Making Tax Digital (MTD) is the biggest change to the UK tax system in a generation. Moving away from the traditional annual Self Assessment, HMRC is introducing a digital-first approach to reporting income.
As we approach April 2026, it is essential for sole traders and landlords to understand how these new requirements will impact their daily operations and annual reporting. This guide outlines the critical MTD deadlines, who is affected, and how to ensure your business remains compliant with the new HMRC regulations.
Starting in 2026, the current Self Assessment process will begin to be replaced by Making Tax Digital for Income Tax Self Assessment (MTD ITSA). This shift is designed to reduce errors and provide taxpayers with a more real-time view of their tax liabilities.
The core changes include:
Digital Record-Keeping: You must keep your business records digitally using HMRC-compatible software. Paper records will no longer be compliant.
Quarterly Updates: Instead of one annual tax return, you will send summary updates of your income and expenses to HMRC every three months.
Final Declaration: At the end of the tax year, you will submit a Final Declaration (replacing the traditional tax return) to confirm your final figures and claim any reliefs.
The transition to MTD ITSA follows a strict chronological timeline. Missing these dates could lead to penalty points under HMRC’s new compliance regime.
This is the official MTD income tax start date for individuals with qualifying income over £50,000. From this day forward, you must keep digital records for all transactions.
For the 2026/27 tax year, you are required to submit updates every quarter. These updates are due by the 7th day of the month following the end of each quarter.
| Quarter Period | Deadline | What to Submit |
| Q1: 6 April – 5 July | 7 August 2026 | Summary of income and expenses |
| Q2: 6 July – 5 October | 7 November 2026 | Summary of income and expenses |
| Q3: 6 October – 5 January | 7 February 2027 | Summary of income and expenses |
| Q4: 6 January – 5 April | 7 May 2027 | Summary of income and expenses |
End of Period Statement (EOPS): By 31 January 2028, you must complete an EOPS for each source of business or property income to finalise your taxable profit.
Final Declaration: This is the final step that replaces the old Self Assessment return. It must be submitted by 31 January 2028, pulling together all your business and non-business income (such as savings interest).
The making tax digital deadlines are being phased in based on your "qualifying income." This is your total gross income (before expenses) from self-employment and property.
Sole Traders & Landlords (£50k+): If your combined gross income from these sources exceeds £50,000 in the 2024/25 tax year, you must join MTD from 6 April 2026.
Sole Traders & Landlords (£30k+): If your income is over £30,000, your start date is 6 April 2027.
General Partnerships: HMRC has not yet confirmed the mandatory start date for most partnerships, though they are expected to join the scheme in future phases.
Note: Income from employment (PAYE), pensions, and dividends does not count toward the £50,000 threshold for MTD mandation.
The first major deadline is 6 April 2026, when digital record-keeping becomes mandatory. Following this, the first quarterly update is due by 7 August 2026.
It starts on 6 April 2026 for those earning over £50,000 and 6 April 2027 for those earning over £30,000.
HMRC is introducing a points-based penalty system. Each late submission earns you one point. Once you reach a threshold (4 points for quarterly filers), you will be charged a £200 financial penalty.
No. For the 2026/27 tax year and onwards, the Final Declaration within your MTD software replaces the traditional Self Assessment return.
You must send hmrc quarterly updates four times a year, plus one Final Declaration at the end of the year.
Only "qualifying income" counts. This includes gross receipts from all your sole trader businesses and total rental income from UK and foreign properties.
Yes. Individual landlords follow the same hmrc mtd dates as sole traders. If you are both a landlord and a sole trader, your incomes are combined to see if you meet the threshold.
Yes, but they must be used in conjunction with "bridging software" that can digitally send the data to HMRC’s systems.
You need HMRC-compatible software that supports digital record-keeping and has the functionality to submit quarterly updates via an API.
HMRC's new penalty regime is designed to be fairer, focusing on repeat offenders rather than those who make an occasional mistake.
Late Submission Points: You receive 1 point for every missed deadline. If you are filing quarterly, your threshold is 4 points. Once reached, every subsequent late filing triggers a £200 fine.
Late Payment Penalties: These are separate from submission points.
Day 16: A 2% penalty is charged on the tax you owe.
Day 31: The penalty increases to 4%.
Interest: HMRC will also charge late payment interest from the first day the payment is overdue.
Preparing early is the best way to avoid the stress of the mtd timeline 2026.
Check Your Income: Review your 2024/25 tax return. If your gross turnover was over £50,000, you are in the first wave.
Choose Your Software: Don't wait until April 2026. Look for software that offers MTD ITSA capabilities now. See our MTD software guide for recommendations.
Digitalise Your Records: Start moving away from paper receipts. Use apps to scan and store your expenses digitally.
Register Early: HMRC will open the registration service for MTD ITSA. Signing up ahead of the April deadline will give you time to test your processes.
The MTD deadlines in 2026 represent a major shift in how you interact with HMRC. By keeping digital records and submitting quarterly updates, you gain better control over your finances and avoid the "January rush" of traditional tax season.
Success under MTD comes down to two things: early preparation and the right software. Ensure you are ready for 6 April 2026 to keep your business compliant and penalty-free.
Kletta is a modern bookkeeping app designed for UK sole traders who want to stay compliant without complexity. It supports Making Tax Digital requirements by enabling digital record-keeping and structured submissions, helping users prepare for quarterly reporting and key HMRC deadlines with confidence. Kletta is built specifically for self-employed professionals who prefer a simple, automated approach to managing their business finances.