A common assumption is that HMRC will provide the software for Making Tax Digital, or do some of the work for you. It does neither. HMRC sets the rules, runs the systems your software connects to, and does the tax calculation, but choosing software, keeping records and sending updates on time are your responsibility, or your agent's.
What HMRC does
- Decides who is in and when. It checks the qualifying income on your Self Assessment return against the thresholds and writes to people who are over them. Since September 2026 it has also been signing people up who should be using the service for 2026/27 and have not.
- Runs the service your software talks to, including your HMRC online account, where you can see which updates are due or overdue.
- Adds information it already holds to your tax return, such as PAYE income, pensions and taxable State benefits, for you to check.
- Works out your tax. After each quarterly update you can see an estimate; the final calculation comes with your tax return.
- Publishes the rules and guidance, including a step-by-step guide, a software finder, and webinars.
- Applies penalties for late submissions and late payment, and considers appeals.
- Decides exemptions, some automatically and some on application.
What HMRC does not do
- Provide software. HMRC says it does not recommend any product; its software finder lists products that have been through its process, with free and paid options.
- Keep your records or categorise your transactions. HMRC receives only your category totals, never the individual records.
- Guarantee a letter. If you have not heard from HMRC, you still have to check whether you are in.
- Choose your update periods or accounting method. Those are set in your software.
What is left to you
- Work out your qualifying income and when you start.
- Choose software that covers all your income sources, sign up, and authorise the software.
- Keep digital records of your self-employment and property income and expenses.
- Send quarterly updates by 7 August, 7 November, 7 February and 7 May.
- Make year-end adjustments, add your other income and submit your tax return by 31 January.
- Pay any tax due on the usual dates.
If you use an accountant
You can authorise agents to act for you. Under HMRC's rules you can have one main agent, who can do almost everything you can, including submitting your tax return, and any number of supporting agents, such as a bookkeeper who sends your quarterly updates. Before submitting your tax return, your agent must share it with you and get your written confirmation that it is correct and complete. The responsibility for the figures stays with you.
Penalties and the first year
For 2026/27, HMRC does not apply penalty points for late quarterly updates, though you must send them before you can submit your tax return. A late tax return earns a point, and paying late brings late payment interest and penalties. From 2027/28, late quarterly updates earn points too, and reaching the points threshold triggers a financial penalty. See our MTD penalties guide.
Exemptions
Qualifying income of £20,000 or less is automatically exempt, as are some other groups, such as people whose 2024/25 return included the SA109 residence pages (until April 2027). You can apply for an exemption if you are digitally excluded, for example because of age, health, disability or no internet access. HMRC will not accept that you are unfamiliar with software, or have few records, as a reason. See HMRC's exemptions guidance.
Where to get help
- HMRC's guide to using Making Tax Digital for Income Tax, which covers records, updates and the tax return.
- Your software provider, for anything to do with the software. HMRC says to contact them first if something goes wrong in your software.
- HMRC's Self Assessment helpline, if you disagree that you need to use the service.
VoxaMTD is MTD-compatible software that sends quarterly updates for self-employment and UK property income and submits the tax return, directly to HMRC's live Making Tax Digital service. Filing is free. It is not yet listed on HMRC's published software finder. Start free, no card needed.
This guide is general information based on HMRC's published guidance as at 27 September 2026. It is not tax advice.