Making Tax Digital deadlines and mandatory dates

Making Tax Digital is meant to make things easier, but all the deadlines and dates might be giving you a lot to think about. Don’t fret, however: in this guide we’ll look at the MTD for VAT and MTD for IT deadlines and mandatory dates based on your business type and income. That means you can remain compliant, avoid any penalties, and enjoy all the benefits MTD brings.

Read on and get ahead of your MTD deadlines with QuickBooks.

MTD deadlines: in summary

• Making Tax Digital for Income Tax (MTD for IT) is being introduced in stages, starting from April 2026 for those with a qualifying income of more than £50,000, followed by those with more than £30,000 of qualifying income in April 2027, and over £20,000 in April 2028.

• Individuals and businesses that MTD for IT applies to must keep digital records of their income and expenses and submit quarterly updates via HMRC-recognised MTD-compatible software, alongside an annual year-end tax submission.

• MTD for VAT has been mandatory for all VAT-registered businesses as of April 2022. This also requires keeping digital records of transactions and using compatible software for submissions.

• Any businesses, sole traders, or landlords that fail to meet MTD deadlines or requirements may incur penalties, including a points-based system for late submissions and charges for late payments. In the first year (2026-27), there is a grace period for penalties relating to MTD for IT.

What are Making Tax Digital deadlines?

Making Tax Digital (MTD) is a government initiative designed to digitise the UK tax system and make it easier for businesses and individuals to keep records and file returns by specific dates.

It will become mandatory for certain groups over time, depending on business type and income. If you're a sole trader, landlord, or limited company, you may need to take action by future deadlines.

MTD requires you to:

• Keep digital records using MTD-compatible software

• Submit your tax returns to HMRC using a digital link, at specific deadlines

• For income tax, submit quarterly financial updates 

Your deadline for switching to digital records depends on the type of business you own and your annual qualifying income. 

Timeline of Making Tax Digital key dates

Making Tax Digital applies to both income tax and VAT, and there are some important dates to consider. Get ahead of your calendar with our timeline of the key Making Tax Digital dates, so you can determine if and when you’re responsible for submitting MTD to HMRC.

Making Tax Digital for VAT key dates

• April 2019: Making Tax Digital for VAT starts. MTD was introduced for nearly all VAT-registered businesses with a taxable turnover above £85,000 in April 2019. They must use Making Tax Digital software to keep digital records and make VAT submissions to HMRC.

• April 2021: XML submissions are discontinued. In the next step towards Making Tax Digital for VAT, HMRC closed the option to submit returns via XML from April 2021. Users who didn’t use HMRC-recognised MTD software at this stage had to log into their Business Tax Account with HMRC and enter their tax return numbers manually.

• April 2022: Making Tax Digital for VAT starts. From 1 April 2022, all VAT-registered businesses must sign up for MTD regardless of their turnover. They must also use a compatible software package that connects to HMRC systems. If more than one software package or spreadsheet is used, it must be digitally linked.

Learn more about MTD for VAT.

Making Tax Digital for Income Tax key dates

• April 2026: £50,000 Making Tax Digital for Income Tax threshold. From April 2026, self-employed workers and landlords who declare qualifying income of over £50,000 via Self-Assessment tax returns must register for Making Tax Digital for Income Tax (MTD for IT). Quarterly submissions will need to be reported for your self-employed income and/or landlord income, as well as an end-of-year return to report any other income and finalise your tax position.

• April 2027: £30,000 Making Tax Digital for Income Tax threshold. From April 2027, this also affects those with a qualifying income over £30,000.

• April 2028: £20,000 Making Tax Digital for Income Tax threshold. From April 2027, Making Tax Digital rules will apply to those with an income over £20,000.

Learn more about MTD for Income Tax.

Making Tax Digital submission deadlines

Under the Making Tax Digital for Income Tax (MTD for IT) initiative, the UK government is transitioning self-employed individuals and landlords to a digital tax reporting system. This change mandates quarterly updates and an annual year-end tax submission submitted via MTD-compatible software.

Quarterly updates

Starting from the 2026/27 tax year, if you're required to comply with MTD for IT, you'll need to submit quarterly updates to HMRC. These updates should cover your income and expenses for each quarter and are due as follows:

• 7th of August: for the period 6th of April to 5th of July

• 7th of November: for the period 6th of July to 5th of October

• 7th of February: for the period 6th of October to 5th of January

• 7th of May: for the period 6th of January to 5th of April

These deadlines apply uniformly, regardless of your accounting method. However, you can elect to align your reporting with calendar quarters, for example: 1st April – 30th June and/or 1st July – 30th September, if preferred.

Final submission

In addition to quarterly updates, you'll need to submit a final year-end submission  by 31st of January following the end of the tax year. This submission finalises your tax position and replaces the traditional Self-Assessment tax return.

Making Tax Digital penalties

With the new rules for submitting Income Tax and VAT returns, there are also a range of penalties for both late filing and late payment.

Late MTD submission penalties

With MTD for VAT, one missed deadline equals one point. Once you hit a points threshold for any given submission frequency, you receive a £200 fine, plus another £200 fine for each subsequent late submission.

