Making Tax Digital for Income Tax: quarterly update deadlines for sole traders and landlords

Making Tax Digital for Income Tax (MTD for ITSA) is the biggest change to Self Assessment in decades. For affected clients, one deadline a year becomes five: four quarterly updates and a final declaration. For practices, that is a fourfold increase in deadlines to track for the same client list.

Who is in, and when

MTD for Income Tax applies to sole traders and landlords whose qualifying income – gross self-employment and property income combined – exceeds:

• £50,000: from 6 April 2026
• £30,000: from 6 April 2027
• £20,000: from 6 April 2028

Qualifying income is measured on the Self Assessment return for an earlier year, so clients near a threshold need checking each year. Some people are exempt or can apply for exemption, for example where it is not reasonably practicable for them to use digital tools.

The quarterly update deadlines

Each quarterly update is due on the 7th of the month after the quarter ends. With standard quarters, which follow the tax year:

Taxpayers can instead elect for calendar quarters (ending 30 June, 30 September, 31 December and 31 March). The deadlines stay the same – 7 August, 7 November, 7 February and 7 May.

Quarterly updates are summaries of income and expenses – they are not tax returns and no tax is paid quarterly. The year is finalised with the final declaration by 31 January after the tax year, the same date as the traditional Self Assessment return.

Penalties

MTD for Income Tax uses a points-based late submission regime, similar to the one introduced for VAT. Late submissions earn points, and a financial penalty is charged once the points reach the threshold. Late payment penalties follow the newer percentage-based system. HMRC has said it will take a light-touch approach while taxpayers adjust, so check the current guidance before advising clients.

Getting clients ready

1. Identify who is in scope now, using the income on their latest return, and who will join in 2027 and 2028.
2. Agree the software each client will use, and whether they or you will keep the digital records.
3. Decide on standard or calendar quarters at the start, and record the choice.
4. Change your engagement letters and fees. Four quarterly submissions are a new service.

Tracking quarterly updates in Deadlio

In Deadlio, set a client’s MTD for Income Tax status to Mandated or Voluntary and enter the MTD start date – 6 April for standard quarters, 1 April for calendar quarters. Deadlio then works out each quarter and its due date. When an update is sent, Mark done moves the client to the next quarter.

Related guides

• Self Assessment deadlines
• VAT return deadlines
• AML client review cycle
• See it in practice: A landlord’s first MTD quarter: the update that was never sent
• All deadline guides

This guide is general information for accountancy practices and is not a substitute for checking the current rules on GOV.UK. Last reviewed October 2026.