Making Tax Digital: who, and when
MTD for Income Tax means keeping your records digitally in HMRC-recognised software and sending HMRC a summary every quarter, with a final declaration after year end replacing the traditional tax return. It is rolling out by gross income — turnover, not profit:
| From | Who is in | Qualifying income |
|---|---|---|
| April 2026 | Sole traders and landlords | Over £50,000 |
| April 2027 | Sole traders and landlords | Over £30,000 |
| April 2028 | Sole traders and landlords | Over £20,000 |
Quarterly updates are due by the 7th of the month following each quarter end (7 August, 7 November, 7 February and 7 May). They are summaries, not mini tax returns. Miss them and HMRC's points system bites: each late submission earns a point, and at four points it is £200 per late submission.
The dates that actually matter
| Date | What happens |
|---|---|
| 5 April | Tax year ends. Gather your records while they are fresh. |
| 31 July | Second payment on account for the year just ended. |
| 5 October | Deadline to register for Self Assessment if you are new. |
| 31 January | Online return (or MTD final declaration), the balance of last year's tax, and the first payment on account for the current year. All at once. |
| 19th monthly | If you are a CIS contractor: monthly CIS return. |
Payments on account, explained properly
If your Self Assessment bill is £1,000 or more (and less than 80% of your tax is collected at source), HMRC asks for advance payments towards next year: half on 31 January and half on 31 July, each 50% of last year's bill. It is not extra tax — it is next year's tax, earlier. But the first time it happens, your January bill is roughly 150% of what you expected, and that surprise is what hurts.
If you know your profits will be lower this year, you can apply to reduce your payments on account. Reduce them too far, though, and HMRC charges interest on the shortfall, so do it with real numbers rather than optimism.
Year-end preparation in one paragraph
Before your year end: chase in your paperwork (CIS statements, receipts, invoices), reconcile your bank, list money owed to you and by you, photograph anything still on paper, and note anything unusual to ask about. An hour of tidying in April saves real money in January, because clean records mean nothing missed and no estimated figures.
Or hand the whole calendar to us.
MTD-ready bookkeeping, quarterly updates filed for you, and no deadline ever missed. That is the day job.
Get in touchThis guide is for general information only and does not constitute professional tax, legal or financial advice. Figures relate to the 2026/27 tax year. Consult a qualified adviser about your circumstances. Bookkeeping Partner Ltd is registered with the Institute of Certified Bookkeepers.