Key insights
- MTD for Income Tax is live. On April 6, 2026, it became the law for sole traders and landlords with qualifying income over £50,000.
- It had one difficult history since its inception in 2015with several shifts and redefinitions of who/what is included. But that is now everything is history.
- The From April 6, 2027, the £30,000 threshold will apply. The From April 6, 2028, the £20,000 threshold will apply.
- No penalty points for late quarterly updates in 2026/27. From 2027/28Each missed deadline earns one point, with four resulting in a £200 fine.
That’s a legitimate question. Making Tax Digital (MTD) for income tax was initially scheduled for 2018, then 2023, then 2024 before landing in April 2026.
The good news? This pattern has now been broken and MTD is moving forward at full speed. Further cancellations or postponements are very unlikely.
The first wave is here, covering incomes over £50,000. At the time of publication, the first quarterly updates were available.
Additionally, HMRC is actively recruiting people who have not already done so themselves.
The question is no longer, “Will it happen?” The question is: “What is the date for me and am I ready for it?”
Let’s take a closer look:
Is MTD delayed in 2026/2027/2028? The short answer is…
NO.
GOV.UK confirms that you should already be using MTD for income tax if your chargeable income was over £50,000 in 2024/25, even if you haven’t registered yet You still can.
HMRC and the UK Government’s position is that MTD is now a legal requirement and that anyone who falls within the scope should check that they are logged in, their software is compatible and their update is available before the deadline.
One thing has died down and is probably fueling every rumor you’ve heard: HMRC will not apply penalty points for late quarterly updates in the 2026/27 tax year.
This is a soft landing when delayed, not a break. The obligation to digitally record and transmit updates remains.
The official and confirmed MTD deadlines from 2026 and 2027
HMRC publishes the full timeline on its website “Making Tax Digital” campaign page. and in Quarterly guidance updates on GOV.UK.
For those already in the first wave, the next dates at the time of publication are as follows.
Watch out for some pitfalls, such as deadlines falling over the weekend:
- November 7, 2026: 2nd quarterly update (from April 6th to October 5th). Falls on a Saturday.
- January 31, 2027: Your 2025/26 self-assessment statement, submitted in the usual way.
- February 7, 2027: 3rd quarterly update. Falls on a Sunday.
- April 6, 2027: The 30,000 pound wave is starting and those trapped should start keeping digital records.
- May 7, 2027: 4th quarterly update. Falls on a Friday.
- August 7, 2027: First quarterly update of 2027/28, for both those included in the £50,000 wave and those included in the £30,000 wave.
- January 31, 2028: The first MTD tax return for 2026/27, with all required tax payments due on the same day. This covers all your income sources, unlike quarterly updates which are limited to income and expenses.
A detail worth recording: three of the next four quarterly deadlines fall on a weekend, and a self-assessment and then a quarterly MTD update will occur one week apart in January/February 2027.
If you rely on an accountant, these are the busiest two weeks of the year. Therefore, make sure you tell him everything in a timely manner.
Who is affected and when?
GOV.UK’s rule is simple to state. You will need MTD for income tax if you are a sole trader or landlord registered for self-assessment and your assessable income is above the threshold for that tax year:
- Over £50,000 in 2024/25: You were supposed to start on April 6, 2026.
- Over £30,000 in 2025/26: They start on April 6, 2027.
- Over £20,000 in 2026/27: They start on April 6, 2028.
The partnerships will follow on a date not yet specified by HMRC. You can check your own position with HMRC’s online tool.
MTD already covers VAT and is currently being expanded to cover income tax: sole traders and landlords with incomes over £50,000 will join from April 2026, over £30,000 from April 2027 and over £20,000 from April 2028.
Furthermore, HMRC has withdrawn. Its July 2025 transformation roadmap states: “HMRC does not intend to introduce MTD for corporation tax.”
Therefore, limited companies continue to file annual tax returns as before.
HMRC is still exploring digitalisation for sole traders under £20,000 and aims to be “digital-first” by 2030 through pre-filled tax returns, AI tools and possible e-invoicing.
6 lesser-known MTD details that people notice
1. It’s about sales, not profits
The most frequently asked question in the first quarter was still “Does this apply to me?”, with most people confusing profit with sales and not being sure which sources of income count.
