Dates You Need to Know

MTD for ITSA
Key Deadlines

Making Tax Digital for Income Tax rolls out in three waves from April 2026. Here are every key date, quarterly filing deadline, and wave rollout date you need to know.

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MTD for ITSA Key Deadlines

Making Tax Digital for Income Tax replaces your annual Self Assessment tax return with a system of quarterly updates plus a final declaration. Miss the wrong deadline and you'll start accumulating penalty points — so knowing exactly what's due when is essential.

This page covers every deadline you need to know: when to start, when to submit each quarter, and when to file your end-of-year declaration.

When Does MTD for ITSA Apply to You?

HMRC is rolling out MTD for Income Tax in three waves, based on your total gross income from self-employment and property combined.

  • Wave 1 — April 2026: Sole traders and landlords with income over £50,000
  • Wave 2 — April 2027: Those with income over £30,000
  • Wave 3 — April 2028: Those with income over £20,000

Your income threshold is based on your gross turnover — before expenses. If you have both a sole trader business and rental income, HMRC adds them together to determine which wave you fall into.

If you're not sure which wave applies to you, check your most recent Self Assessment return. The figure HMRC uses is your total trading and property income, not your taxable profit.

The Four Quarterly Submission Deadlines

Once you're in MTD, you'll submit four updates per year — one for each quarter of the tax year. Each update reports your income and expenses for that three-month period.

The quarters run from 6 April to 5 April (the standard UK tax year), and you have one calendar month after each quarter end to submit:

  • Quarter 1: 6 April – 5 July → submit by 5 August
  • Quarter 2: 6 July – 5 October → submit by 5 November
  • Quarter 3: 6 October – 5 January → submit by 5 February
  • Quarter 4: 6 January – 5 April → submit by 5 May

These updates are cumulative estimates — you're not paying tax at this point, just reporting figures. HMRC uses them to give you an in-year tax estimate, but the final bill is settled later.

You must submit using MTD-compatible software. You cannot use HMRC's basic online portal for quarterly updates.

The End-of-Year Declaration — 31 January

After your four quarterly updates, you complete an End of Period Statement (EOPS) for each income source. This is where you confirm your final figures, make any adjustments, and claim reliefs and allowances.

You then submit a Final Declaration — the MTD equivalent of your Self Assessment return — which pulls everything together including any other income (savings, investments, employment). The deadline for this is 31 January, exactly as it is under the current system.

Any tax owed for the previous tax year is also due on 31 January. Payments on account (if applicable) remain unchanged — 31 January and 31 July.

What Happens If You Miss a Deadline

HMRC uses a points-based penalty system for late submissions under MTD. Each missed quarterly update adds one penalty point to your record.

Once you reach the threshold — 4 points for quarterly filers — you'll receive a £200 fine. Every further missed submission after that also triggers a £200 penalty, with no additional points needed.

How Points Are Cleared

Points don't stay on your record forever. Once you've reached the threshold and paid the fine, HMRC resets your points to zero — but only after a period of full compliance. For quarterly filers, that means submitting all four updates on time for two consecutive years.

Points can also expire naturally after 24 months of compliance, provided you haven't hit the penalty threshold. This is designed to be forgiving of a one-off mistake, but punishing of persistent lateness.

Late Payment Penalties

Missing a submission deadline is separate from missing a payment deadline. If you underpay tax by 31 January, HMRC charges interest from the day after the deadline, currently at base rate plus 2.5%.

A 5% surcharge applies to any tax unpaid 30 days after the deadline, with further surcharges at 6 months and 12 months. These rules are unchanged from Self Assessment — MTD doesn't alter the payment side, only the submission process.

Key Dates at a Glance — 2026/27 Tax Year

For Wave 1 taxpayers entering MTD in April 2026, here's every deadline in that first year:

  • 5 August 2026 — Q1 update due (6 Apr – 5 Jul)
  • 5 November 2026 — Q2 update due (6 Jul – 5 Oct)
  • 5 February 2027 — Q3 update due (6 Oct – 5 Jan)
  • 5 May 2027 — Q4 update due (6 Jan – 5 Apr)
  • 31 January 2028 — Final Declaration and any tax owed for 2026/27

Your last Self Assessment return (for the 2025/26 tax year) is still due on 31 January 2027 as normal. MTD begins with the 2026/27 tax year for Wave 1 — you're not doing both simultaneously.

How to Prepare Before Your Deadline

The biggest practical change under MTD is the need to keep your records updated throughout the year, not just at year-end. Quarterly submissions are much easier when your bookkeeping is already current.

  • Choose compliant software early — you cannot use a spreadsheet alone; it must connect directly to HMRC's API. See our software comparison for options across all budgets.
  • Register for MTD with HMRC — you'll need to sign up before your wave start date. HMRC will write to you, but don't wait — register through your software provider or directly via your Government Gateway account.
  • Set up a bookkeeping routine — even 30 minutes a week to log income and expenses means each quarterly submission takes minutes, not hours.
  • Check your income threshold now — if you're close to a threshold, your 2024/25 tax return figures will determine whether you're in Wave 1, 2, or 3.
  • Talk to your accountant — if you use one, they need to be authorised to submit on your behalf through MTD-compatible software.

The earlier you set up your software and establish a routine, the less stressful each quarterly deadline becomes. MTD is genuinely manageable with the right tools — the difficulty is scrambling to set it up at the last minute.

Compare the leading MTD-compatible software options — including free tiers and accountant-led solutions — on our MTD software comparison page. We've reviewed pricing, ease of use, and HMRC compatibility so you can choose with confidence before your wave deadline arrives.

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