DEADLINE
6 April 2026
MTD for Income Tax becomes mandatory for income over £50,000
What Happens on 6 April 2026?
From 6 April 2026, self-employed individuals and landlords with annual business or property income above £50,000 must:
- Keep digital records using MTD-compatible software
- Send quarterly updates to HMRC via their software
- Submit a final declaration instead of a Self Assessment return
The Timeline
6 April 2026
Mandatory for income over £50,000. First quarterly update due by 5 July 2026.
6 April 2027
Extended to income over £30,000. Same quarterly reporting requirements apply.
Future (TBC)
HMRC may extend to income below £30,000 and partnerships. No date confirmed yet.
What Are the Penalties?
HMRC is introducing a new points-based penalty system:
- Each late submission adds a penalty point
- At 4 points, you receive a £200 penalty — and another £200 for every subsequent late submission
- Points expire after 24 months of compliance
- Late payment penalties are charged at 2% after 15 days, rising to 4%
How to Prepare Now
- Choose MTD-compatible software — we recommend FreeAgent, Xero, or QuickBooks
- Start keeping digital records — import your existing records and begin tracking income/expenses digitally
- Register for MTD — sign up via your Government Gateway account before April 2026
- Talk to your accountant — they can help you set up and submit your first quarterly updates
Check Your MTD Status
Find out if the April 2026 deadline affects you with our free 60-second quiz.
Take the Quiz →