Making Tax Digital deadlines: MTD filing and registration dates for VAT and Income Tax 2026

If you're a sole trader, freelancer or landlord wondering what MTD actually requires and when, this guide sets out every key date, explains who is affected at each stage, and walks you through how to prepare without leaving it to the last minute.

What is Making Tax Digital?

Making Tax Digital (MTD) is the UK government's programme to modernise the tax system by requiring businesses to keep digital records and file tax information electronically through compatible software. It replaces the old approach of submitting a single annual return – on paper or via HMRC's online portal – with a more frequent, digitally driven process.

For income tax, this means sole traders and landlords will submit quarterly summaries of income and expenses to HMRC throughout the year, followed by a year-end final declaration. For VAT, MTD has already been in force since 2019, requiring VAT-registered businesses to file returns through compatible software with full digital links between records and submissions.

The key point: MTD changes how and how often you report, but it does not change when you pay your tax. Income tax payments on account and VAT payment dates stay the same.

Key MTD deadlines at a glance

MTD for Income Tax: deadlines and timeline

April 2026 – the £50,000 threshold

From 6 April 2026, MTD for Income Tax Self Assessment (ITSA) becomes mandatory for individuals whose total qualifying income from self-employment and property exceeded £50,000 in the 2024/25 tax year. HMRC will base this on your Self Assessment return for that year, which was due by 31 January 2026.

"Qualifying income" means combined gross income – that is, turnover or rental receipts before deducting expenses – from all self-employment and property sources. It does not include PAYE wages, pensions, dividends or investment income. So a freelance graphic designer earning £35,000 from her trade and £18,000 in gross rental income is above the threshold at £53,000, even though neither source alone would reach £50,000.

April 2027 – the £30,000 threshold

The following April, the threshold drops to £30,000. The same logic applies: HMRC looks at your combined gross business and property income (likely from the 2025/26 return) to determine whether you're in scope. If your income fluctuates around the boundary, you will be brought into MTD once your qualifying income exceeds the threshold in a relevant tax year.

April 2028 and beyond

The threshold drops again to £20,000 from April 2028. Partnerships will be required to use MTD for Income Tax at a future date that has not yet been announced. HMRC has confirmed that it does not intend to introduce MTD for Corporation Tax, so limited companies are not in scope.

Trusts, estates, personal representatives and non-resident companies are all exempt from MTD for Income Tax. Individuals who complete the SA109 (residence and remittance basis) pages are excluded until at least April 2027.

Quarterly update deadlines

Under MTD ITSA, you submit four quarterly updates per year for each trade or property business. The standard quarterly periods follow the tax year:

You can elect to use calendar quarters instead (ending 30 June, 30 September, 31 December, 31 March), with the same one-month-and-two-days reporting window after each quarter end. This can simplify things if your accounting software already works to calendar months, or if you want your MTD reporting to align with your management accounts.

Each quarterly update is a summary of income and expenses for that period – not a full tax computation. You don't need to calculate tax owed at this stage; the update simply feeds cumulative figures into HMRC's systems.

End of Period Statement and final declaration

After the fourth quarterly update, you submit a final declaration by 31 January following the end of the tax year. This replaces the traditional Self Assessment return for income covered by MTD and is where you make year-end adjustments, claim allowances and reliefs, and confirm the figures are complete.

For the 2026/27 tax year – the first year of MTD ITSA for Phase 1 taxpayers – the final declaration deadline is 31 January 2028.

⚠️ Important: If you have multiple income sources (for example, a trade and a rental business), you submit separate quarterly updates for each source. However, there is only one final declaration per tax year, covering all your MTD income together. The 31 January deadline applies to everyone.

When to register for MTD ITSA

HMRC will contact individuals it believes are in scope, but it will not sign you up automatically. You need to sign up yourself through GOV.UK. The advice is straightforward: sign up as soon as possible so that you are ready before the first quarterly deadline in August 2026.

New businesses have a slightly different path. HMRC will check your turnover after you file your first Self Assessment return. If you exceed the relevant threshold, you'll be brought into MTD from the start of the third tax year of trading.

MTD for VAT: where things stand

MTD for VAT has been live for several years now and, for most businesses, is simply part of the routine. Here is a brief recap of how it unfolded:

April 2019 – MTD for VAT became mandatory for businesses with taxable turnover above £85,000. These businesses were required to keep digital records and file VAT returns using compatible software.

April 2021 – The digital links requirement came into full force. This means the entire chain from transaction records to the filed VAT return must be digitally connected. Copy-and-paste between spreadsheets is not acceptable; data must flow through automated or API-linked processes.

April 2022 – MTD for VAT extended to all VAT-registered businesses, including those voluntarily registered with turnover below the threshold.

