMRC.

Build Your Own Package Accounting Packages One Off Pricing
Switching Made Simple – Try Accounting Wise Today
Formations Wise - Online Company Formation Services

Online Company Formation Services

Free company formation with our Pre-Built or Bespoke Accounting packages!

All official documents provided

Online Hub to manage your company

London Registered office Address

Your own incorporated limited company

Company Formation
Rated Excellent on Trust Pilot - Accounting Wise Logo

Get started with the right accounting solution for your business

Build Your Own PackageAccounting PackagesOne Off Pricing

Contact Us

Interested in Accounting Wise?

Request Call Back0330 113 8442

Accounting Wise is a trading style of Accounting Wise Ltd, a limited company registered in England under company number 09365202. Our registered office is: The Carriages, Station Road, Ware, SG12 9PL UK.

Content is for general information only. Always take advice.