MTD ITSA deadlines explained: when you need to submit and what to file

Making Tax Digital (MTD) is finally becoming a reality for sole traders and landlords.

If you earn more than £50,000 from self-employment or property, you’ll be expected to start reporting to HMRC every few months instead of just doing a yearly tax return.

That kicks in from April 2026. If you’re between £30,000 and £50,000, you get a bit longer – April 2027’s your date.

For a full breakdown of what the MTD rules mean in practice, see our guide to Making Tax Digital for the self-employed.

Getting prepared for MTD isn’t something worth panicking about, but it’s also not something you should ignore.

You’ll need to use proper software, record things as you go, and get into the rhythm of sending updates throughout the year.

That last-minute January rush won’t really work anymore – or at least, it’ll get you into trouble if you try.

So what should you do now? The primary goal is to become comfortable with digital bookkeeping.

Even if the rules don’t affect you for another year or two, it’s worth getting into good habits now while there’s no pressure.

Start using proper tools, test out what works, and give yourself a decent run-up to get things sorted. You might also want to check how prepared others are — see our article on how most self-employed people still aren’t ready for MTD.

Will MTD ITSA apply to you?

You’ll fall under MTD ITSA if your total gross income from self-employment and/or property is over £50,000 in a tax year. This includes:

• Sole trader income
• UK or overseas rental income
• Furnished holiday lettings

If your combined income is between £30,000 and £50,000, you’ll join the scheme a year later, from April 2027.

If your gross income is under £30,000, MTD ITSA doesn’t yet apply to you. However, the government has stated that it still plans to bring more taxpayers into the system over time. You can read the full guidance on GOV.UK.

What will you have to submit?

Instead of filing one Self Assessment return each January, you’ll be reporting throughout the year using MTD-approved software. You’ll need to submit:

• Quarterly updates showing your income and expenses
• End of period statement (EOPS) – to finalise your year’s figures
• Final declaration – replacing the current Self Assessment return

Each type of income (trading and property) needs to be reported separately. So if you’re a sole trader and a landlord, you’ll have to keep two sets of digital records and file two sets of reports.

What are the quarterly deadlines?

Under the default system, quarterly updates must be submitted cumulatively, covering all activity from the start of the tax year up to each quarter end. These are the deadlines:

Quarter	Period covered	Filing deadline
Q1	6 April to 5 July	7 August
Q2	6 April to 5 October	7 November
Q3	6 April to 5 January	7 February
Q4	6 April to 5 April	7 May

If preferred, you can apply to use calendar quarter reporting instead, which lets you use standard quarters (e.g. 1 April to 30 June). The same 7th-of-the-month deadlines still apply.

How to prepare for MTD ITSA

Don’t wait until April 2026 to act. You’ll need to have everything in place from the start of the 2026/27 tax year — and ideally before. Here’s what you can do now:

• Choose MTD-compliant software. Tools like Xero, FreeAgent, and QuickBooks are already set up to handle MTD.
• Start digital recordkeeping in 2025/26. Use the coming year as a trial run — keep receipts, mileage, income, and expenses in software instead of paper or spreadsheets.
• Improve your bookkeeping habits. If you only update your records once a year, that will have to change. MTD requires more regular input — monthly or weekly is ideal.
• Talk to your accountant. If you use one, find out how they’ll manage your MTD submissions and whether their fees will change. If you don’t use an accountant, consider whether now’s the time to get one.
• Plan for multiple income sources. If you’re both a landlord and a trader, you’ll need to keep records and file separately for each stream.

What if you don’t comply?

HMRC is introducing a new points-based penalty system for MTD ITSA. If you miss a deadline, you get a penalty point. Once you hit a certain number of points, you’ll be fined.

These points reset after a period of good behaviour, but it’s better not to get them in the first place.

Late submissions, missing records, or filing outside of the software could all lead to trouble. So, treat 2025/26 as your preparation year, and get your system running smoothly before the rules take effect.

Final thoughts

It’s easy to put this sort of thing off, especially when the deadlines feel miles away.

But in practice, MTD will only cause problems if you ignore it until the last minute.

The businesses that stay ahead of these changes tend to be those with well-organised systems and accurate records.

You don’t have to become an accountant overnight, but you do need to be aware of what’s coming and take small steps now.

And if you’re already using cloud accounting software, there’s a good chance you’re 90% of the way there.

The biggest challenge will be changing your habits — updating records more regularly, understanding what you’ve submitted, and staying on top of the deadlines.

Not thrilling, but it could save you time, stress, and penalties later on.

Get your setup right now, and 2026 won’t feel like a scramble. It’ll just be business as usual – but with fewer envelopes.