With the mandatory deadline for Making Tax Digital for Income Tax (MTD for IT) fast approaching, self-employed individuals and landlords are preparing for quarterly updates, digital record-keeping, compatible software, and a new penalty system.
Starting April 2026, HM Revenue & Customs (HMRC) expects around 864,000 sole traders and landlords with a combined turnover in excess of £50,000 to join the MTD for IT system, followed by a further 1,077,000 in April 2027 and an additional 975,000 from April 2028.
The official rollout on 6 April 2026 marks a major shift in how income must be reported to HMRC. To help taxpayers stay compliant and avoid penalties, here’s a reminder of the specifics and the quarterly reporting deadlines – details that are essential to understand as the countdown continues.
A reminder of the specifics
The MTD for IT requirements are being rolled out in stages, depending on your overall income:
- Self-employed individuals and landlords with annual combined business or property income of more than £50,000 from 6 April 2026;
- Those with annual combined business or property income of more than £30,000 from 6 April 2027; and
- Those with annual combined business or property income of more than £20,000 from 6 April 2028.
Business partnerships will be excluded for now, but it is intended that MTD for IT will be rolled out to them in the future. HMRC have not yet issued guidance on when this will happen. HMRC have made the decision not to introduce MTD for Corporation Tax.
Preparing for MTD for IT
Your requirement to comply with MTD for Income Tax from April 2026 is determined by the level of self-employment and rental income reported on your 2024-25 Self-Assessment tax return. As such, it is important to review your 2024-25 income position as early as possible to ensure you are fully prepared.
If you are impacted by the changes, here is what you will need to do to remain compliant.
- Use Compatible Software: With 37% of individuals in the initial MTD group not using software to submit their 2023–24 end-of-year returns, many will now be seeking suitable solutions to handle quarterly reporting. Choosing HMRC-compatible software is essential for staying compliant.
- Keep Digital Records: Maintain digital records of your income and expenses using MTD-compatible software.
- Submit Quarterly Updates: Send quarterly updates of your income and expenses to HMRC through the software.
- Submit a Final Declaration: At the end of the tax year, after the 4th Quarterly submission has been sent to HMRC you will still need to make the usual accounting and tax final adjustments, declare all sources of income and finalise your tax affairs for the year by submitting a final declaration – this is similar to the current Self-Assessment process, the quarterly submissions will not replace this process.
Quarterly reporting
Quarterly updates will require businesses to submit income and expense summaries every three months, replacing the current system of a single annual return.
HMRC has now published the specifics on when quarterly updates will be due:
| Tax Year | 31/01/2026 | 05/04/2026 | 06/04/2026 | 07/08/2026 | 07/11/2026 | 31/01/2027 | 07/02/2027 | 05/04/2027 | 07/05/2027 | 31/01/2028 |
|---|---|---|---|---|---|---|---|---|---|---|
| 2024/25 | Deadline for 2025/26 self assessment tax return submission | |||||||||
| 2025/26 | Tax Year end | Deadline for 2025/26 self assessment tax return submission | ||||||||
| 2026/27 | Keep MTD Compliant records | 1st Quarterly MTD Submission | 2nd Quarterly MTD submission | 3rd Quarterly MTD submission | Tax Year end | 4th Quarterly MTD Submission | Final declaration of income 2026/27 submission deadline |
How M+A Partners can help
Should you have any queries on the introduction of MTD for IT, or need help or advice on whether you will need to register and/or what software is available, then please either get in touch with your usual M+A Partners contact or email enquiries@mapartners.co.uk and we will be happy to help.
You can also visit our dedicated MTD for IT page, which includes a helpful factsheet covering key FAQs for your convenience.
