For many sole traders and small private UK landlords, things are about to get more challenging, with the fast-approaching phased introduction of Making Tax Digital for Income Tax. This will drastically change how most sole traders and landlords are required by law to maintain records of their income and expenses, as well as report summaries to HMRC so that their tax bill can be calculated.
The introduction of MTD for Income Tax (from 6 April 2026) will mean that sole traders and landlords will have more tax-related deadlines to meet throughout the tax year (6 April to the following 5 April). And although MTD will ultimately replace Self Assessment for many UK taxpayers, there will be a brief period of cross-over.
Key to meeting any important deadline is knowing exactly when that deadline is. Created to help you avoid having to pay late-filing penalties in the near future if you’re captured by the first phase, here is a list of important tax-return filing deadlines heading your way in the next few years, relating to Self Assessment and MTD for Income Tax.
Key tax filing deadline dates 2026-2028
- 31/01/26 – 24/25 Self Assessment tax return online-filing deadline.
- 07/08/26 – Year 1 MTD for Income Tax Q1 quarterly update.
- 07/11/26 – Year 1 MTD for Income Tax Q2 quarterly update.
- 31/01/27 – 25/26 Self Assessment tax return online-filing deadline.
- 07/02/27 – Year 1 MTD for Income Tax Q3 quarterly update.
- 07/05/27 – Year 1 MTD for Income Tax Q4 quarterly update.
- 07/08/27 – Year 2 MTD for Income Tax Q1 quarterly update.
- 07/11/27 – Year 2 MTD for Income Tax Q2 quarterly update.
- 31/01/28 – Year 1 MTD for Income Tax final declaration due.
Making Tax Digital for Income Tax key facts
- The first phase of the introduction of MTD for Income Tax will start on 6 April 2026, which will affect sole traders and landlords with a gross annual trading/rental income of more than £50,000 (estimated to be about 780,000 taxpayers).
- Gross trading or gross rental income means income earned before any tax expenses are deducted.
- From 6 April 2027, sole traders or landlords with a gross annual trading/rental income of more than £30,000 will be impacted by new MTD for Income Tax rules.
- From 6 April 2028, sole traders or landlords with a gross annual trading/rental income of more than £20,000 will need to comply with new MTD for Income Tax rules.
- Once impacted, you must maintain comprehensive digital accounting records of your sole trader or landlord income and expenses.
- You’ll need to update your financial records fully before the end of every quarter, although more regular updating is recommended.
- According to the above deadlines, each quarter you must digitally report income and expense summaries to HMRC.
- You can either use MTD for Income Tax-compliant accounting software or “bridging software” that enables you to report your summary figures digitally to HMRC if you use digital spreadsheets to keep financial records.
- After your fourth quarterly update you can make tax and accounting adjustments.
- Then, using your software, you’ll need to make a final declaration to HMRC, confirming that all of the data you’ve supplied is accurate and complete.
- You’ll then find out how much tax you owe, although throughout the year the software will give you a rough idea.
How to get ready for MTD for Income Tax
- Having MTD for Income Tax-compliant software is essential. If you don’t have an accountant, you’ll need to sort this out yourself.
- If you’re already using accounting software, contact your software provider to find out whether it’s MTD for Income Tax compliant and suited to your circumstances (ie you might need to report sole trader and rental income).
- Once you get your MTD for Income Tax accounting software, it’s wise to get used to using it, but that should be simple enough. Reach out to your software provider if necessary.
- Budget permitting, you could seek support from an accountant or bookkeeper if you’re really struggling to comply with MTD for Income Tax requirements.
- Once you’ve sorted out your software, you could voluntarily sign up now for MTD for Income Tax, so you can get used to its requirements nice and early.
- You will still need to submit a 2024-2025 Self Assessment tax return. Not everyone will be able to sign up now because there are restrictions. Visit government website GOV.UK for more information.