When Does MTD Start? The 6 April 2026 Deadline Explained
Making Tax Digital for Income Tax (MTD ITSA) begins on 6 April 2026 for sole traders and landlords with gross income over £50,000. If this affects you, your first quarterly update is due by 7 August 2026 - just four months away. Here's everything you need to know about the deadlines, thresholds, and what you must do right now.
The Key Dates: When MTD Actually Starts
MTD ITSA doesn't start with a bang on 6 April 2026. It begins quietly, and the real deadline pressure comes later:
- 6 April 2026: MTD ITSA officially begins for those with gross income over £50,000
- 7 August 2026: First quarterly update due (covering 6 April to 5 July 2026)
- 5 November 2026: Second quarterly update due
- 5 February 2027: Third quarterly update due
- 5 May 2027: Fourth quarterly update due
- 31 January 2028: Final declaration and tax return due
The 7 August deadline is crucial. Miss this, and you'll face penalties even though you've never used MTD before.
Warning: Many people think they have until January 2028 to worry about MTD. You don't. Your first quarterly update is due just four months after MTD starts.
The £50,000 Threshold: Are You In or Out?
Whether you need MTD depends entirely on your gross income from self-employment and property rental combined.
What Counts as Gross Income
Gross income means your total business income before expenses. For MTD purposes, this includes:
- All self-employment income (freelancing, consulting, trading, etc.)
- All UK property rental income
- Income from multiple businesses or properties combined
It doesn't include:
- Employment income (PAYE salary)
- Dividends from your limited company
- Interest, investments, or other non-business income
If You're Over £50,000
You must use MTD from 6 April 2026. No exceptions, no delays, no opt-outs. This means:
- Keeping digital records using compatible software
- Submitting quarterly updates through the software
- Filing your final tax return digitally
- Facing penalties if you miss any deadlines
Your gross income is measured using your 2024-25 tax year figures (6 April 2024 to 5 April 2025). HMRC will write to you if they think you need to use MTD, but don't wait for their letter.
If You're Under £50,000
You can continue filing your tax return the traditional way until April 2027. But you can also choose to start MTD early if you want to get ahead of the curve.
Starting early has advantages:
- You learn the system when there's less pressure
- Better financial oversight with quarterly reporting
- No rush to find software or get set up
The main disadvantage is cost - you'll pay for MTD software a year earlier than required.
The £30,000 Threshold from April 2027
From 6 April 2027, the threshold drops to £30,000 gross income. This brings many more people into MTD:
- Part-time freelancers with day jobs
- Small-scale landlords with 2-3 properties
- Anyone running a side business
If your gross income is between £30,000 and £50,000, you have one extra year to prepare. Use it wisely.
Note: The government has mentioned a possible £20,000 threshold for future years, but this isn't confirmed in law. Don't plan around unconfirmed changes.
What You Must Do Right Now
If MTD affects you from April 2026, time is running short. Here's your action plan:
Step 1: Check If You Need MTD
Calculate your gross income from the 2024-25 tax year. Add up all self-employment and property income before expenses. If it's over £50,000, you need MTD.
Use our free MTD checker if you're not sure about your situation.
Step 2: Choose Your Software
You need HMRC-approved software to submit quarterly updates. Your options include:
- Full MTD software: Like Xero, QuickBooks, or FreeAgent. More features but higher cost.
- Bridging software: Like AffordableMTD. Connects your existing spreadsheets or bookkeeping to HMRC.
- Free software: HMRC's own tools, though limited in features.
Most people don't need expensive full software. Bridging software handles the MTD requirements without forcing you to change how you work.
Step 3: Get Your Records Digital-Ready
Your records must be kept digitally and link to your MTD software. This doesn't mean everything needs to be automated - you can still use spreadsheets, but they must connect to your software.
Start organising your income and expense records now. Our guide to allowable expenses helps you categorise everything correctly.
Step 4: Understand the Quarterly Deadlines
MTD means quarterly reporting, not just an annual tax return. You'll submit updates by:
- 7 August (for April-July)
- 5 November (for July-October)
- 5 February (for October-January)
- 5 May (for January-April)
Each update covers a three-month period and includes your income and expenses for that quarter. See our complete deadline guide for more details.
Step 5: Test Your Setup
Don't wait until August to discover your software doesn't work or you're missing records. Set up everything now and do a practice run.
Many software providers offer free trials. Use them to make sure everything works before the first deadline hits.
What Happens If You Get It Wrong
MTD penalties are automatic and start from day one. Miss your first quarterly update by even one day, and you'll face a £200 penalty.
The penalty structure is harsh:
- Late quarterly update: £200 fixed penalty
- Very late (6+ months): Additional penalties up to £1,600
- Repeated failures: Penalties increase for each missed deadline
HMRC has said there will be some flexibility in the first year, but they haven't defined what this means. Don't rely on their understanding - get it right from the start.
Read our detailed guide to MTD penalties to understand what you're risking.
Special Considerations for Different Business Types
Sole Traders and Freelancers
If you're a sole trader, your MTD obligations are relatively straightforward. You'll report your business income and expenses quarterly, then file your final tax return as usual.
The main change is timing - you'll engage with your tax affairs four times a year instead of once.
Landlords
Property landlords face the same £50,000 threshold, but calculating gross income can be more complex with multiple properties.
You'll report rental income and allowable expenses quarterly. This includes mortgage interest, repairs, letting agent fees, and other property costs.
Our complete landlords' guide covers everything you need to know about MTD for property income.
Mixed Income (Employment + Self-Employment)
If you have a PAYE job plus self-employment or rental income, only the self-employed part goes through MTD. Your employment income continues through PAYE as normal.
But remember - the £50,000 threshold applies to your self-employed income alone, not your total earnings from all sources.
Looking Ahead: What Comes After 2026
MTD ITSA is just the beginning. HMRC's long-term plan includes:
- Lower thresholds: Bringing more people into MTD over time
- More frequent reporting: Possibly monthly updates for larger businesses
- Real-time tax calculations: HMRC calculating your tax liability as you go
The April 2027 threshold drop to £30,000 is already confirmed. Getting comfortable with MTD now puts you ahead of the curve for future changes.
Ready to Get MTD-Compliant?
Don't leave MTD preparation until the last minute. Our bridging software connects your existing records to HMRC's systems without the complexity of full accounting software.
Start Your Free TrialSummary: Time to Act
MTD ITSA starts on 6 April 2026 for anyone with gross income over £50,000 from self-employment or property rental. Your first quarterly update is due by 7 August 2026 - just four months away.
The threshold drops to £30,000 from April 2027, affecting many more people. If you're caught by either threshold, start preparing now. Choose your software, organise your records, and test your setup before the first deadline arrives.
Getting MTD wrong means automatic penalties from day one. Getting it right means better financial oversight and staying ahead of HMRC's digital future.