Making Tax Digital (MTD) for Income Tax - deadline reminders
Newsletter issue – June 2026
From April 2026, MTD for Income Tax came into force for sole traders and landlords who had gross income over £50,000 in the previous tax year. You must send quarterly updates summarising income and expenses - not full tax returns. The first quarterly update (covering April to June) is due by 7 August. The subsequent deadlines are 7 November 2026, 7 February 2027 and 7 May 2027.
This does not change the need to submit a self-assessment tax return by 31 January 2027. Tax payments are also still due on 31 January and 31 July each year, as before.
These quarterly updates must be submitted using HMRC recognised software. There are many free and paid for options available, as well as utilising an accountant to act as an agent for you. Don't forget that separate submissions must be made for each income stream, for example if you earn money from being self-employed but also receive rental income, you'll need to submit two updates.
Research shows 70% of sole traders don't understand what they need to do under the new MTD system, only 37% know about the first deadline and just 8% currently use software to manage their tax records.
Please get in touch if you need assistance in choosing the right option for you or want to check that your choice will keep you compliant with the new rules as HMRC is introducing fines for non-compliance and late submissions.