Is There a Making Tax Digital (MTD) Deadline? 2026/27 Guide

If you are a UK business owner, landlord, or tax professional, you might be asking: Is there a Making Tax Digital (MTD) deadline? The answer is a resounding yes. With the rollout of MTD for Income Tax Self Assessment (ITSA) in the 2026/27 tax year alongside the existing MTD for VAT regime, taxpayers face a strict schedule of new digital reporting dates.

This guide outlines exactly when you must submit your digital records to HMRC, who falls under the current thresholds, and what penalties await if you miss these critical dates.

The 2026/27 Mandation Thresholds

Before checking the deadlines, you must confirm if the rules apply to you this year. MTD for ITSA introduces a phased rollout based on your qualifying income (the combined gross income from self-employment and property).

The government mandates the following schedule:

• From 6 April 2026: MTD for ITSA is mandatory for sole traders and landlords with qualifying income over £50,000.
• From 6 April 2027: The mandate extends to those with qualifying income over £30,000.
• From 6 April 2028: The threshold drops to £20,000.

If your income exceeds the £50,000 threshold for the 2026/27 tax year, you must keep digital records and submit quarterly updates using compatible software.

MTD for Income Tax Deadlines (2026/27)

Under MTD for ITSA, you no longer submit a single annual tax return. Instead, your compatible software adds together your digital records every three months to create category totals for your income and expenses.  You then send these totals to HMRC as a quarterly update.

If your accounting period aligns with the standard tax year (6 April to 5 April), HMRC sets fixed statutory deadlines for your quarterly updates:

• Quarter 1 (6 April to 5 July): 7 August.
• Quarter 2 (6 April to 5 October): 7 November.
• Quarter 3 (6 April to 5 January): 7 February.
• Quarter 4 (6 April to 5 April): 7 May (the following tax year).

“Every 3 months, your compatible software adds together your digital records to create totals for each income and expense category. These totals are then sent to HMRC as a quarterly update.”

Immediate Action Required: Today is 7 August 2026. This marks the exact deadline for the very first Quarter 1 update under the new MTD for ITSA rules.

After you submit all four quarterly updates, you must finalise your tax position. You make any accounting adjustments (such as claiming reliefs or adding other income) and submit your Final Declaration.  The deadline to submit this Final Declaration and pay any tax due remains 31 January following the end of the tax year.

MTD for VAT Deadlines

The MTD for VAT regime continues to operate alongside the new Income Tax rules. For VAT, businesses submit returns based on their allocated VAT quarters.

When you file your VAT return and pay electronically, HMRC grants a seven-day extension beyond the standard one-month deadline.  Therefore, your MTD for VAT deadline falls one month and seven days after the end of your prescribed accounting period.

For example:

• For a VAT quarter ending 30 June 2026, the return and payment deadline is 7 August 2026.
• For a VAT quarter ending 30 September 2026, the deadline is 7 November 2026.

Missing a Deadline: Penalty Consequences

HMRC enforces both MTD regimes with strict penalty systems, but offers a crucial transitional relief for Income Tax this year.

Income Tax Penalties (The “Soft Landing”)

HMRC uses a points-based penalty system for late ITSA submissions. If you miss a quarterly update deadline, you receive a penalty point; reaching the point threshold triggers a £200 penalty.

However, HMRC recognises the difficulty of transitioning to quarterly reporting. For the 2026 to 2027 tax year, HMRC will not apply penalty points for late quarterly updates.  You still must submit these updates before you file your Final Declaration, and standard penalties continue to apply if you miss the 31 January deadline for your final return and tax payment.

VAT Penalties

For VAT periods commencing on or after 1 January 2023, late payments face penalties based on 15-day and 30-day thresholds.  HMRC charges no penalty if you pay the tax due in full before the end of the 15-day period (beginning immediately after the due date).  If the failure continues beyond 15 days, penalties escalate.

Summary Table: MTD Deadlines and Rules (2026/27)

Next steps for advisors: Ensure any self-assessment clients breaching the £50,000 threshold have authorised their MTD-compatible software and submit their first quarterly update today (7 August 2026) to establish compliant reporting habits, while monitoring VAT clients for simultaneous 7 August payment deadlines.