VAT return deadlines have not changed under MTD. Returns are still typically due one calendar month and seven days after the end of the VAT period (for online filing). If you file monthly or on non-standard periods, the same statutory deadlines apply – MTD simply changes the mechanism through which you submit them.

If you have not already registered for MTD for VAT and you are VAT-registered, you should have done so by now. HMRC advises allowing at least 72 hours before your filing deadline to sign up if you do not pay by Direct Debit. If you do pay by Direct Debit, sign up at least seven working days before your first MTD submission, and not within five working days after your last non-MTD return.

Has the MTD deadline been extended?

Multiple times, yes. MTD for Income Tax was originally expected to launch in April 2018, alongside MTD for VAT. It was pushed to April 2024, then delayed again to April 2026, with the threshold raised to £50,000 for the first phase (it was originally going to capture everyone above £10,000).

The reasons were practical: the software ecosystem was not ready, HMRC's own systems needed further development, and concerns about the burden on smaller businesses and tax agents were significant. The staged approach – starting with higher earners and gradually lowering the threshold – reflects lessons learned from the MTD for VAT rollout.

At this point, the April 2026 date is firmly confirmed. The government has restated its commitment, HMRC has been writing to affected taxpayers, and the beta testing programme is well under way.

Who must comply and key thresholds

Calculating your qualifying income

The threshold test is based on gross income from self-employment and property – your turnover, not your profit. This catches some people off guard. A landlord with £55,000 in rental receipts but only £10,000 in profit after mortgage interest, repairs and management fees is still well above the £50,000 threshold.

Income types that do not count towards the threshold include PAYE employment income, pensions, dividends, savings interest and investment income.

If you receive income through the Rent a Room scheme, only the amount exceeding the £7,500 tax-free allowance is included when it's declared on your return. However, HMRC's detailed guidance on how edge cases interact with the threshold should be checked directly.

Exemptions and digital exclusion

You can apply to HMRC for an exemption from MTD if it is not reasonably practical for you to use digital tools. Grounds include age, disability, remote location or religious beliefs incompatible with electronic communications. If you already hold a digital exclusion exemption for MTD for VAT, you must still contact HMRC separately to request the same for Income Tax – it does not carry over automatically.

What you need to file and when

The annual cycle under MTD ITSA, once you are in scope, looks like this:

Throughout the year: Keep digital records of all business and property income and expenses using HMRC-compatible software (or a spreadsheet with approved bridging software).

After each quarter: Submit a quarterly update within roughly five weeks of the quarter's end, covering cumulative income and expenses.

By 31 January after the tax year: Submit the final declaration, making any year-end adjustments and confirming your figures.

Payments continue on the existing schedule – 31 January for the balancing payment and first payment on account, 31 July for the second payment on account. MTD does not introduce any new payment dates.

Digital records and digital links

Your records must be maintained digitally from the point of transaction. This doesn't necessarily mean expensive cloud accounting software – HMRC permits spreadsheets, provided they are linked to compatible software that can transmit data to HMRC. But those links must be genuinely digital. Manually retyping figures from a spreadsheet into a filing tool does not satisfy the rules.

⚠️ Important: If you currently use spreadsheets for your bookkeeping, you do not have to abandon them entirely. Bridging software connects your spreadsheet to HMRC's MTD system. But you need to set this up and test it well before your first submission deadline. Leaving it until the week before 7 August 2026 is a recipe for stress.

Penalties for missing MTD deadlines

HMRC has introduced a points-based penalty system for late submissions under MTD, replacing the old fixed-fine approach. The system is designed to be more lenient towards occasional mistakes while penalising persistent non-compliance.

How it works: Each missed submission deadline earns you one penalty point. For taxpayers with quarterly filing obligations, the penalty threshold is four points. Once you hit four points, HMRC issues a £200 penalty – and every subsequent late submission while you remain at or above the threshold incurs a further £200.

Resetting points: Points expire after two years if you stay below the threshold. If you've already hit the threshold, you need 12 consecutive months of on-time quarterly submissions (plus all previously overdue submissions received by HMRC) to reset to zero.

Soft landing for 2026/27: The Autumn Budget 2025 confirmed that late submission penalties will not apply to quarterly updates during the first year (2026/27) for those mandated to join in April 2026. This gives you a grace period to adjust. However, penalties for the final declaration and for late payment still apply from the start.

Late payment penalties are separate. From 2025/26 onwards, tax unpaid 15 days after the due date attracts a 3% penalty. At day 30, a further 3% applies. From day 31, a second penalty accrues daily at 10% per annum until the balance is cleared. Late payment interest runs from day one.

