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Making Tax Digital timeline: meet the deadlines

This guide explains the key dates for when your business needs to move to the new 'Making Tax Digital' system, including your first MTD tax cycle.

Change can feel scary, especially when it’s out of your hands.

‘When does tax go digital?’ is probably one of the first questions you had after finding out about HMRC’s income tax shakeup. 

From April 2026 is the short answer, for some but not all businesses. Let’s get into exactly when your time will come, so you can add those all important dates to your calendar. 

Bonus points for setting yourself reminders along the way (or use our tool and we’ll do that for you).

Change is coming from April 2026  

Making Tax Digital for Income Tax (MTD) officially starts on 6 April 2026 for sole traders and landlords with a gross income over £50,000. Getting into good habits will help set you up for a smooth move.

Put in the prep now 

As the name suggests, this new way of filing is all about keeping digital records. If you haven’t already, try:

You’ll also thank yourself later if you spend time now tidying up your personal and business finances. Getting out of the habit of paying for business things on your personal card now will save you untangling them later.

Pick your HMRC-recognised software

You’ll need to use software that works with Making Tax Digital to create digital records, send quarterly updates and submit your tax return. 

There are different types. Some create digital records and others connect to your existing records. There’s a full list of all the different types of software at HMRC’s website. 

If you like the idea of filing tax straight from your bank to HMRC, that’s exactly what a Monzo Business Account will let you do. No need to buy extra software or get your head around a new tool — it’s all built in, powered by Sage and ready to go.    

The sooner you sort the software, the sooner you can get comfy with how you’ll keep your digital records.

31 January 2026: File a Self Assessment as usual

This date won’t come as a surprise. It’s your usual deadline for filing your tax return for the 2024 to 2025 tax year and, now you’ve joined MTD, one of the last times you’ll do it this way. 

The official MTD start date and your first update

If you’re a sole trader, landlord or both, with a gross income over £50,000, these are the dates you need.

Gross income is everything that comes in before anything goes out. It’s also called turnover.   

6 April 2026: The MTD start date

From this date, record all of your business income and expenses for 2026 to 2027 digitally, using your chosen HMRC-recognised software. 

Start preparing to send quarterly updates to HMRC, summarising your income and expenses for that quarter. It’s not a full tax return as you know it.

7 August 2026: Send your first quarterly update

Your first proper MTD deadline, summarising 6 April 2026 to 5 July 2026. 

By this point, you’ll need to have used your digital tools to keep on top of your digital record keeping so you can quickly send the summary figures to HMRC.

Completing your first MTD tax cycle

What to send and when to send it by:

  • 7 August 2026: First quarterly update (covers 6 April 2026 to 5 July 2026)

  • 7 November 2026: Second quarterly update (covers 6 April 2026 to 5 October 2026)

  • 31 January 2027: Self Assessment for 2025 to 2026 tax year

  • 7 February 2027: Third quarterly update (covers 6 April 2026 to 5 January 2027)

  • 7 May 2027: Fourth quarterly update (covers 6 April 2026 to 5 April 2027)

  • 31 January 2028: Submit your 2026 to 2027 tax return, using your MTD software

Final tax return and future waves

The quarterly updates are just summaries. They aren’t a full tax return and you won’t have to pay anything just yet. 

The last, essential step is to check everything over and confirm the numbers add up at the end of the year.

31 January 2028: The final tax return for 2026 to 2027

That’s a wrap. Confirm your figures from your four quarterly updates and include any other taxable income sources like interest, dividends and capital gains. Claims allowances too. 

Future waves: Sole traders and landlords over £30,000

You’ll follow the same reporting cycle, but the dates shift back a year.

If your gross income’s over £30,000, you’ll start in April 2027.

If your gross income’s over £20,000, you’ll start in April 2028.

This Making Tax Digital timeline should help get you on the right track from day one. As you look around for digital software, don’t forget Monzo Business has it in the bank. 

Only sole traders or limited company directors in the UK can apply. Ts&Cs apply.

Questions? Answers.

When’s the last time I will file a normal Self Assessment tax return?

If you join Making Tax Digital in April 2026, you’ll file your final Self Assessment for the 2025 to 2026 tax year. The deadline is 31 January 2027.

Has the timeline for MTD for VAT already passed?

Making Tax Digital for VAT started in 2019. All VAT registered businesses should now be signed up. VAT is short for Value Added Tax. You can find out more at HMRC’s website.

Does this timeline apply to Limited Companies?

No. Limited companies don’t pay income tax. Instead, they pay corporation tax and HMRC has confirmed they have no plans to introduce Making Tax Digital for corporation tax right now.

I use an accountant. Do I still need to worry about this timeline?

If you’ve given your accountant permission, they can do Making Tax Digital for Income Tax for you. The same timeline applies but they will meet the deadlines on your behalf.

Will I pay tax quarterly?

No. Making Tax Digital changes how you report income tax, not when you pay.

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