When does Making Tax Digital for Income Tax start?

MTD for Income Tax becomes mandatory from 6 April 2026 for sole traders and landlords with qualifying income over £50,000. A second phase starts 6 April 2027 for those earning over £30,000, and a third phase from 6 April 2028 for those earning over £20,000.

What are the quarterly update deadlines for MTD ITSA?

Quarterly updates must be submitted by: 7 August (Q1, covering 6 April to 5 July), 7 November (Q2, covering 6 July to 5 October), 7 February (Q3, covering 6 October to 5 January), and 7 May (Q4, covering 6 January to 5 April). The Final Declaration is due by 31 January following the end of the tax year.

Do I need special software for Making Tax Digital?

Yes. You must use MTD-compatible software that connects to HMRC to submit your quarterly updates and Final Declaration. myJobManager is fully MTD-compatible with direct HMRC API integration, handling quarterly submissions, digital record keeping, capital allowances and the Final Declaration automatically.

What happens if I miss a quarterly update?

HMRC uses a points-based penalty system. Each late submission earns one penalty point. After four points (for quarterly filers), you receive a £200 penalty, with £200 for each subsequent late submission. However, for the first year (2026/27), HMRC has confirmed a penalty holiday — no points will be applied for late quarterly updates.

Does myJobManager handle MTD for Income Tax?

Yes. myJobManager has comprehensive MTD ITSA support built in. It tracks your self-employment income and expenses digitally, aggregates quarterly data, submits updates directly to HMRC via API, handles capital allowances, manages property income for landlords, and processes the year-end Final Declaration — all from the same platform you use for jobs, invoicing, payroll and accounting.

I am a self-employed tradesperson earning over £50,000 — what do I need to do?

From 6 April 2026, you must keep digital records of all business income and expenses using MTD-compatible software, submit four quarterly updates to HMRC during the tax year, and file a Final Declaration by 31 January. myJobManager handles all of this automatically — your job income, invoices, expenses and payroll already flow through the system, so quarterly submissions are ready at the click of a button.

Making Tax Digital for Income Tax (MTD ITSA) — What You Need to Know

What Is Making Tax Digital for Income Tax?

Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) is the biggest change to how sole traders and landlords report their earnings since Self Assessment was introduced in 1997.

Digital Records

You must keep digital records of all business income and expenses using MTD-compatible software. Paper records and spreadsheets on their own are no longer enough.

Quarterly Updates

Instead of one annual tax return, you must submit four quarterly updates to HMRC during the tax year, summarising your income and expenses.

Final Declaration

After the tax year ends, you file a Final Declaration (replacing your Self Assessment return) adding any other income, reliefs and allowances.

Key difference from current Self Assessment: Today, you submit one tax return a year by 31 January. Under MTD, you submit five times — four quarterly updates plus the Final Declaration. But if your records are kept digitally throughout the year, the quarterly submissions can be done in minutes. Payment dates do not change — you still pay on 31 January and 31 July as before.

Who Is Affected?

MTD for ITSA is being rolled out in three phases based on your qualifying income (combined gross self-employment and property income, not profit).

Phase 1

6 April 2026

Income over £50,000

~780,000 people affected

Now live

Phase 2

6 April 2027

Income over £30,000

~970,000 additional people

Starts in 307 days

Phase 3

6 April 2028

Income over £20,000

~900,000 additional people

Starts in 673 days

Who must comply?

Affected

Sole traders (self-employed individuals) above the threshold
Landlords (UK property income) above the threshold
Anyone with combined self-employment + property income above the threshold

Not yet affected

Partnerships and LLPs (no date set yet)
Limited companies (covered by Corporation Tax)
Trusts and personal representatives
Digitally excluded individuals (age, disability, location)

Quarterly Update Deadlines

For the 2026/27 tax year (the first mandatory year), here are your deadlines:

Submission	Period Covered	Deadline
Q1 First quarterly update	6 April – 5 July 2026	7 August 2026
Q2 Second quarterly update	6 July – 5 October 2026	7 November 2026
Q3 Third quarterly update	6 October 2026 – 5 January 2027	7 February 2027
Q4 Fourth quarterly update	6 January – 5 April 2027	7 May 2027
FD Final Declaration	Full 2026/27 tax year	31 January 2028

Good news: HMRC has confirmed a penalty holiday for 2026/27 — no late submission penalty points will be applied for the first four quarterly updates. This gives you a full year to adjust. However, late payment penalties still apply.

What Happens If You Don’t Comply?

From 2027/28 onwards, HMRC’s new points-based penalty system kicks in.

