Impact assessment

Making Tax Digital (MTD) for Income Tax — Screening Equality Impact Assessment

Published 2 April 2026

Project objectives

Making Tax Digital (MTD) for Income Tax will exploit the opportunities offered by digitalisation to make it easier for everyone to get their tax right. Errors in handling tax affairs contribute to the tax gap — the amount of tax that is due but goes unpaid. Using software to keep digital records and make regular updates has been shown to reduce the potential for error and time spent making corrections and, in turn, support business productivity.

Many other countries have already done this or have digital systems in development. Digitalising our service will benefit customers by reducing the risk of unintentional errors, saving time when submitting the end-of-year tax return, supporting wider productivity and less time managing paperwork through use of digital tools and enabling HMRC to better tailor services to customers.

Customer groups affected

The customer groups impacted by these changes are:

• sole traders
• landlords

What customers will need to do

What customers need to do as a result of the change

From 6 April 2026, some sole traders and landlords must use it, based on their total annual income from self-employment and property. Either they, or their agent if they have one, will need to use software that works with MTD to:  

• create digital records of their self-employment and property income and expenses   
• send their quarterly updates to HMRC   
• submit their tax return by 31 January the following year  

This will help them stay on top of their tax affairs and business planning, supporting them to grow their business.

How customers will access this service

MTD for Income Tax will be accessed through third‑party MTD‑compatible software. A range of free and low‑cost products are available, and customers can use the interactive Software finder tool that can be accessed on the Software choices page on GOV.UK to find suitable options.

When customers need to do this 

From April 2026, MTD for Income Tax will apply to sole traders and landlords with a qualifying income from self‑employment or property over £50,000, extending to those with qualifying income over £30,000 from April 2027 and over £20,000 from April 2028.

Assessing the impact

This screening Equality Impact Assessment (sEQIA) relates to customer groups impacted by the operational delivery of MTD for Income Tax.

We assessed the equality impacts on protected characteristic groups in line with the Equality Act and Public Sector Equality Duty; and Section 75 of the Northern Ireland Act.

There is no evidence to suggest any specific impacts on customers within the following protected characteristic groups:

• race
• sex
• gender reassignment
• sexual orientation
• pregnancy and maternity
• marriage and civil partnership
• political opinion (in Northern Ireland only)

We are committed to providing a range of support, as safeguards, to ensure that customers within those protected characteristic groups who may face difficulties are properly supported. This includes:

• providing a dedicated team of MTD advisers, available via HMRC helplines, and HMRC’s Extra Support Team for those who need additional help
• delivering support through partner organisations
• providing quick access to online help and support through the HMRC App
• providing webinars and videos for wider accessible online content
• launching the MTD campaign page, which presents clear, actionable steps in multiple formats and accessible language, and will continue to be updated as we approach each mandation date
• offering simple, easy‑to‑understand guidance on GOV.UK designed with vulnerable and unrepresented customers in mind
• providing an exemptions process for customers who genuinely cannot use MTD, allowing them to apply for an exemption

For all other protected characteristic groups (listed below), our assessment identified minor impacts:

Disability

Impact on customers

Customers with disabilities may face challenges using digital services, particularly those who rely on screen readers, assistive technology, have lower digital capability, or have limited access to suitable devices or internet connectivity. Customers with lower literacy or numeracy skills may also face additional barriers.

Mitigation

The following mitigations will help ensure disabled customers can access services fairly and meet their obligations, while reducing barriers associated with digital reporting under MTD for Income Tax, these include:

• providing a wide range of accessible commercial software options, including products designed for visual, cognitive, hearing and motor accessibility needs, all meeting recognised accessibility standards (WCAG)
• offering reasonable adjustments, including alternative formats such as Braille, Audio and Large Print, and ensure content is screen reader compatible
• maintaining a digital exemption route for customers whose disability prevents them from using digital services, including a simplified application / revalidation process for those already exempt under MTD for VAT to extend to MTD for Income Tax
• providing support through the MTD customer support team, extra support service, and accessible digital channels including apps, webinars and videos.
• ensuring GOV.UK guidance remains clear, simple and accessible, including compliance with assistive technology standards and Welsh language provision

Age

Impact on customers

Older customers are more likely to be represented in the landlord population and some may have lower digital capability or confidence using software. Customers with lower digital capability — particularly those with occupational or state pensions — may also rely more heavily on telephone contact or agent support.

