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Making Tax Digital: Did You Miss the April Start?
Written by Jo Foster © fizkes / Shutterstock.com
For many self-employed people in the UK, the arrival of Making Tax Digital for Income Tax self-assessment has felt like a major shift. The April start date has now passed, so for anyone eligible who hasn’t yet registered, chosen the software, or organised online bookkeeping, it’s understandable they might be feeling behind already.
A massive 780,000 to 800,000 sole traders and landlords are currently behind on their MTD registration, according to new data from HMRC, with roughly 90% of the first group of 864,000 yet to sign up.
The important thing to remember is that you haven’t missed the most critical deadline yet. Those with qualifying annual income of more than £50,000 are required to register, but the first quarterly submission deadline is still ahead. This gives you time to understand what’s required and put the right systems in place without panic.
Whether you’re a landlord managing rental properties, running a business independently, or simply trying to stay on top of changing tax rules, the transition doesn’t have to be overwhelming. Working with the right support and the best Making Tax Digital software can make the process significantly easier.
Understanding what changed in April
From 6th April 2026, HMRC officially introduced MTD for Income Tax for qualifying landlords and self-employed individuals earning more than £50,000. This means digital record keeping and quarterly updates submitted through compatible software is now mandatory. Traditional annual self-assessment filing is gradually being replaced by this more regular reporting system.
For many, especially those who have managed their records manually for years, the change can feel intimidating, and some have delayed looking into it, or didn’t realise they were included in the first phase.
Are you actually mandated for MTD?
HMRC decides whether you’re mandated, based on the qualifying income shown on your most recent self-assessment return before your phase begins. For the April 2026 rollout, HMRC used your 2024/25 self-assessment return. If your combined qualifying income exceeded £50,000, you fell into Phase 1.
Qualifying income includes gross turnover from self-employment and UK or foreign property income, before expenses or deductions are removed. Employment income, pensions, dividends, savings interest and capital gains don’t count towards the threshold.
The phased rollout is structured as follows: Phase 1 applies to anyone with qualifying income above £50,000. Phase 2 applies to individuals earning more than £30,000 and begins from 6th April 2027. Phase 3 applies to those earning £20,000 or more and begins on 6th April 2028.
One common misunderstanding is assuming that no letter from HMRC means exemption. This isn’t the case and the responsibility to check whether you qualify lies with you.
For many business owners and landlords worried about falling behind, working with an accountant in Cornwall can be the first step to establish whether immediate action is needed.
The first major deadline to focus on
The most important date for late starters right now is 7th August 2026. This is the deadline for the first quarterly digital update covering the period from 6th April to 5th July 2026. If you begin preparing now, there’s still enough time to organise your records and become compliant.
HMRC’s four quarterly updates each tax year are not tax returns and don’t trigger tax payments, but they are mandatory under the new MTD system. The standard quarterly deadlines are fixed throughout the year.
The second quarter runs from 6th July to 5th October, and is due by 7 November. The third quarter covers 6th October to 5 January, due by 7th February 2027. The fourth quarter runs from 6th January to 5th April, due by 7th May.
Some taxpayers may elect to use calendar quarters instead, but this choice must be made before the first submission, it can’t be changed mid-year.
MTD for sole traders and landlords with multiple income sources
The reporting requirements become slightly more detailed if you have more than one income source. For example, someone with both self-employment income and rental income will need separate quarterly updates for each category.
All UK rental properties are grouped together into one property income stream, even if multiple properties are involved. However, this property update remains separate from any self-employment submissions. This is one of the reasons many people are now seeking professional support with MTD for landlords. Keeping multiple digital records aligned throughout the year can quickly become time-consuming without the help.
Understanding HMRC’s soft landing period
One of the biggest concerns for taxpayers is penalties. Fortunately, HMRC has introduced a “soft landing” period for the first year of quarterly submissions during the 2026/27 tax year. This means no late submission penalty points will be issued for the first four quarterly updates for taxpayers entering MTD in Phase 1. This gives businesses and landlords some breathing room while they adjust to quarterly reporting.
HMRC recognises this is a substantial administrative change and has intentionally allowed a gentler transition period. However, there are important limitations to this concession. Digital record keeping is still legally required, and the quarterly submissions need to be completed.
Does this affect the Final Declaration?
One detail that often causes confusion is the overlap between old and new systems. The deadline on 31st January 2027 remains relevant, because it’s the final traditional self-assessment submission for the 2025/26 tax year. The new MTD Final Declaration then takes over from January 2028 onwards.
The Final Declaration must be submitted through compliant software, and the “soft landing” doesn’t apply to late Final Declarations. For the 2026/27 tax year, taxpayers must submit their Final Declaration by 31st January 2028.
New points-based penalty system
From 2027/28 onwards, the full points-based penalty regime begins for quarterly updates. Each late submission earns one penalty point. Once four points are reached, HMRC issues a £200 penalty. Every additional late submission after this results in another £200 charge until compliance improves.
Unlike the previous self-assessment penalty structure, this system is designed to penalise repeated non-compliance, rather than occasional mistakes. Points reset only after all outstanding submissions are brought up to date and the taxpayer maintains 12 consecutive months of on-time filing.
Late payment penalties operate separately. Tax payment dates themselves have not changed under MTD: payments are still due on 31st January and 31st July each year. Quarterly updates are purely reporting obligations and do not trigger tax payments.
Many businesses quickly discover that trying to manage quarterly submissions manually creates unnecessary stress and increases the risk of errors. This is why they are turning to digital accounting firms that can handle the administration on their behalf.
DL Accounts offers an MTD Compliance Package designed specifically for landlords and self-employed individuals to comply with HMRC regulations. The package includes full software integration through platforms such as Xero and Dext, while also managing quarterly submissions and ongoing compliance requirements.
Instead of trying to learn entirely new systems independently, you can benefit from structured support, automated record keeping and reassurance that deadlines are being managed correctly.
