Making Tax Digital · Deadlines

MTD quarterly deadlines and the points system

One deadline a year is becoming five. Making Tax Digital for Income Tax means four quarterly updates plus a final declaration — and a new penalty system that punishes the chronically late.

Who's mandated, and when

MTD for Income Tax applies to sole traders and landlords based on total gross income (turnover, not profit):

April 2026

Income over £50,000

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April 2027

Income over £30,000

April 2028

Income over £20,000

The test uses your gross income from the tax return filed two years prior — so 2026 mandation was decided by your 2024–25 return. Below the threshold you can join voluntarily.

The four quarterly deadlines

Quarter	Period covered	Submit by
Q1	6 April – 5 July	5 August
Q2	6 July – 5 October	5 November
Q3	6 October – 5 January	5 February
Q4	6 January – 5 April	5 May

Each update is a summary of that quarter's income and expenses, sent from MTD-compatible software. It's cumulative and correctable — a mistake in Q1 can be fixed in Q2; nothing is final until the year-end declaration.

The final declaration

After Q4 you submit a final declaration by 31 January— the same date as the old Self Assessment deadline. This is where you confirm the year's figures, add anything outside the quarterly updates (other income, reliefs, adjustments), and the year becomes legally final. Tax payment dates don't change: 31 January, with payments on account in January and July as before.

How the penalty points work

Late quarterly updates no longer trigger instant fines. Instead, each late submission earns one penalty point. Hit 4 points and you get a £200 penalty — and another £200 for every further late submission while you stay at the threshold. Points expire after 24 months of good behaviour.

It's designed to forgive the occasional slip and punish the chronically late. One missed quarter is a warning; a habit is £200 a time.

Late payment is separate — and harsher

The points system covers late submissions. Late payment of the tax itself has its own escalating penalties: interest from day one, 3% of the unpaid tax at day 15, 3% more at day 30, then 10% a year on top while it stays unpaid. If cash flow is the problem, contact HMRC about a Time to Pay arrangement before the deadline.

Making quarters painless

1
Keep records digital as you go — under MTD this is a legal requirement, not a preference. A connected bank feed does most of it automatically.
2
Categorise little and often. Fifteen minutes a fortnight beats a grim weekend on 4 August.
3
Treat the quarterly update as a health check: it's the moment you learn your real profit and whether your tax savings are on track.
4
Put all five dates in your calendar now — 5 August, 5 November, 5 February, 5 May, and 31 January.
5
If you'll be mandated in 2027 or 2028, consider joining early — building the habit on a voluntary year beats learning under penalty.

Never meet a deadline by accident again

Get Sorted tracks your quarters, reminds you before each deadline, and submits directly to HMRC — your quarterly update becomes a review-and-tap job.

Try Get Sorted free →

HMRC sources

gov.uk — Use Making Tax Digital for Income Tax gov.uk — Penalty points and penalties

Always verify current thresholds and rates directly with HMRC or a qualified accountant.