TL;DR
- From 6 April 2026, many sole traders and landlords must submit quarterly MTD updates.
- Each update is due one month after the quarter ends.
- You must report total income and allowable expenses — not a full tax return.
- A final declaration is still required by 31 January.
- Missing deadlines triggers the points-based penalty system.
Introduction
For years, UK taxpayers have worked around one major date: 31 January.
That changes under Making Tax Digital.
From April 2026, thousands of sole traders and landlords will move to quarterly reporting under the Making Tax Digital framework introduced by HM Revenue & Customs.
Instead of filing once a year, you’ll submit updates four times annually — plus a final declaration.
Miss a deadline?
You enter the new penalty points system.
This guide explains:
- Exactly when submissions are due
- What must be included
- How the system works
- What happens if you miss one
No confusion. Just clarity.
Who Must Follow MTD Deadlines in 2026/27?
From 6 April 2026, MTD applies if:
- You are self-employed or a landlord, and
- Your gross income exceeds £50,000
From April 2027, the threshold drops to £30,000.
If you fall within scope, quarterly deadlines are mandatory.
There is no annual-only option.
The Standard Quarterly Submission Dates (2026/27)
Under the standard tax year quarters, reporting periods follow:
Quarter 1
6 April – 5 July 2026
Submission deadline: 5 August 2026
Quarter 2
6 July – 5 October 2026
Submission deadline: 5 November 2026
Quarter 3
6 October 2026 – 5 January 2027
Submission deadline: 5 February 2027
Quarter 4
6 January – 5 April 2027
Submission deadline: 5 May 2027
Each submission is due one month after the quarter ends.
Deadlines are strict.
What You Must File Each Quarter
Quarterly updates are summaries — not full tax returns.
You must submit:
- Total business income for the quarter
- Total allowable expenses for the quarter
- Digital records maintained in compliant software
You do not:
- Calculate final tax liability
- Include personal income sources
- Adjust for end-of-year reliefs
Think of quarterly updates as progress reports — not final statements.
Can You Choose Different Quarter Dates?
Yes.
Some taxpayers may elect “calendar quarters” instead:
- April–June
- July–September
- October–December
- January–March
However, whichever method you choose:
- The one-month submission rule still applies
- Consistency matters
- Switching mid-year creates complexity
For most sole traders, sticking to the standard tax quarters is simpler.
The Final Declaration Explained
Quarterly updates are not the end of the process.
After the tax year ends, you must submit a Final Declaration.
Deadline:
31 January 2028 (for 2026/27 tax year)
The Final Declaration includes:
- Confirmation of quarterly figures
- Accounting adjustments
- Other income (employment, dividends, property)
- Final tax calculation
This replaces the traditional Self Assessment return.
But the January deadline remains.
What Happens If You Miss a Quarterly Deadline?
MTD operates a points-based penalty system.
For quarterly filers:
- Each late submission = 1 penalty point
- Once you reach the threshold → £200 fine
- Additional late filings → further £200 penalties
Points only expire after a sustained period of full compliance.
Missing one deadline may not trigger a fine immediately.
Repeated lateness will.
What About Tax Payments?
Quarterly updates do not automatically change tax payment dates.
Income tax payments on account still apply under existing rules unless formally changed in future legislation.
This means:
- You report quarterly
- You may still pay biannually
But better visibility helps budgeting.
Calendar Example: Sole Trader in 2026/27
Let’s make this practical.
A consultant earning £75,000 turnover:
- Must join MTD from April 2026
- Uses standard tax quarters
- Submits 4 updates (Aug, Nov, Feb, May)
- Submits final declaration by 31 Jan 2028
Total compliance events per year:
Five submissions instead of one.
That’s the real shift.
Common Mistakes to Avoid
- Waiting until the first deadline to set up software
- Confusing reporting deadlines with payment deadlines
- Forgetting the final declaration
- Not tracking expenses consistently
- Ignoring penalty point accumulation
MTD rewards discipline.
Disorganisation becomes expensive.
Key Takeaways
- MTD quarterly reporting begins April 2026 for £50k+ earners
- Submissions due one month after each quarter
- Four updates + one final declaration per year
- Final declaration due 31 January following tax year
- Late filings trigger penalty points
- Organisation and early setup prevent compliance stress
Final Thoughts
MTD quarterly deadlines represent a major behavioural shift for sole traders and landlords.
Instead of one annual tax event, you now manage five compliance moments per year.
- The structure is clear.
- The deadlines are fixed.
- The penalties are real.
Preparation is the difference between smooth compliance and unnecessary fines.
Understand your dates.
Set reminders.
Adopt compliant software early.
Get Ahead of the First Deadline
If you’re unsure whether you fall within the 2026/27 MTD scope — or whether your systems are ready for quarterly reporting — review your position now and ensure everything is in place before the first August deadline arrives.
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