Sole traders and landlords now keep digital records and send HMRC four quarterly updates a year. We set it all up and send the updates for you, so all you do is keep the receipts coming.
Certified Xero partners on Victoria Road, Burgess Hill
From 6 April 2027
Income over £30,000 joins for the 2027/28 tax year, 173 days from now.
MTD for Income Tax is for sole traders and landlords who report their income through Self Assessment. Instead of one tax return a year, you keep digital records and send HMRC a summary every quarter. A final return at the year end confirms everything.
It doesn't mean you pay tax more often. The main payment deadline stays after the end of the tax year, just as it is now.
What actually changes
Each update is due on the 7th, about a month after its quarter ends. Your final return and any tax follow by 31 January.
You keep digital records of your self-employment and property income and costs. That means accounting software, or a spreadsheet with bridging software that links it to HMRC.
What we do: Set you up in Xero, or link your spreadsheet, and show you what to record.
Every quarter you send HMRC a summary of your income and costs for that period. It isn't a tax return and it isn't a payment.
What we do: Check the figures and send each update for you, before the 7th.
You or your accountant must use software that works with HMRC's system. Paper records alone aren't enough any more.
What we do: As certified Xero partners, recommend the right tool, from simple bridging software to full cloud bookkeeping.
After the year ends you finalise your figures: tax adjustments, any other income, and your final tax position. The return and any tax are due by 31 January.
What we do: Finalise your return and tell you exactly what to pay, and when.
Q1
6 April to 5 July
6 April day 1 of the tax year
Update due by 7 August 2026
You'll report more often, but these four things work exactly as they do now.
It still runs from 6 April to 5 April.
Quarterly updates are summaries. Your year-end return still confirms the tax you owe.
The main payment deadline stays 31 January after the tax year ends.
You can still have an accountant do it all for you. That's where we come in.
Think you'll be affected, or not sure? These are the sensible next steps, in order.
Add up your self-employment and property income before expenses, and check when you have to join. Use the checker at the top of this page.
Decide how you'll keep digital records:
Don't leave it until the deadline. With your software and routine in place now, your first quarterly update won't be a scramble.
Decide with your accountant who:
Still not sure? Ask us and you'll get a straight answer in plain English.
No. It's for individuals who report self-employment or property income through Self Assessment. Limited companies aren't part of it. MTD for Corporation Tax is a separate matter for the future.
You don't have to join yet. HMRC has already announced that the thresholds will come down, so it's worth getting your record keeping organised now. Good habits make the switch much easier when your turn comes.
Some people qualify for an exemption on the grounds of digital exclusion. If you think that applies to you, we'll walk you through the criteria and your options. Not everyone has to comply.
MTD brings in a points-based penalty system for late submissions. For people who join from 6 April 2026, HMRC has confirmed it won't give penalty points for late quarterly updates in the first tax year, 2026 to 2027. Penalties can still apply for a late tax return or late payment.
No. Quarterly updates are summaries of income and costs, not tax payments. The main payment deadline stays after the end of the tax year, usually 31 January.
Before your mandatory start date. You don't need to start until after you've filed your first Self Assessment return. If you're an Oval Accountants client, we'll guide you through signing up and make sure everything is set up well ahead of your deadline.
