MTD for VAT vs MTD for Income Tax

Last updated: 13 October 2026

In short: MTD for VAT applies to every VAT-registered business and has done since April 2022. MTD for Income Tax applies to sole traders and landlords over the qualifying income threshold from April 2026. A VAT-registered sole trader can be in both.

Side by side

  • MTD for VAT: all VAT-registered businesses, VAT returns usually quarterly
  • MTD for Income Tax: sole traders and landlords over threshold, quarterly updates plus Final Declaration
  • Both require digital records and compatible software

If you are VAT registered

You already keep digital VAT records, which puts you ahead. You will still need to send separate Income Tax quarterly updates once your income is in scope.

Frequently asked questions

Get MTD ready without the paperwork headache

Fixxa keeps every quote, invoice and payment in one digital record. 14 day free trial, no card needed.

Start 14 day free trial, no card needed