Published: 31 March 2026
Making Tax Digital for Income Tax launches on 6 April 2026 — but the deadlines do not stop there. MTD is being phased in from April 2026 through to April 2028, with quarterly updates, end-of-year declarations and threshold changes stretching across three tax years. Missing a single deadline means penalty points, and four points triggers a £200 fine.
This timeline sets out every key date from April 2026 to January 2030, so you know exactly what is due and when.
Who needs to comply and when
MTD for Income Tax applies to sole traders and landlords whose qualifying income (gross income from self-employment and/or property income combined) exceeds certain thresholds. The rollout happens in three phases:
| Phase | Start date | Qualifying income threshold |
|---|---|---|
| Phase 1 | 6 April 2026 | Over £50,000 |
| Phase 2 | 6 April 2027 | Over £30,000 |
| Phase 3 | 6 April 2028 | £20,000 or more |
Qualifying income is your gross income before any tax allowances or expenses are deducted. If your combined rental and self-employment income is £55,000, you are in Phase 1 regardless of your profit. Use our threshold checker if you are unsure.
What you need to do under MTD
Once you are within scope, you must:
- Keep digital records of all income and expenses using MTD-compatible software
- Submit quarterly updates to HMRC summarising your income and expenditure for each quarter
- File a final declaration (which replaces the traditional Self Assessment tax return) by 31 January following the end of the tax year
This is a significant change from the old system where you filed one annual self-assessment tax return. Under MTD, HMRC receives four quarterly snapshots plus a year-end reconciliation.
Phase 1 timeline: 2026/27 tax year (income over £50,000)
| Date | What happens |
|---|---|
| 6 April 2026 | MTD for Income Tax begins. Start keeping digital records. First quarter runs 6 April – 5 July 2026. |
| 7 August 2026 | Deadline for your first quarterly update (Q1: 6 Apr – 5 Jul). |
| 7 November 2026 | Deadline for second quarterly update (Q2: 6 Jul – 5 Oct). |
| 7 February 2027 | Deadline for third quarterly update (Q3: 6 Oct – 5 Jan). |
| 7 May 2027 | Deadline for fourth quarterly update (Q4: 6 Jan – 5 Apr). |
| 31 January 2028 | Deadline for your final declaration for 2026/27 — this replaces the Self Assessment return. |
If you opt for calendar quarters (1 Apr – 30 Jun, 1 Jul – 30 Sep, etc.), the same submission deadlines apply but the quarter periods shift to align with calendar months.
HMRC has confirmed a soft landing for 2026/27: no penalty points will be issued for late quarterly updates during the first year. However, the soft landing does not apply to the final declaration — a late return for 2026/27 will still attract a penalty point.
Phase 2 timeline: 2027/28 tax year (income over £30,000)
| Date | What happens |
|---|---|
| 6 April 2027 | Sole traders and landlords with qualifying income over £30,000 join MTD. Phase 1 taxpayers continue their second year of digital record keeping. |
| 7 August 2027 | Q1 quarterly update deadline for 2027/28. |
| 7 November 2027 | Q2 quarterly update deadline. |
| 31 January 2028 | Final declaration deadline for Phase 1 taxpayers (2026/27 tax year). |
| 7 February 2028 | Q3 quarterly update deadline for 2027/28. |
| 7 May 2028 | Q4 quarterly update deadline for 2027/28. |
| 31 January 2029 | Final declaration deadline for 2027/28. |
Phase 3 timeline: 2028/29 tax year (income £20,000+)
| Date | What happens |
|---|---|
| 6 April 2028 | The income threshold drops to £20,000. Significantly more sole traders and landlords join MTD. |
| 7 August 2028 | Q1 quarterly update deadline for 2028/29. |
| 7 November 2028 | Q2 quarterly update deadline. |
| 7 February 2029 | Q3 quarterly update deadline. |
| 7 May 2029 | Q4 quarterly update deadline. |
| 31 January 2030 | Final declaration deadline for 2028/29. |
For a full calendar view of every submission date through to 2030, see our MTD deadline calendar.
The penalty points system
MTD introduces a points-based penalty system for late submissions. Each missed quarterly update deadline earns one penalty point. At four points within a 24-month period, HMRC issues a £200 financial penalty. Every subsequent late submission after reaching the threshold triggers another £200 penalty.
Late payment penalties are separate. Interest accrues from the due date, with penalties starting at 2% of unpaid tax after 15 days. See our guide on managing and resetting your penalty points.
Who is exempt
Not everyone needs to comply. HMRC provides permanent exemptions and deferrals for:
- Individuals who are digitally excluded (age, disability, no internet access)
- Those with a lasting Power of Attorney where the donor lacks capacity
- Taxpayers without a National Insurance number
- Partnerships (no MTD start date announced)
- Limited companies (corporation tax is not yet within MTD scope)
How to prepare now
If you are within scope for April 2026, the time to act is now:
- Sign up for MTD — follow our step-by-step registration guide
- Choose your software — compare options in our MTD software comparison or check the HMRC-recognised list
- Decide on cash basis or accruals — cash basis is the default for most sole traders from 2024/25
- Talk to your accountant — see how accountants help with MTD
Need help meeting the MTD deadlines?
Jack Ross Chartered Accountants can handle your MTD sign-up, software setup and quarterly submissions so you never miss a deadline. Get in touch
