What this means for you
If you're a sole trader or landlord with combined self-employment and property income over £50,000, Making Tax Digital (MTD) for Income Tax has been compulsory since 6 April 2026. In practice, that means keeping digital business records and sending HMRC a quarterly update through compatible software, on top of — not instead of — your usual Self Assessment return.
This is a separate scheme from Making Tax Digital for VAT (if you need those rules, see our earlier article on MTD for VAT). MTD for Income Tax applies to your self-employment and property income specifically, whether or not your business is VAT-registered.
Key dates and thresholds
| Qualifying income (self-employment + property) | You need to join from |
|---|---|
| Over £50,000 | 6 April 2026 (already mandatory) |
| Over £30,000 | 6 April 2027 |
| Over £20,000 | 6 April 2028 |
Each quarterly update doesn't just cover the latest three months — it covers everything from the start of the tax year (6 April) up to the end of that update period. The standard periods and their deadlines are:
| Update period | Deadline |
|---|---|
| 6 April – 5 July | 7 August |
| 6 April – 5 October | 7 November |
| 6 April – 5 January | 7 February |
| 6 April – 5 April | 7 May (following tax year) |
If calendar-month record-keeping suits your business better, you can use the equivalent calendar quarters instead (starting 1 April), which run to the same four deadlines.
As of today, if you're in the first mandatory group, your update covering 6 April to 5 July was due by 7 August 2026. Your next one, covering 6 April to 5 October, is due by 7 November 2026.
Importantly, a quarterly update is not a tax return. It's a summary of income and expenses sent to HMRC. You still need to file your full Self Assessment return by the usual 31 January deadline, which draws together your quarterly figures into your final tax calculation.
Penalties — what's different in year one
HMRC has confirmed there are no penalties for missing a quarterly update deadline specifically during the 2026-27 tax year, while people adjust to the new process. That's a genuine easement, but it isn't a reason to ignore the deadlines altogether — you still need to get everything submitted in time to complete an accurate Self Assessment return, and separate penalties for late annual returns and late payment continue to apply as normal.
From the 2027-28 tax year onwards, a points-based penalty system applies to quarterly updates too: you get one penalty point for each missed submission deadline, and once you reach four points, a £200 fixed penalty is charged, with a further £200 for each later missed deadline. HMRC's penalties guidance explains how and when points are reset.
Late payment penalties and interest are separate from the points system and continue to apply as normal. Paying on time still matters, even where a late quarterly update carries no penalty points this year.
What you should do now
- If your qualifying self-employment and property income was over £50,000 on your 2024-25 tax return, you should already be using MTD for Income Tax.
- If you're in the £30,000–£50,000 range, expect to join from 6 April 2027, based on your 2025-26 income.
- If you're in the £20,000–£30,000 range, expect to join from 6 April 2028, based on your 2026-27 income.
- Put compatible digital record-keeping in place well before your first deadline, not the week before.
- Diary the remaining 2026-27 deadlines: 7 November, 7 February and 7 May.
- Don't drop your 31 January Self Assessment habit — it's still required and now finalises your MTD figures.
How ReceiptTidy helps
MTD for Income Tax depends on having complete, accurate digital records to draw each quarterly update from. ReceiptTidy isn't HMRC-recognised filing software and doesn't submit quarterly updates or tax returns on your behalf — but it does the groundwork that makes those submissions straightforward. Photograph a receipt or forward an invoice by email, and ReceiptTidy's AI reads off the supplier, date, amount and VAT, files it against the right business, and — once you've reviewed it — syncs it into your accounting software of choice: Xero, QuickBooks, FreeAgent, Sage or Zoho Books. That gives you and your accountant a clean digital trail to build each quarterly update from, instead of reconstructing three months of spending from a drawer of paper receipts.
Sources
- Deadline approaches for first Making Tax Digital quarterly update
- Send quarterly updates for Making Tax Digital for Income Tax
- Find out if and when you need to use Making Tax Digital for Income Tax
- Penalties for Making Tax Digital for Income Tax
This article is general information, not tax or legal advice. Check the latest HMRC / GOV.UK guidance or speak to an accountant about your situation.