While the mandatory start date is April 2026 for those with a qualifying income over £50,000, preparing now can save you a huge amount of stress and make sure you're compliant when the time comes.
Find out if you're affected by MTD in our blog.
The transition doesn't happen automatically. You have to actively sign up for the MTD service and make changes to how you manage your business finances.
To help you get ahead, we’ve put together a simple, five-step checklist that takes you from checking your income to making your first quarterly submission. Following these steps will help you get tax confident for the deadline.
Step 1: Check your qualifying income and start date
The first crucial step is confirming if, and when, you’re mandated to join the MTD system.
The deadline is based on your qualifying income, which is your total gross income from self-employment and/or property before any expenses are deducted.
From April 2026: MTD for Income Tax will apply to you if your total qualifying income from self-employment and/or property is over £50k for the 2024 to 2025 tax year.
From April 2027: This will be extended to include individuals with a qualifying income over £30k.
From April 2028: The government has confirmed an extension to £20k from April 2028.
What you need to do:
Look at your last tax return: Check your total gross income for the 2024-2025 tax year. If it was over £50,000, your start date is April 2026.
Watch for a letter: HMRC will write to you if they believe you are over the threshold, but don't rely on this. Being proactive is always the best way to avoid late filing fines.
Mark your deadline: Put your mandatory start date in your calendar. Even if you’re not in the first wave, you know the change is coming.
Step 2: Choose MTD-compatible software
You’ll need to use commercial software that works with MTD for Income Tax. It can either be software that creates and stores digital records (such as Freeagent) or bridging software that connects to your existing records (such as Spreadsheets).
While it’s still possible to maintain basic spreadsheets, you’ll need compatible bridging software to ensure your data is submitted digitally in line with MTD requirements.
The requirement: MTD-compatible software must be able to keep digital records, integrate with HMRC's systems to submit quarterly updates, and produce the final declaration.
The best option: This is where Mettle's unique advantage comes in. With your Mettle business account, you get FreeAgent accounting software included for free*. FreeAgent is fully MTD-compatible, saving you the typical annual cost of accounting software.
Step 3: Open your Mettle business account
To take advantage of the free, integrated software that makes MTD compliance simple, the next step is to open a Mettle business account.
Why this matters for MTD: MTD requires digital record keeping. A dedicated business bank account simplifies this by keeping your personal and business transactions separate. There’s no need to manually filter through personal spending when it comes time for a quarterly update.
The seamless link: By using a Mettle bank account with a live feed to FreeAgent, your transactions flow into FreeAgent in near-realtime, allowing you to explain them and take your first steps towards creating the perfect digital audit trail HMRC requires.
Step 4: Connect to FreeAgent and sign up for MTD for Income Tax
Once your Mettle account is active, you need to link it to FreeAgent and officially register for the MTD for Income Tax service with HMRC.
Connect to FreeAgent
Head to the Tasks Tab: In your Mettle app, navigate to the Tasks Tab and follow the instructions to activate your free FreeAgent account.
Link your accounts: Go through the sign up process to sync your accounts. Once your FreeAgent account is connected, it will automatically sync with your Mettle transactions. Find out more on how to connect to FreeAgent in our guide.
Step 5: File your first quarterly update
The change from one annual submission to four quarterly updates is the core of MTD for Income Tax. Beginning this process now could give you confidence before the mandatory deadline.
What you need to do:
Link your FreeAgent account to HMRC: Once you have registered for MTD with HMRC, you need to connect your FreeAgent account to HMRC so that you can make MTD submissions directly from FreeAgent.
Review your transactions: Inside FreeAgent, review the transactions imported from Mettle and any other transactions you have entered, such as out-of-pocket expenses. Make sure every entry is correctly categorised (e.g., travel, software, client income) and attach copies of your receipts to keep a digital record.
File your first quarterly update: Use FreeAgent to generate your first quarterly update under MTD and send it to HMRC.
Check your tax estimate: When your quarterly update reaches HMRC, FreeAgent will use their information to give you an idea of how much tax you might have to pay at the end of the year.
Before you can file your first update, you’ll need to manually sign up with HMRC for MTD for Income Tax. Your accountant can complete this process if they are registered as your agent for income tax. You can sign up early now to be proactive and help reduce stress later down the line.
By completing these five steps, you’ll move from being confused about MTD to being a fully compliant, tax-confident business owner.
*To get FreeAgent included, you must make at least one transaction a month from your Mettle account. If you don’t make one transaction a month, or if your Mettle account is closed and you continue to use FreeAgent then the FreeAgent fees will apply. FreeAgent has optional paid-for add-ons that may be chargeable. Mettle and FreeAgent have optional paid-for features available.
Information correct as of 29 September 2025.
Disclaimer: The content of this blog is based on our understanding of the topic at the time of publication and should not be taken as professional advice. Any of the information may be subject to change. You are responsible for complying with tax law and if in doubt, should seek independent advice.