Mitigation

The following mitigations help ensure customers of all ages can access the service fairly and meet their obligations under MTD for Income Tax, these include:

• providing a digital-exemption route for customers whose age or capability prevents them from using digital services, including a simplified application / revalidation process for those already exempt under MTD for VAT to extend to MTD for Income Tax
• ensuring alternative contact routes remain available, with assisted digital support, telephone help and access to extra support where appropriate
• offering clear, accessible guidance through GOV.UK, the MTD campaign page, webinars and videos to support customers preparing for MTD
• working with operational teams to ensure staff understand where additional support may be needed for older or less digitally confident users

Religion or belief

Impact on customers

Some customers from certain religious groups may be disproportionately represented in the self-employed or landlord populations. Some religions can potentially limit when or how customers can interact with HMRC services. Some religious groups follow rules related to computer use that may affect access to digital services.

Mitigation

The following mitigations help ensure customers of all religions and beliefs can access MTD fairly and meet their obligations, these include:

• providing 24/7 digital access, allowing customers to use MTD services at times compatible with their religious practices
• offering a digital-exemption route for customers whose religious beliefs prevent them from using digital services, including a simplified application / revalidation process for those already exempt under MTD for VAT to extend to MTD for Income Tax
• maintaining clear, accessible guidance through GOV.UK, the MTD campaign page and multichannel communications, helping customers understand their obligations in a way that suits their needs
• supporting customers through partner organisations, MTD’s Customer Support Team and Extra Support Team if they need help navigating online services or completing forms

People with dependants (carers)

Impact on customers

Customers with caring responsibilities may rely on others to help manage their tax affairs and may need flexible ways to access and use MTD services. Some customers acting on behalf of others may also require secure routes to support the completion of obligations.

Mitigation

The following mitigations help ensure that customers with dependants or caring responsibilities can meet their obligations, without being disadvantaged by the additional demands on their time, these include:

• allowing customers to appoint main agents or supporting agents, providing flexible options for those who need assistance with their MTD obligations
• offering 24/7 digital access enables customers and carers to manage tax tasks to self-service at times that fit around caring responsibilities
• providing a dedicated team of MTD advisers, available via HMRC helplines, can support customers who need additional help using digital services
• offering webinars and videos for accessible online guidance and learning
• maintaining a digital exemption route for customers unable to use digital services, including  a simplified application / revalidation process for those already exempt under MTD for VAT to extend to MTD for Income Tax

People who use different languages (Including Welsh Language and British Sign Language)

Impact on customers

Some customers may face language barriers when interacting with MTD for Income Tax. This includes customers who use British Sign Language (BSL), those who speak English as a second language, and customers who require services in Welsh. These barriers may affect their ability to understand guidance and complete their obligations.

Mitigation

The following mitigations help ensure customers who use different languages can access the service fairly and meet their MTD for Income Tax obligations, these include:

• providing access to translation and language services, including ‘the big word’ and the Welsh Language Unit
• working with software developers to ensure that software caters for a wide range of needs
• working with organisations such as the Royal Association for Deaf People (RAD) to codevelop support material for BSL users and those who do not use English as a first language
• ensuring guidance is written in clear, simple language, available in English and Welsh, and compatible with screen readers and other accessibility tools
• offering multi-channel communications, including  webinars and videos and other formats to help customers access information in a way that suits their needs
• offering a digital exemption route for customers unable to use digital services, including a simplified application / revalidation process for those already exempt under MTD for VAT to extend to MTD for Income Tax

Opportunities to promote equalities  

We are working with representative bodies, voluntary and community organisations, and accessibility groups to ensure MTD for Income Tax meets diverse customer needs. Through co‑design sessions, software‑industry engagement and structured stakeholder forums, we are involving organisations who represent older people, disabled customers and those needing extra help.

Our multi‑channel communications and accessible guidance including webinars and videos and the MTD campaign page, support inclusive access and help raise awareness among groups who may be less likely to engage. These activities create opportunities to promote equality by improving the accessibility of services, shaping support around customer insight, and helping all customers understand and use MTD confidently.

A full Equality Impact Assessment is not recommended.