MTD for income tax: key dates accountants and clients need to know

Making Tax Digital for income tax doesn’t arrive with a single bang. It lands in stages, reshaping the tax year one deadline at a time.

For accountants, the dates matter because they change how clients behave. Understanding your client base is crucial to identify which clients will be affected by the new requirements. For clients, they matter because missing just one can trigger penalty points, late submissions and a lot of unnecessary anxiety. The role of the accountant is to turn this timeline into something manageable – and ideally, reassuring. Providing the best advice at an early stage helps clients prepare for the changes and ensures a smoother transition.

Proactive planning and clear communication can help build stronger relationships between accountants and their clients.

Here’s how the MTD for income tax calendar actually plays out in practice.

April 2026 – MTD for income tax officially begins

From 6 April 2026, the start date for the new regime, MTD for income tax goes live for sole traders and landlords with qualifying income over the threshold.

For MTD, total qualifying income is calculated by combining self employment and property income. Property income combined with self employment income must exceed the threshold in the previous tax year to be included. Income tax applies only to self employment and property income for MTD purposes—other income sources are not included in the threshold calculation. Corporation tax is not currently included in MTD requirements.

From this date, the new regime requires clients to:

• Keep digital records of business income and property income
• Use MTD compatible software or HMRC recognised software
• Prepare to submit quarterly updates instead of relying on a single annual tax return.

Employment income remains outside quarterly reporting, but self employment and property income move firmly into the tax digital world.

Certain individuals are exempt from MTD for income tax, including those who are digitally excluded (such as those unable to use digital technology due to age, health, disability, religious beliefs, or lack of internet access), foster carers, and those who do not have a national insurance number.

HMRC will contact affected taxpayers directly, and the new regime requires each sole trader and landlord to sign up individually. There is no automatic enrolment and no bulk sign-up option for agents.

Summer 2026 – the first quarterly update lands

The first real test of MTD for income tax arrives in August 2026.

By 7 August 2026, affected taxpayers must submit their first quarterly update, covering income and expenses from 6 April to 5 July. This is where digital records, receipts and software choices suddenly matter. Using MTD-ready accounting software and exploring different software options and software packages can ensure clients stay compliant with HMRC requirements.

Quarterly updates don’t create a tax bill. They simply report income digitally. But for many clients, this will be the first time they feel the administrative weight of MTD.

Accountants who have already helped clients adopt digitally linked records and consistent processes will feel the difference here.

Autumn and winter – the rhythm sets in

The second and third quarterly updates follow quickly:

• 7 November 2026 – second quarterly update
• 7 February 2027 – third quarterly update

By this point, MTD becomes less about learning the rules and more about habit. Clients who understand what needs to be recorded – and when – will settle into the rhythm. Those who don’t risk starting to feel left behind.

This is also when penalty points become a real risk. Late submissions, missed deadlines or incomplete records all add up.

January 2027 – the last “normal” Self Assessment deadline

31 January 2027 is a quiet but important milestone. It’s the final filing deadline for the 2025–26 self assessment tax return under the existing rules. For many sole traders and landlords, this is the last time income tax feels familiar. As they’ve seen since April, digital record keeping and quarterly updates are becoming part of everyday compliance – and this is the last of the previous filing deadlines.

May 2027 – closing out the tax year

The fourth quarterly update, due by 7 May 2027, completes the reporting cycle for the 2026–27 tax year.

At this stage, all business income and property rental figures for the year should already be with HMRC in digital form. The focus then shifts away from reporting income and towards finalising the overall tax position. This is the stage to review disallowable expenses and prepare the end of year submission (also referred to as the year end submission) to ensure all figures are accurate before the final declaration.

January 2028 – the final declaration replaces the tax return

Although quarterly reporting runs throughout the year, the familiar January deadline doesn’t disappear.

By 31 January 2028, clients must submit their final declaration for the 2026–27 tax year. This replaces the traditional self assessment return and confirms:

• Total income from all income sources
• Adjustments, reliefs and capital allowances
• The final income tax calculation.

Clients should be aware that late filing penalties may apply if the final declaration is not submitted by the deadline.

In many ways, this deadline will feel familiar – but the work feeding into it will already have happened.

Why these dates matter more than they look

MTD for income tax introduces a new reporting structure, but the bigger shift is behavioural.

Clients are no longer working towards a single filing deadline. They’re managing income, expenses and records continuously across the tax year. Accountants are no longer just preparing returns – they’re guiding clients through a rolling compliance cycle.

Understanding the dates allows firms to plan preparation time properly, reduce errors, and keep clients compliant without panic – all while strengthening relationships through clear, confident advice.

A practical next step

Staying ahead of MTD deadlines is far easier when digital records, quarterly updates and final declarations live in one place.

Capium’s MTD software is designed to support accountants through the full MTD for income tax journey – from digital record keeping and quarterly submissions to agent-led workflows and final declarations. If you want to see how it fits into your practice ahead of April 2026, explore Capium’s MTD solution here.