Making Tax Digital for Income Tax: dates, thresholds and penalties
When MTD starts for you, the four quarterly deadlines, the final tax return, and how the new penalty points and late payment penalties work.
When you need to start
| Qualifying income over | In tax year | You must use MTD from |
|---|---|---|
| £50,000 | 2024 to 2025 | 6 April 2026 |
| £30,000 | 2025 to 2026 | 6 April 2027 |
| £20,000 | 2026 to 2027 | 6 April 2028 |
Qualifying income is your total gross income from self-employment and property, before expenses. Example from HMRC: £25,000 of rent plus £27,000 of self-employment income = £52,000. For jointly owned property, only your share counts. Employment income, dividends, pensions and partnership profits do not count. HMRC checks your tax return each year and writes to you if you need to start.
Quarterly update deadlines
| Standard period (tax year) | Calendar period | Deadline |
|---|---|---|
| 6 April to 5 July | 1 April to 30 June | 7 August |
| 6 April to 5 October | 1 April to 30 September | 7 November |
| 6 April to 5 January | 1 April to 31 December | 7 February |
| 6 April to 5 April | 1 April to 31 March | 7 May (following tax year) |
Each update is cumulative from the start of the tax year, so you can correct earlier figures without resending. You can send an update any time between the end of the period and the deadline. The tax return is still due by 31 January after the end of the tax year — and that is also when you pay.
Penalties
Late submission is points-based: one point per missed deadline, and a £200 penalty once you reach 4 points. For the 2026 to 2027 tax year, HMRC will not give points for late quarterly updates — but you still need to send them before you can submit your tax return, and late tax returns still get points.
Late payment: nothing if you pay within 15 days, then a percentage of the tax owed at day 15 and day 30, plus a yearly rate from day 31 (details in the questions below).
Exemptions
Qualifying income of £20,000 or less is exempt. Other exemptions exist — for example digital exclusion, some ministers of religion, Lloyd's members, and temporary exemptions until April 2027 for some reliefs and supplementary pages. Check HMRC's exemption guidance.
Questions people ask
How do penalty points work?
You get one point for each missed deadline: each quarterly update (for tax years after 2026 to 2027) and each tax return. You only get one point per deadline, even if you send several quarterly updates late for different businesses. At 4 points you get a £200 penalty, and another £200 each time you miss a further deadline. MTD points are separate from any VAT penalty points.
Do penalty points expire?
Below the 4-point threshold, each point is removed automatically 24 months after the missed deadline. Once you reach 4 points, you need to meet two conditions to clear them: send your quarterly updates and tax return on time for 12 months, and send anything outstanding from the previous 24 months.
What happens if I pay late?
For the 2026 to 2027 tax year: no penalty up to 15 days late; 3% of the tax owed at day 15 if 16 to 30 days late; 3% at day 15 plus 3% at day 30 if 31 days or more, plus 10% a year on the outstanding amount from day 31. For 2027 to 2028 the two 3% become 4%. In your first year of the new penalties you get 30 days instead of 15 to pay or set up a payment plan.
Standard or calendar update periods?
Standard periods follow the tax year (6 April to 5 April). Calendar periods run from 1 April to 31 March and end on the last day of a month — simpler if your accounts already follow that year. The deadlines are the same either way, but you cannot change your choice for a tax year once you have sent a quarterly update.
What is the final tax return under MTD?
Your quarterly updates are only summaries. After the end of the tax year you still submit your tax return through your software, by 31 January, including your other income and gains (salary, dividends, savings…). That is when your tax is finalised and paid.
How do I sign up?
With HMRC's online service, using the Government Gateway user ID you got when you registered for Self Assessment. You must be registered for Self Assessment and have submitted a tax return in the last 2 years. You may be asked to prove your identity. An agent can sign you up instead. If MTD applies to you from 6 April 2027, you can also volunteer earlier.
Who does not need to use it?
People with qualifying income of £20,000 or less, people with an exemption (for example if you are digitally excluded, and a few automatic exemptions such as ministers of religion and Lloyd's members), and limited companies — they pay Corporation Tax, which is not part of MTD for Income Tax. Partnerships will join later, on a date HMRC has not set yet.
Sources: GOV.UK — when you need to use MTD, qualifying income, quarterly updates, penalties, sign up, exemptions. Checked 9 October 2026.