MTD for Income Tax: readiness checklist and deadline calendar

Am I in scope? The test in plain English

The test is gross income, not profit: your turnover from self-employment plus your gross property income, added together, as reported on the tax return two years before the start year. That two year lag means your 2024/25 return decided whether you joined in April 2026, and your 2025/26 return decides April 2027.

• Over £50,000: in scope since 6 April 2026. You should already be keeping digital records and submitting quarterly; the first 2026/27 update was due 7 August 2026.
• Over £30,000: in scope from 6 April 2027. First quarterly update due 7 August 2027.
• Over £20,000: announced for April 2028.
• Below that: normal Self Assessment continues, but re-check each year.

Exemptions exist for the digitally excluded (age, disability, remoteness, religious grounds, applied for through HMRC), and some groups such as trustees are not required to join yet. The checklist in the pack walks this as numbered questions so you get a clear yes or no.

The quarterly deadlines: 7 August, 7 November, 7 February, 7 May

Once in, you send four quarterly updates a year, each due on the 7th of the month after the quarter ends. The updates are cumulative, so each covers the tax year from 6 April to the quarter end and quietly corrects anything you fixed in an earlier quarter. Standard periods end 5 July, 5 October, 5 January and 5 April; you can elect calendar quarters (from 1 April) and keep the same deadlines.

Two things people miss. First, no tax is paid with a quarterly update; it is a summary, not a bill. Second, the year end has not gone away: the final declaration, with tax calculated and payable, is still due by 31 January after the tax year. That is five diary dates a year, and the calendar in the pack lists all of them for 2026/27 and 2027/28 with a live countdown column.

Spreadsheet plus bridging, or MTD software?

MTD does not force you into accounting software. The legal requirement is digital records and digital submission, and a spreadsheet counts as digital records provided you submit through bridging software and keep digital links: figures must flow between digital tools without being retyped.

• Keep the spreadsheet + bridging if your current spreadsheet bookkeeping genuinely works, you know where every number comes from, and you mostly want to avoid new monthly software costs. My free MTD Bridge Tool maps a spreadsheet to HMRC categories and prepares quarterly summaries, and the MTD-ready bookkeeping spreadsheet is already structured in MTD quarters.
• Move to MTD software if your records are receipts in a drawer, if several people touch the books, or if you already wanted bank feeds and invoicing anyway. The quarterly rhythm is much harder to sustain on top of chaotic records.

Either way, the real preparation is behavioural: moving from once-a-year January bookkeeping to a quarterly rhythm. Start that this year, not the week before your first deadline.

Rates and assumptions

Thresholds and dates last checked: 15 July 2026. Rates last checked: 15 July 2026 (tax year 2026/27).

Who has to use Making Tax Digital for Income Tax now?

Sole traders and landlords whose combined gross income from self-employment and property was more than £50,000 on their 2024/25 tax return joined MTD for Income Tax in April 2026. The test is gross income, meaning turnover before expenses, not profit, and it adds self-employment and property income together.

When does the £30,000 threshold start for MTD?

April 2027. If your combined gross income from self-employment and property is more than £30,000 on your 2025/26 return, you join MTD for Income Tax from 6 April 2027 and your first quarterly update will be due by 7 August 2027. The government has also announced that the over £20,000 group joins from April 2028.

What are the MTD quarterly deadlines?

7 August, 7 November, 7 February and 7 May, every year. Each quarterly update is cumulative, covering the tax year from 6 April up to the quarter end (5 July, 5 October, 5 January, 5 April). You can elect calendar quarters starting 1 April instead; the deadlines stay the same. The year-end final declaration is still due by 31 January after the tax year.

Can I use a spreadsheet for Making Tax Digital?

Yes. Spreadsheets remain legal under MTD if you submit through bridging software and keep digital links, meaning no retyping figures between digital tools. If your spreadsheet bookkeeping works, spreadsheet plus bridging is often cheaper and less disruptive than moving to full software; if your records are a shoebox, dedicated MTD software is usually the better move.

Do quarterly updates replace the tax return?

No. The four quarterly updates are summaries of income and expenses, not tax returns, and no tax is due with them. You still finalise everything in a final declaration by 31 January after the tax year, which is when tax is calculated and paid as now.

Is anyone exempt from MTD for Income Tax?

You can apply for exemption if it is not reasonably practicable for you to use digital tools, for example due to age, disability, location or religious grounds. Some groups are not required to join yet, including trustees and personal representatives, and foster carers with qualifying care income. Below the income thresholds you simply stay in normal Self Assessment.

Related tools