MTD for Income Tax: New Deadlines for 2026, 2027 and 2028 Explained

Making Tax Digital for Income Tax (MTD for ITSA) is HMRC’s new way for sole traders and landlords to keep records and report income using compatible software. Mandation starts in April 2026 and expands in phases. This guide covers who must join and when, what digital records mean in practice, how quarterly updates and year-end work, the main exemptions and penalties, and sensible tooling choices.

Who must join (and when)

MTD for ITSA becomes mandatory based on your qualifying income – your total self-employment plus property income before expenses as shown on Self Assessment:

• From 6 April 2026: qualifying income over £50,000(assessed from the 2024–25 return).

• From 6 April 2027: qualifying income over £30,000 (assessed from 2025–26).

• From 6 April 2028: sole traders and landlords with qualifying income over £20,000 (assessed from 2026–27).

HMRC sets this out in its collection and policy pages. If your qualifying income is £20,000 or less, you do not need to use MTD for Income Tax. HMRC will usually write to you when you’re in scope, but it’s still your responsibility to check

The deadlines you’ll follow each year

Once you’re in scope, you’ll send quarterly updates for each business or property source on fixed dates every year:

• 7 August, 7 November, 7 February, 7 May, then

• finalise and submit via software by 31 January after the tax year.

HMRC’s campaign timeline and guidance show these dates (for both standard tax-year quarters and calendar-quarter elections).

What changes day-to-day (digital records and software)

You’ll keep digital records of your income and expenses (date, amount, category) and use compatible software to (1) send quarterly updates and (2) submit your final figures after the tax year. You can use a single product (all-in-one) or spreadsheets with bridging software – but if you use multiple products they must be digitally linked (no copy/paste). HMRC’s guidance and software finder cover both options.

Exemptions (who may not have to go digital)

Some taxpayers are digitally excluded (for example, due to age, disability/health, or lack of reasonable access) and can apply for an exemption. HMRC also sets out certain automatic or temporary exemptions. If your qualifying income is £20,000 or less you are out of scope for MTD for ITSA.

Tooling: all-in-one app vs bridging (and why all-in-one often wins)

HMRC allows two compliant routes: keep records in spreadsheets and use bridging software with digital links, or use an all-in-one app that handles records, quarterly updates, and the year-end in one place. Both are acceptable, but an all-in-one setup usually means fewer moving parts: one source of truth (no version sprawl), clearer prompts ahead of the fixed deadlines, and a smoother year-end because adjustments and the final submission sit in the same workflow.

Where EasyInvoice fits: EasyInvoice is being built around HMRC’s latest rules for sole traders and landlords to keep digital records clean, make quarterly updates predictable, and reduce year-end rework – whether you start with bridging or go all-in-one.

Join the EasyInvoice Waiting List: early access and a smoother start – easyinvoice.com/mtd-for-itsa-waiting-list/.

Penalties (how the new system works)

MTD introduces a points-based model for late submissions. Miss a deadline and you get a point; reach the threshold and you receive a £200 penalty. HMRC has also confirmed a “soft-landing” for the first mandated cohort: if you’re required to use MTD from 6 April 2026, HMRC will not apply penalty points for late quarterly updates for the first tax year (2026–27) – but points can still apply for late end-of-year submissions, and late-payment penalties/interest are separate.

2026–2028 at a glance

• Scope: individuals in Self Assessment with self-employment and/or property income.

• Thresholds: £50k from Apr 2026, £30k from Apr 2027, £20k from Apr 2028 (assessed on 2026–27).

• Quarterly deadlines: 7 Aug / 7 Nov / 7 Feb / 7 May; year-end via software by 31 Jan

• Records & software: digital records required; all-in-one single product or spreadsheets + bridging with digital links.

• Exemptions:possible where you are digitally excluded or otherwise exempt; not required if your qualifying income is £20,000 or less.

• Penalties: points system; £200 penalty at threshold; first-year quarterly points paused for 2026–27 cohort.