Making Tax Digital (MTD) is changing the way sole traders and landlords report their income. With a new, digital-first approach and more regular reporting, it’s the biggest shake-up to UK tax that we’ve seen in a long time, and it’s your responsibility to stay up to date with the regulations. Luckily, you don’t have to do it alone.
Our team is staying on top of all the MTD updates and rules for our bookkeeping clients, including when it comes to key dates. From the phased eligibility plan to deadlines for reports, make sure your calendar is aligned with the MTD timeline using this handy guide.
When Does MTD Come Into Effect?
While MTD is now in effect, it’s not applicable to everyone just yet. As of April 2026, sole traders with an income of over £50,000 qualify for the new rules and should have already switched their systems to align with MTD regulations (if you earn over £50,000 and haven’t switched to MTD, speak to our team and we’ll help you get started).
For everyone else, here are the dates you need to be aware of:
- Over £30,000 – April 2027
- Over £20,000 – April 2028
If you’re not yet in the MTD income bracket, you can volunteer to switch to the new rules early. This is a smart move if you know you’ll be eligible in 2027 or 2028, giving you a little extra time to get used to the new system before it’s mandatory.
Key Deadlines Under MTD
Under HMRC, MTD carries two significant changes:
- You’ll need to use MTD-compliant software to record your income and expenses
- You’ll need to submit quarterly reports alongside an annual submission
It’s those quarterly report deadlines that you really need to be aware of to ensure compliance. If you miss a deadline, you could face penalties and fines, neither of which is ideal.
To help you get ahead of your tax tasks, here are the deadlines you need to know:
6th April
The start of the tax year in 2027 and 2028 also means the start of MTD for those who are eligible. At this point, you should switch to MTD-compliant software if you haven’t already and begin keeping digital bookkeeping records.
7th August
You’ll need to send your first quarterly report by 7th August. This will record your income and expenses between 6th April and 5th July.
7th November
Your second quarterly report is due on 7th November, and will record your income and expenses between 6th July and 5th October.
7th February
Your third quarterly report should be submitted by 7th February, and will record your income and expenses between 6th October and 5th January.
7th May
Your fourth and final quarterly report is due on 7th May, and will record your income and expenses between 6th January and 5th April, marking the end of the tax year.
31st January
Tax returns are due on 31st January the following year, which is the same as the current deadline. So, for the 2028 tax year, your final quarterly report is due on 7th May 2028, and your tax return is due on 31st January 2029.
Do note that in your first year of MTD, you’ll submit your tax return for the previous year as normal, and you don’t need to use MTD compliant software to do so.
MTD Deadline Checklist
Need a handy chart to help you stay on top of MTD deadlines? We’ve put one together for you:
| Date | MTD Event | Task |
| 6th April | New tax year. In 2027 and 2028, you might also become eligible for MTD. | Check if you’re eligible for MTD. If you are, switch to MTD-compliant record-keeping software. |
| 7th August | First quarterly report is due. | Submit your first quarterly report between 6th July and 7th August. |
| 7th November | Second quarterly report is due. | Submit your second quarterly report between 6th October and 7th November. |
| 7th February | Third quarterly report is due. | Submit your third quarterly report between 6th January and 7th February. |
| 7th May | Fourth quarterly report is due. | Submit your fourth quarterly report between 6th April and 7th May. |
| 31st January | Deadline for tax returns. | Submit your tax return using MTD-compliant software. |
Check out our MTD checklist for more helpful tips as you make the switch to digital-first bookkeeping and tax.
What is an MTD Quarterly Tax Report?
Under MTD, your quarterly reports will keep a running record of your income and expenses. They aren’t tax returns and don’t go into nearly as much detail, instead providing HMRC with a summary of your cash flow. This helps HMRC better predict your total tax bill for the year while ensuring you stay on top of your bookkeeping.
Make sure you submit your quarterly reports using MTD-compatible software.
How to Make MTD Compliance Simpler
While knowing the deadlines is a great starting point for MTD compliance, it’s far from your only obligation.
There’s no getting around the fact that MTD is adding more tax tasks for sole traders and landlords to complete, which isn’t good news when you’re busy running a business. If you’re struggling to keep deadlines in your head or don’t have time to navigate new financial software, we’re here to help.
At Angel Bookkeeping and Payroll Services, we provide comprehensive bookkeeping that aligns with MTD regulations. Our team will set you up with the right bookkeeping software, like Sage or QuickBooks (both leading names in financial tech and MTD compliant), and make sure you’re tracking your cash flow correctly from day one.
We’ll also submit your quarterly reports and make sure you’re ready for your tax return submission, taking the stress off your shoulders.
Speak to Our MTD Bookkeepers
With us by your side, switching over to MTD regulations is a breeze. To learn more about how we can help or to get a quote for your MTD bookkeeping, speak to our team today.