MTD for Income Tax: deadlines & penalties

The quarterly calendar

Using HMRC's standard quarters, the deadlines fall on the same dates every year (a calendar-quarter election is available, but the update deadlines are the same):

The first-ever MTD quarterly update was due 7 August 2026. Confirm your own dates in your software or on GOV.UK — and see what you actually send each quarter.

How the penalties work

MTD uses a points-based system: miss a quarterly deadline and you get a point. Reach the points threshold for your filing frequency and a fixed financial penalty applies, with further penalties if lateness continues. The design deliberately targets persistent lateness — a single late update does not trigger a fine on its own, but points accumulate, so the habit matters.

The 2026/27 grace period (read this before you panic)

HMRC has confirmed a soft landing: no penalty points for late quarterly updates during the 2026/27 tax year for those in the first wave. That is genuine breathing room to get the routine working — but it removes the points, not the obligation. You still keep digital records and file the updates; you just won't be penalised for lateness in year one. Use the grace period to practise, not to postpone.

Staying ahead of the dates

• Put all four dates (7 Aug, 7 Nov, 7 Feb, 7 May) plus 31 January in your calendar now.
• Check whether you're even mandated yet with our deadline checker and does MTD apply to me? guide.
• Categorise little and often so each update is a five-minute confirmation, not a scramble.
• File your first real update early in the window to prove your software connection works.

New to MTD? Start with the MTD sole trader checklist.

FAQ

What are the MTD for Income Tax deadlines?

Four quarterly updates a year, due 7 August, 7 November, 7 February and 7 May, plus a final declaration by 31 January after the tax year ends. The very first quarterly update under MTD was due 7 August 2026 for those mandated from April 2026.

What happens if I miss a quarterly update?

MTD uses a points-based penalty system: you get a point for each missed quarterly deadline, and a financial penalty applies once you reach a threshold of points. However, HMRC has confirmed a soft landing — no penalty points for late quarterly updates during the 2026/27 tax year for the first wave — so the first year is a grace period to get into the routine.

Does MTD change when I pay my tax?

No. Payment dates are unchanged: the 31 January balancing payment (and payments on account in July, if they apply to you) work as before. The quarterly updates are information, not bills — there is no payment due with a quarterly update.

Is the grace period the same as not having to file?

No. The soft landing removes penalty points for late quarterly updates in 2026/27 — it does not remove the obligation to file. You still keep digital records and send the updates; you just won't collect points for lateness in that first year. Treat it as breathing room, not a pass.

When do the penalties bite properly?

After the soft-landing period, the points system applies in full: reach the points threshold for your filing frequency and a fixed penalty follows, with further penalties for continued lateness. Filing on time keeps your points at zero — the system is designed to punish persistent lateness, not a single slip.