• 4 points for quarterly submissions

• 5 points for monthly

• 2 for annual

With MTD for Income Tax, each late submission incurs one penalty point. Once a person reaches 4 points for quarterly submissions, 2 points for annual submissions, or 5 points for monthly submissions, they incur a £200 fine.

Late MTD payment penalties

With MTD for VAT, there are no penalties for missed payments for the first 15 days, although interest does accrue.

• Between 16 and 30 days, a 3% penalty is applied to the total outstanding VAT at day 15.

• Above 31 days late, a further 3% penalty is applied to the total outstanding tax at day 30.

• After 31 days, an additional daily fee of 10% per year is charged on the outstanding balance.

With MTD for Income Tax, the penalty system is waived for the first year MTD for IT is in place (2026-27). Once the penalty system comes into effect, there is no penalty for late payments within the first 15 days.

• Between 16 and 30 days, 3% of the outstanding tax is charged.

• Above 31 days, an additional 3% of the total plus 10% per annum is charged.

Who needs to meet Making Tax Digital deadlines?

Whether you have to meet Making Tax Digital for VAT or IT deadlines depends on your business type and earned income.

Which businesses need to meet Making Tax Digital for VAT deadlines?

• Businesses with a taxable turnover above the VAT threshold. All UK businesses with a taxable turnover above the VAT threshold (£90,000 in 2024) have been required to follow the Making Tax Digital rules since April 2019. If you’re VAT registered and aren’t already MTD-compliant, you could get a penalty from HMRC.

• VAT-registered businesses with a taxable turnover below the VAT threshold. If your taxable turnover is below the VAT threshold, you may have already signed up for VAT voluntarily. If this is the case, you have to follow the Making Tax Digital rules for your VAT return from April 2022. Making Tax Digital for VAT became law for all VAT-registered businesses from April 2022.

• Businesses that aren’t registered for VAT. If your business isn’t registered for VAT, Making Tax Digital for VAT won’t affect you yet. However, as soon as your turnover reaches more than £90,000 for any 12-month period, you must register for VAT and follow the MTD requirements. You must register within 30 days of the end of the month in which the threshold is exceeded.

Which sole traders and landlords need to meet Making Tax Digital for Income Tax deadlines?

• Self-employed and landlords with annual business or property income above £50,000. If you have an annual taxable income of more than £50,000 for the tax year 2024-25, you need to sign up to Making Tax Digital for Income Tax by 5 April 2026.

• Self-employed and landlords with annual income above £30,000. By April 2027, MTD for IT rules will also apply to self-employed businesses and landlords with annual business or property income above £30,000.

• Self-employed and landlords with annual income above £20,000. By April 2028, sole traders or people who have an annual property income above £20,000 will need to follow Making Tax Digital for Income Tax rules.

How to prepare for MTD deadlines

There are several things you can do to get in the best possible position before any Making Tax Digital deadlines apply to you.

• Register for MTD for VAT or MTD for IT, if it applies to you.

• Ensure you're using HMRC-recognised, MTD-compatible software for record-keeping and submissions.

• Start keeping digital records of all your income and expenses (MTD for IT) or transactions (MTD for VAT).

• If you have an accountant or agent, they should set up an Agent Services Account to manage submissions on your behalf.

• If using multiple software systems or spreadsheets, establish digital links between them to comply with MTD requirements.

By familiarising yourself with these deadlines and requirements, you can help to ensure a smooth transition to the MTD system and avoid potential penalties.

Need help transitioning to MTD compatible software? See how QuickBooks helps businesses around the UK make the switch. 

Benefits of meeting Making Tax Digital deadlines

By making sure you’re being compliant with any MTD rules that apply to your circumstances, you can help to:

• Get a better oversight of your financial picture

• Reduce the chance of errors with your Income Tax or VAT submissions

• Save time on administrative tasks to spend on other areas on your business

• Avoid penalties for late submission or payment

Making Tax Digital timeline FAQs

As an accountant, how do I prepare clients for MTD mandation dates? 

As an accountant, you can help your clients prepare for the Making Tax Digital mandation dates. If they’re VAT registered, they should already be MTD-compliant. If they’re self-employed or a landlord, you can help them sign up to MTD for Income Tax.

Check they have the correct software in place, create an agent services account if you haven’t already, and ensure they understand the changes needed for MTD. These include submitting quarterly income updates. You’ll need to authorise the software to interact with HMRC and enable it for MTD, which can take some time.

When does Making Tax Digital start?

If you’re VAT-registered, you should already be signed up for Making Tax Digital. If you’re self-employed or a landlord with income over £50,000, you need to be recording and submitting your tax records from April 2026 (or April 2027 for income over £30,000, and April 2028 for income over £20,000).

Is it worth moving to Making Tax Digital for Income Tax early? 

Even if you don’t meet the threshold yet, it makes sense to start complying with MTD now to avoid spending time on manual data entry and risk making mistakes. There are a range of benefits to Making Tax Digital, including having a better understanding of your business finances. You’ll also be used to the quarterly submission process for when the MTD for IT rules do apply to you.

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