Deadlines
Making Tax Digital deadline
Making Tax Digital for Income Tax is being rolled out in three phases between 2026 and 2028. Here are the key dates, income thresholds, and what you need to do before your mandatory start date.
MTD ITSA mandatory start dates
£50,000+
Sole traders and landlords with total qualifying income above £50,000 (based on 2024–25 tax year income) must comply from this date.
£30,000+
The mandate extends to those with qualifying income above £30,000 (based on 2025–26 income). This catches the majority of full-time sole traders.
£20,000+
Full rollout covering income above £20,000 — this includes the majority of part-time sole traders and buy-to-let landlords with one or two properties.
What counts as qualifying income?
Qualifying income for MTD ITSA purposes is the gross (before expenses) total of:
Counts
- Self-employment income (gross turnover)
- UK rental income (gross rent received)
- Foreign property income
Does not count
- PAYE employment income
- Pension income
- Dividends
- Bank interest
- Capital gains
Important: The threshold is assessed based on your income from the previous tax year, not the current year. HMRC will notify you if you are required to comply. However, it's worth checking your own position rather than waiting.
Quarterly filing deadlines within each year
Once you are in scope for MTD, you must submit four quarterly updates per year. Each update is due one month and seven days after the quarter ends:
| Quarter | Period | Deadline |
|---|---|---|
| Q1 | 6 Apr – 5 Jul | 5 August |
| Q2 | 6 Jul – 5 Oct | 5 November |
| Q3 | 6 Oct – 5 Jan | 5 February |
| Q4 | 6 Jan – 5 Apr | 5 May |
| Final Declaration | Full tax year | 31 January (following year end) |
What happens if you miss the MTD deadline?
Missing quarterly updates or the Final Declaration deadline can result in late filing penalties. HMRC is introducing a new points-based penalty system for MTD:
- Each missed quarterly update adds a penalty point
- When you reach a threshold of points, a £200 fixed penalty is charged
- Late payment interest accrues on any outstanding tax
- Persistent non-compliance can trigger HMRC compliance checks
The best way to avoid penalties is to get your software in place before your mandatory start date and submit each quarter on time.
What you need to do before April 2026
Check if you're in scope
Add your 2024–25 self-employment and property income. If combined gross income exceeds £50,000, you must comply from April 2026.
Sign up for MTD ITSA with HMRC
Enrol for MTD ITSA on HMRC's website using your Government Gateway credentials. HMRC can take up to 72 hours to activate your account.
Choose MTD-compatible software
Select a tool listed on HMRC's software choices register. Make sure it supports your income types (self-employment and/or property).
Connect your software to HMRC
Authorise access via the OAuth flow in your chosen software. This links your MTD account to the software without sharing your password.
Set up digital records
Start tracking income and expenses digitally. A spreadsheet counts — if you use one, make sure your software supports bridging import.
Submit your first quarterly update
Your first Q1 deadline (6 Apr – 5 Jul 2026) falls on 5 August 2026. Have everything ready well before then.
Get ready with ArcTax
Direct HMRC API, obligation tracking, bridging CSV import, and quarterly filing for self-employment and property income — everything you need to meet the MTD deadline.
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