Late Submission Penalties

Each late quarterly update earns 1 penalty point
After 4 points: £200 fixed penalty
Each further late submission: another £200
Points reset after 12 months of on-time submissions
All outstanding returns must also be filed to reset

Late Payment Penalties

Days 1–15: No penalty (grace period)
Day 16–30: 3% of outstanding balance
Day 31+: Additional 3% (total 6%) plus daily interest at 10% per annum
Late payment penalties apply from year one (no holiday)

How myJobManager Makes MTD Effortless

If you already use myJobManager for your trade business, you’re already MTD-ready. Your income, expenses and job data flow straight into your quarterly submissions — no rekeying, no spreadsheets, no bridging software.

Direct HMRC Connection

myJobManager connects directly to HMRC’s MTD APIs via OAuth. Submit quarterly updates and your Final Declaration with a single click — no manual data entry on the HMRC portal.

Automatic Aggregation

Your invoices, job income, expenses and purchases are already in the system. myJobManager automatically aggregates everything into the quarterly format HMRC requires — ready to review and submit.

Deadline Tracking

Your ITSA obligations are synced from HMRC and displayed with urgency badges. You’ll always know what’s due next — and whether you’re on track or overdue.

Property Income Support

Landlords can track UK and foreign property income and expenses, manage multi-property portfolios and submit property quarterly updates — all within the same platform.

Capital Allowances

Capital allowance pools are tracked automatically. Main pool, special rate pool and annual investment allowance calculations feed straight into your tax computation.

Year-End & Final Declaration

At year-end, myJobManager runs your tax calculation via HMRC’s API, prepares the Business Source Adjustable Summary (BSAS) and submits your Final Declaration — replacing your old Self Assessment return.

The myJobManager Advantage for Sole Traders

Without myJobManager

Buy separate MTD software
Manually enter income and expenses quarterly
Reconcile with your accounting software
Reconcile with your job management tool
Work out capital allowances by hand
Hope nothing is missed before the deadline
Pay your accountant extra for quarterly work

With myJobManager

MTD built in — no extra software
Income and expenses tracked as you work
Quarterly data aggregated automatically
One-click submission to HMRC
Capital allowances calculated for you
Deadline reminders so you never miss one
Accountant gets read-only access if needed

Built for Self-Employed Tradespeople

Most MTD software is generic. myJobManager is built specifically for UK trade businesses — so your day-to-day work is your tax record.

Job Income Flows Straight Through

When you invoice a customer, the income is recorded in your accounts and automatically included in your next quarterly update. Quote → Job → Invoice → HMRC — no rekeying.

Expenses Captured on the Go

Photograph receipts on your phone and myJobManager’s AI-powered OCR extracts the details. Materials, fuel, tools — all categorised and ready for your quarterly submission.

CIS Deductions Included

If you’re a subcontractor, CIS deductions suffered are tracked and flow through to your tax computation. If you’re a contractor, CIS deductions and returns are handled too.

Vehicle & Mileage Tracking

Fleet management with mileage records feeds your allowable expenses. Company vehicle benefit-in-kind calculations are handled automatically for the tax computation.

Current Self Assessment vs MTD for Income Tax

Here’s what changes — and what stays the same.

Aspect	Current Self Assessment	MTD for Income Tax
Reporting frequency	Annual (once a year)	Quarterly + Final Declaration (5 times a year)
Record keeping	Paper or digital (your choice)	Must be digital using compatible software
How you submit	HMRC online portal or paper	Via MTD software only
Data submitted	Annual totals	Cumulative quarterly summaries + year-end
Correcting errors	Amend annual return	Correct in next quarterly update (easier)
Payment dates	31 Jan + 31 July	No change — same payment dates
Tax calculation visibility	Only at year-end	Estimated tax after each quarterly update

Your MTD Readiness Checklist

If your qualifying income exceeded £50,000 in 2024/25, you need to act now.

Check if you’re in scope

Add your gross self-employment income + gross property income from 2024/25. If it exceeds £50,000, you’re in Phase 1 from April 2026.

Get MTD-compatible software

You need software that connects to HMRC’s MTD APIs. myJobManager is fully MTD-compatible and includes everything you need — no bridging software required.

Start keeping digital records

From 6 April 2026, all income and expenses must be recorded digitally. With myJobManager, they already are — every invoice, expense and bank transaction is tracked.

Authorise your software with HMRC

Grant myJobManager permission to submit on your behalf via HMRC’s OAuth flow. This takes about two minutes.

Submit your first quarterly update by 7 August 2026

myJobManager aggregates your Q1 data and lets you review it before submitting to HMRC with one click.

One Platform for Everything

With myJobManager, your MTD obligations are handled by the same system that manages your jobs, invoicing, payroll, CIS and accounting. No extra software. No extra subscriptions. No extra data entry.

Jobs & Quotes

Invoicing

Accounting

Payroll & CIS

MTD VAT

MTD ITSA

Bank Rec

CRM

More Resources

CIS Deductions Guide UK Construction Compliance Savings Calculator

Quote to Final Accounts Why Integrate Jobs & Accounts myJobManager vs Xero

Making Tax Digital for Income Tax

MTD for ITSA Is Live