Making Tax Digital: key dates you need to know

If you’re a sole trader or you earn cash from a property, you will soon need to use HMRC’s digital tax filing system — Making Tax Digital (MTD) — which is set to replace self-assessment. Exactly how soon depends on how much you earn.

Here, we cut through the noise and clearly set out the deadlines you need to know so you can prepare for MTD in advance and stride into the new tax year with confidence.

Key takeaways

• MTD starts from April 2026 for people earning over £50,000 from self-employment or property, and from April 2027 for those earning over £30,000

• You must send four quarterly updates each year and submit a final declaration by 31 January

• Missing deadlines can lead to penalties, so use compatible software and keep digital records early to stay compliant

When does Making Tax Digital start?

Making Tax Digital (MTD) is rolling out in phases. Your start date depends on how much you earn from self-employment or property income in a given tax year.

The three key start dates are:

• From 6 April 2026 – If your total income from self-employment and property in the 2024-25 tax year is over £50,000

• From 6 April 2027 – If your total income from self-employment and property in the 2025-26 tax year is over £30,000

• From 6 April 2028 – If your total income from self-employment and property in the 2026-27 tax year is over £20,000

HMRC bases these qualifying income thresholds on your total gross income, not your profit.

You don’t join MTD part way through a tax year. You join at the start of the following tax year after you meet the income threshold. HMRC will know when you’ve reached the threshold from your tax return.

Key deadlines you need to know

MTD replaces one annual self-assessment deadline with regular reporting windows during the year, as well as a single year-end deadline.

Once you join MTD, you must meet five deadlines each tax year:

• Four quarterly update deadlines – You must send a summary of your income and expenses every three months

• One final deadline on 31 January – You confirm your full income for the year, make any adjustments and submit your final tax return. This replaces the traditional self-assessment return

Quarterly update deadlines

Most people tend to follow standard tax-year quarters. If you do this, your deadlines stay the same each year and are as follows:

• 6 April to 5 July – Deadline 7 August

• 6 July to 5 October – Deadline 7 November

• 6 October to 5 January – Deadline 7 February

• 6 January to 5 April – Deadline 7 May

You must send each update within one month of the quarter ending.

You’re welcome to use different accounting periods if you wish to follow your own quarterly schedule, but the one-month deadline still applies.

The 31 January final deadline

By 31 January, you must file your MTD tax return and final declaration. This is similar to the self-assessment return in that you need to confirm your total income for the year, but the quarterly updates you provide throughout the year pre-populate the form, making things a bit easier.

You still pay any tax you owe, as normal, by 31 January (and 31 July if payments on account apply).

What are quarterly MTD updates?

The new quarterly updates are a simple summary of your income and expenses. You send them to HMRC every three months using compatible software.

They aren’t tax returns, so they don’t tell you how much tax you owe, and you don’t need to pay your tax bill quarterly. It’s just an opportunity for you to log your total income and total allowable expenses for the quarter.

The purpose of these quarterly updates is to keep HMRC informed about your income as you go, rather than waiting until the end of the year.

How MTD deadlines compare with traditional self-assessment

Under self-assessment, you deal with one main filing deadline each year on 31 January. You gather your records, complete one return and submit it in one go.

With MTD, you report your income and expenses four times during the tax year, with one final declaration due by 31 January. This spreads the admin across the year and saves you leaving it all to the end of the year.

The tax year still runs from 6 April to 5 April. The main tax payment deadline remains 31 January.

What happens if I miss a deadline?

If you miss an MTD deadline, HMRC can apply penalties, even if you don’t owe any tax.

MTD uses a points-based system for late submissions. Each missed quarterly update or year-end deadline adds a penalty point to your record. Once you reach the penalty threshold, which is typically four points, HMRC charges a £200 fine.

If you miss the 31 January tax payment deadline, HMRC can also charge late payment penalties and interest on the tax you owe. This applies even if you submitted your MTD updates on time.

How MTD applies if you’re just starting out

If you’ve just started working for yourself or earning income from property, you don’t join MTD straight away. Your start date depends on your total annual income from self-employment and/or property.

For example, if you started working for yourself in January 2026, HMRC looks at your income for the 2025-26 tax year. If that income goes over the MTD threshold, which in this case would be £30,000, you would join MTD from April 2027.

The same rule applies if you start renting out property. HMRC uses your total gross rental income for a full tax year to decide if and when MTD applies.

Until you earn above the income threshold and are required to use MTD, you continue to use self-assessment in the traditional way.

How to prepare

Here are five simple steps you can take now to avoid problems later:

1. Check when you join MTD Work out whether you think you’re likely to fall into the April 2026, April 2027 or April 2028 group based on your total typical income from self-employment and property.

2. Choose compatible software You must use HMRC-approved software to keep records and send updates. Spreadsheets on their own don’t meet the rules, but you can link bridging software to your spreadsheet if you wish.

3. Start keeping digital records Record your income and expenses in software as you go rather than doing everything at the end of the year.

4. Consider signing up early HMRC allows voluntary sign-up before MTD becomes mandatory. This helps you learn how the process works.

5. Speak to your accountant They can help you choose software and set up your records correctly from the start.

Common MTD mistakes to avoid

To get off on the right foot, try to avoid:

• Missing the sign-up window before your first MTD tax year

• Using software that is not MTD-compatible

• Confusing quarterly updates with tax returns

• Forgetting the 31 January final deadline

• Waiting until the last minute to send updates

You can find more detail in our guides on compatible MTD software and how to prepare for MTD here:

Making Tax Digital for sole traders: your MTD-ready prep checklist 

Making Tax Digital for landlords: your checklist to get MTD-ready