Making Tax Digital (MTD) for Income Tax becomes mandatory on 6 April 2026 for self-employed individuals and landlords with gross income over £50,000. Those earning over £30,000 must comply from 6 April 2027.
This guide provides every deadline you need to know for MTD compliance, including quarterly submission dates, payment deadlines, and the penalty system.
When MTD Becomes Mandatory
MTD for Income Tax Self Assessment (MTD ITSA) rolls out in phases based on gross income:
6 April 2026: First Wave
- Self-employed with gross income over £50,000
- Landlords with gross property income over £50,000
- Combined self-employment and property income over £50,000
According to HMRC estimates, approximately 780,000 taxpayers fall into this threshold.
6 April 2027: Second Wave
- Self-employed with gross income over £30,000
- Landlords with gross property income over £30,000
- Combined income over £30,000
This brings total MTD-affected taxpayers to approximately 1.75 million.
Future Phases
HMRC plans to extend MTD to those earning over £20,000, but no date has been confirmed.
MTD Quarterly Submission Deadlines
Under MTD, you submit four quarterly updates per tax year, plus a final declaration. Each quarterly update summarises your income and expenses for that three-month period.
Quarterly Update Calendar
| Quarter | Period Covered | Deadline | |---------|---------------|----------| | Q1 | 6 April – 5 July | 7 August | | Q2 | 6 July – 5 October | 7 November | | Q3 | 6 October – 5 January | 7 February | | Q4 | 6 January – 5 April | 7 May |
You have approximately one month after each quarter ends to submit your update to HMRC.
Final Declaration Deadline
After submitting all four quarterly updates, you must file a final declaration by 31 January following the end of the tax year. This replaces the traditional Self Assessment tax return and confirms:
- Your total income for the year
- All allowable expenses
- Any adjustments or reliefs
- Your final tax liability
First MTD Year: 2026/27 Timeline
If your gross income exceeds £50,000, here is your complete first-year MTD schedule:
| Date | Action Required | |------|-----------------| | 6 April 2026 | MTD begins—start keeping digital records | | 7 August 2026 | Submit Q1 update (6 Apr – 5 Jul) | | 7 November 2026 | Submit Q2 update (6 Jul – 5 Oct) | | 7 February 2027 | Submit Q3 update (6 Oct – 5 Jan) | | 7 May 2027 | Submit Q4 update (6 Jan – 5 Apr) | | 31 January 2028 | File final declaration and pay tax |
Payment Deadlines
MTD does not change when you pay tax—only how you report. Payment deadlines remain:
Tax Payment Schedule
| Payment | Deadline | |---------|----------| | Balance of tax owed | 31 January | | First payment on account | 31 January | | Second payment on account | 31 July |
Payments on account apply if your tax bill exceeds £1,000 and less than 80% was deducted at source through PAYE.
MTD Penalty System
HMRC uses a points-based penalty system for late MTD submissions, separate from late payment penalties.
Late Submission Penalties
| Penalty Points | Consequence | |----------------|-------------| | 1 point | Warning—no financial penalty | | 2 points | Warning—no financial penalty | | 3 points | Warning—no financial penalty | | 4 points | £200 penalty | | 5+ points | £200 per additional late submission |
For quarterly submissions (4 per year), the penalty threshold is 4 points. This means you could miss three quarterly deadlines before incurring a financial penalty—though this is not recommended.
How Points Expire
Penalty points expire after 24 months of consecutive on-time submissions. For quarterly reporting, this means 8 consecutive on-time quarterly updates.
Once you reach the penalty threshold and pay the £200 fine, you must submit 24 months of on-time updates before your points reset to zero.
Late Payment Penalties
Separate from submission penalties, late payment of tax incurs:
| Days Late | Penalty | |-----------|---------| | 1-15 days | Interest accrues | | 16-30 days | 2% of tax outstanding | | 31+ days | Additional 2% (4% total) | | 31+ days | Additional daily penalty begins |
Interest on late payments accrues from the original due date at the HMRC late payment interest rate.
Second MTD Year: 2027/28 Timeline
For those in the second wave (income £30,000-£50,000), MTD begins 6 April 2027:
| Date | Action Required | |------|-----------------| | 6 April 2027 | MTD begins—start keeping digital records | | 7 August 2027 | Submit Q1 update | | 7 November 2027 | Submit Q2 update | | 7 February 2028 | Submit Q3 update | | 7 May 2028 | Submit Q4 update | | 31 January 2029 | File final declaration and pay tax |
Key Dates Calendar: 2026-2028
| Date | Event | |------|-------| | 6 April 2026 | MTD mandatory for income over £50,000 | | 7 August 2026 | First Q1 deadline (over £50k) | | 7 November 2026 | Q2 deadline | | 7 February 2027 | Q3 deadline | | 6 April 2027 | MTD mandatory for income over £30,000 | | 7 May 2027 | Q4 deadline | | 7 August 2027 | Q1 deadline (both thresholds) | | 31 January 2028 | First final declaration deadline |
Preparing for Your First Deadline
To meet your first MTD quarterly deadline:
3 Months Before (January 2026)
- Choose MTD software—select HMRC-recognised software
- Set up your account—connect your bank via Open Banking
- Import historical data—categorise past transactions
1 Month Before (March 2026)
- Test the submission process—practice a dummy quarter
- Verify bank connections—ensure transactions import correctly
- Set up reminders—calendar alerts for each deadline
MTD Start (April 2026)
- Begin digital record-keeping—all income and expenses digitally recorded
- Categorise transactions weekly—don't let them pile up
- Review before Q1 deadline—check figures before submitting
MTD Software for Deadline Management
TaxFolio includes automatic deadline management:
- Quarterly reminders sent 14 days and 7 days before each deadline
- Progress tracking shows whether you're ready to submit
- One-click submission directly to HMRC via the MTD API
- Confirmation receipts stored for your records
Never miss a deadline with automated tracking and notifications.
Frequently Asked Questions
What if my income fluctuates around the threshold?
Your threshold is based on gross income in the preceding tax year. If your income was over £50,000 in 2024/25, you must comply with MTD from April 2026—even if income drops below £50,000 in 2025/26.
Can I submit quarterly updates early?
Yes. You can submit any time during the quarter or after it ends, as long as you meet the deadline.
Do I still file a Self Assessment return under MTD?
The final declaration replaces the traditional Self Assessment return. You file quarterly updates throughout the year, then a final declaration by 31 January.
What if I have both employment and self-employment income?
Your employed income (taxed through PAYE) is reported separately by your employer. Your MTD obligations cover only your self-employment and property income.
Get Deadline Reminders with TaxFolio
TaxFolio is HMRC-recognised MTD software with built-in deadline tracking. Connect your bank, categorise transactions with AI, and receive automatic reminders before every quarterly deadline.
Start your free 30-day trial and never miss an MTD deadline.