Eligible income is the gross income from self-employment and assets combined. A side business and a rental apartment can put you in trouble together, even if neither works alone.
2. No letter does not mean there is no obligation
HMRC will write to people it believes are in scope, but HMRC specifically states that if you do not receive a letter it is still your responsibility to check and register if necessary.
3. The 20,000-pound wave is a completely different animal
The smallest cohort often has easier accounts but a more difficult path: lower software adoption, more “once a year in a shoebox” habits, more mixed-income landlords, and far more people without an accountant to act as a translator.
If you’re making around £20,000 from a trade or rental, the honest truth is that you’ve probably never taken accounting seriously.
From April 2028 you must do this. Start now and make your life easier.
4. Preparing and putting down are different moments
Many people signed up and plugged in their software weeks early and then waited until the last few days to send the update. The deadline created its own climax.
Make it a habit to send the update right after the end of the quarter.
5. Updates are cumulative, so errors should correct themselves
Each update extends from April 6th through the end of the period.
This means that you can correct any incorrect data and the correction will automatically be included in the next update. You don’t have to explicitly label anything as a bug.
6. Zero updates still count
If you had no income or expenses in a period, you still need to send the update.
Final thoughts
MTD for income tax is not delayed and it is unlikely that it will be from this point onwards.
The people who had the smoothest first quarter were out of luck. They had introduced the software early, had the accounting run weekly and set internal deadlines before the legal deadlines.
The year 2026/27 is the best year ever to learn the rhythm, because there are no penalty points for being late. It will be like this from 2027/28.
Conclusion: Check your sales for 2025/26 now. If the amount is over £30,000, your start date is April 6, 2027 and your first deadline is August 7, 2027. If the amount is over £20,000, you have until April 2028, but the habits take longer to create than the software.
Frequently asked questions about MTD delays and postponements
Has MTD been delayed again for income tax in 2026?
No. It became operational on 6 April 2026 for eligible income over £50,000 and the deadline for the first quarterly update has already passed.
Will the £30,000 threshold be delayed?
GOV.UK currently gives 6 April 2027 for eligible income over £30,000 in 2025/26 and no changes have been announced.
Does MTD change if I pay taxes?
No. Your tax return and payment are due by January 31 after the end of the tax year; for 2026/27 this is 31 January 2028. The same applies to any deposits required by HMRC, which are also due on 31 July.
Does MTD apply to corporate tax?
No. HMRC originally planned for this to be the case, but has since permanently canceled this project.
While corporate tax accounting and filing may become digitalized in a different way in the future, it is currently still based on maintaining proper accounting records and filing a corporate tax return – just as it has been for decades.
Does MTD apply to taxes such as inheritance tax or capital gains?
No. Making Tax Digital (MTD) for income tax applies to qualified self-employment income and assets. HMRC confirms that other sources of income such as employment, pensions and dividends will not count towards qualifying income thresholds, although they may still need to be included in the taxpayer’s entire digital tax return on January 31st.
Capital Gains Tax (CGT) is reported via separate HMRC digital services or self-assessment, rather than MTD’s quarterly updates. Gains from residential property in the UK must generally be reported and any capital gains tax due must be paid within 60 days of completion. Other taxable gains can be reported using HMRC’s real-time CGT service by 31 December of the tax year following the disposal, with payment due by 31 January, or by self-assessment. If a taxpayer uses MTD for income tax, other taxable income and gains must still be included in the annual digital tax return, usually by January 31st.
Inheritance tax is digitized separately. HMRC’s Transformation Roadmap, updated in 2026, confirms plans to replace the existing paper-based process with an end-to-end digital service from the 2027/28 tax year.
Will quarterly MTD updates be delayed, postponed or canceled?
The simple but complete answer is: No! A list of deadlines can be found in the body of this article.
Will the MTD for Digital Income Tax Return be delayed, postponed or cancelled?
No. You should submit this via your MTD-enabled software by January 31st. Remember that while HMRC will not impose penalties if you miss a quarterly MTD deadline in the first year of MTD for income tax (2026/27), this does not extend to the tax return deadline – they are likely to impose penalties if you miss this!