How to prepare and stay compliant

Choosing software

HMRC maintains a list of compatible software for MTD ITSA on GOV.UK. The main cloud accounting platforms (Xero, QuickBooks, FreeAgent, Sage and others) are building or have built MTD ITSA functionality. If your needs are simple, there are lower-cost options and free tools available.

When evaluating software, consider whether it supports bank feeds (which dramatically reduce manual data entry), handles both quarterly updates and the final declaration, and can manage multiple income sources if you have them. If you use a bookkeeper or accountant, check that your chosen software allows agent access.

Aligning your accounting periods

Basis period reform, which took effect from April 2024, means that all sole traders are now taxed on the tax-year basis (6 April to 5 April) regardless of their accounting year-end. This simplifies things for MTD because your quarterly periods are now standardised. If you haven't yet adjusted your processes for basis period reform, doing so before MTD ITSA begins will avoid additional confusion.

Registration and onboarding checklist

A practical timeline for those in scope from April 2026:

Now (February–March 2026): Confirm that your 2024/25 Self Assessment return has been filed and check whether your qualifying income exceeds £50,000. Select and set up your MTD-compatible software. Connect bank feeds and begin recording transactions digitally if you aren't already.

March 2026: Sign up for MTD ITSA through GOV.UK. If you use an accountant or tax agent, ensure they are authorised to act on your behalf for MTD submissions. Run a test submission if your software supports it.

7 August 2026: First quarterly update due, covering 6 April to 5 July 2026.

Common mistakes to avoid

Signing up too close to the first deadline is the most frequent problem. HMRC's systems can take several days to process your registration, and software setup often takes longer than expected.

Other pitfalls include forgetting to submit quarterly updates for each income source separately (a landlord who is also self-employed submits updates for both), overlooking the calendar-quarter election if it would suit your business better, and assuming that because no penalty points apply to quarterly updates in 2026/27, you can skip them entirely. You still must submit – HMRC simply won't penalise late quarterly filings during the soft-landing year.

MTD deadlines for specific scenarios

Landlords with jointly owned property: Each owner reports their share separately. Both must submit their own quarterly updates and final declaration by the same deadlines.

Multiple businesses or income sources: You file separate quarterly updates for each trade or property business, but a single final declaration covers everything by 31 January.

New businesses: You won't be brought into MTD immediately. HMRC assesses your qualifying income after your first Self Assessment return, and mandation typically begins from the start of the third tax year of trading.

Nil or minimal income quarters: You must still submit a quarterly update on time, even if your income was zero. A nil return is a valid submission; a missing submission earns a penalty point (once the soft-landing period ends).

What to do right now

If your qualifying income for 2024/25 exceeded £50,000, the April 2026 start date applies to you. Here is a concise action plan:

1. File your 2024/25 Self Assessment return if you haven't already – HMRC uses this to determine whether you're in scope.
2. Choose and set up MTD-compatible software – connect bank feeds, import opening balances, and familiarise yourself with the quarterly update process.
3. Sign up for MTD ITSA on GOV.UK – do this well before the first quarterly deadline of 7 August 2026.
4. Authorise your agent if you use an accountant, so they can file on your behalf.
5. Diarise every deadline – the four quarterly updates and the 31 January final declaration. Set reminders at least two weeks before each one.
6. Don't wait for HMRC to chase you – the obligation to register sits with you, not HMRC.

Sources and official guidance

Dates and rules can change. Always check the latest position on GOV.UK:

• Making Tax Digital for Income Tax – sign up and get ready
• MTD for VAT – sign up and file
• Penalties for late submission and late payment
• HMRC's MTD campaign page
• ICAEW TAXguide on MTD Income Tax

FAQ

Does MTD change how often I pay income tax, or just how often I report?

Only reporting changes. You still pay income tax on the same schedule: the balancing payment by 31 January, and payments on account by 31 January and 31 July. Quarterly updates do not trigger quarterly tax payments.

If my income drops below the threshold after I start MTD ITSA, can I leave?

Yes, but not immediately. The current regulations allow you to opt out once you have submitted the fourth quarterly update for the third successive tax year in which your income has been below the threshold.

Can I use spreadsheets to meet MTD rules?

Yes, but only with approved bridging software that digitally links your spreadsheet to HMRC's systems. You cannot simply email or upload a spreadsheet – the data must flow through a recognised digital connection.

Will MTD ITSA replace my Self Assessment tax return entirely?

For income covered by MTD (self-employment and property), the quarterly updates and final declaration replace the corresponding pages of the Self Assessment return. If you have other income types not covered by MTD, you may still need to complete elements of a Self Assessment return alongside your MTD submissions.

How do I authorise my accountant for MTD submissions?

Your agent needs to be linked to your MTD account through HMRC's agent services. You authorise them via your Government Gateway account, and they accept the authorisation through their agent services account. Set this up before your first filing deadline – it's not instant.