First year of MTD for Income Tax submissions
This article explains which Making Tax Digital (MTD) for Income Tax and Self Assessment submissions are required by sole traders and landlords in their first year of MTD for Income Tax.
From 6th April 2026, MTD for Income Tax will become mandatory in phases based on your total annual income from self-employment and/or property, beginning with those whose total qualifying income from their business and/or property is above £50,000 per year.
HMRC requires anyone registered for MTD for Income Tax to keep digital records and send four quarterly updates about their business and/or property income and expenses to HMRC. They will also have to submit an end-of-year update and final declaration after the end of the tax year.
During your first year of MTD, whether that’s the 2026/27, 2027/28 or 2028/29 tax year, depending on the amount of your qualifying income, you’ll also have to submit your Self Assessment return for the tax year prior to signing up for MTD for Income Tax.
For example, if you join MTD for Income Tax from the 2026/27 tax year, you’ll need to make the following submissions:
- By 7th August 2026, you’ll need to send your first quarterly update for the 2026/27 tax year
- By 7th November 2026, you’ll need to send your second quarterly update for the 2026/27 tax year
- By 31st January 2027, you’ll need to file your Self Assessment tax return for 2025/26 and pay any tax due, including your first payment on account for the 2026/27 tax year. Sending a quarterly update for the 2026/27 tax year won’t add an account lock to your figures in FreeAgent for the 2025/26 tax year.
- By 7th February 2027, you’ll need to send your third quarterly update for the 2026/27 tax year
- By 7th May 2027, you’ll need to send your fourth quarterly update for the 2026/27 tax year
- By 31st July 2027, you’ll need to pay your second payment on account for the 2026/27 tax year
- By 7th August 2027, you’ll need to send your first quarterly update for the 2027/28 tax year
- By 7th November 2027, you’ll need to send your second quarterly update for the 2027/28 tax year
- By 31st January 2028, you’ll need to send an end-of-year update and file your final declaration for the 2026/27 tax year and pay any tax due, including your first payment on account for the 2027/28 tax year
FreeAgent has created a downloadable Google Calendar, with all the key MTD dates marked on it, to help you stay on track. To download the calendar click here, accept the ‘Add’ prompt, and it will add MTD key dates to your own Google Calendar.
Read more in our step-by-step guide to year one of MTD for Income Tax.
Useful tip
To avoid submissions overlapping three tax years, you may wish to consider completing the submissions in the following order:
- File your Self Assessment return for the previous tax year at the beginning of the current tax year once Self Assessment filing opens and you have all the relevant information to hand such as P60s.
For example, once Self Assessment filing for the 2025/26 tax year opens on 6th April 2026, file your Self Assessment return for 2025/26 as early as possible before your first MTD for Income Tax quarterly update is due for the 2026/27 tax year (by 7th Aug 26).
- Send your MTD for Income Tax quarterly updates for the current tax year (four for each income stream you have). You can enable these to be sent to HMRC automatically.
- Send your end-of-year update and final declaration for the current tax year at the beginning of the next tax year.
For example, once the 2027/28 tax year begins on 6th April 2027, send your end-of-year update and final declaration for the 2026/27 tax year as early as possible before your first MTD for Income Tax quarterly update is due for the 2027/28 tax year (by 7th Aug 27).
If you’re unsure which order to complete your bookkeeping in, please speak to your accountant for assistance. If you’re not currently working with an accountant, you may wish to find one through FreeAgent CoPilot.
Multiple income streams
Be aware that if you have more than one income stream, for instance if you are a sole trader and you also rent out property, then you’ll need to file quarterly updates and an end-of-year update for each income stream, as well as one final declaration for all of your income together. That means you’ll need to follow most of these steps twice. You can find out what counts as multiple income streams, as well as tips for managing more than one income stream, in our how to efficiently manage multiple income streams guide.
For example, you’ll be required to make the following submissions for MTD for Income Tax:
- Four quarterly updates for each separate income stream (eight in total for two income streams)
- An end-of-year update for each separate income stream, to finalise the total income and costs and make any annual adjustments (two in total for two income streams)
- One final declaration covering all the income sources and individual information, to finalise your Income Tax position for the whole of the tax year
For landlords with multiple properties and owners, submissions will need to be made per property owner. Each owner will need to file four quarterly updates, an end-of-year update and a final declaration.
Using FreeAgent for MTD for Income Tax
Whilst it might sound daunting and take a little bit more than a year to bed in, don’t worry, FreeAgent is here to help you get it done. You may find the following articles about MTD for Income Tax useful:
- Prepare for MTD for Income Tax in FreeAgent
- Connect to HMRC for MTD for Income Tax
- Fast-track guide for sole traders for filing MTD for Income Tax quarterly updates
- Fast-track guide for landlords for filing MTD for Income Tax quarterly updates
- Switch to calendar quarterly update periods for MTD for Income Tax
- Send a quarterly update to HMRC for MTD for Income Tax
- Automate quarterly MTD for Income Tax submissions
- Request data from HMRC for MTD for Income Tax
- Complete the Annual summary page for MTD for Income Tax
- Enter Individual Information for MTD for Income Tax
- Enter adjustments and allowances for MTD for Income Tax
- Send an end-of-year update for MTD for Income Tax
- Send a final declaration for MTD for Income Tax
Using FreeAgent for MTD for Income Tax on behalf of clients
If you’re an accountant or bookkeeper and you’re a FreeAgent Partner, you may find the following articles useful for managing MTD for Income Tax for your clients:
- Set up your practice and clients for MTD for Income Tax
- Use FreeAgent’s MTD for Income Tax functionality for your clients
- Manage your clients’ MTD for Income Tax submissions in bulk
- Automate clients’ quarterly MTD for Income Tax updates and approvals
- Send MTD for Income Tax submissions to a client for approval
- MTD for Income Tax submission summary report
If you haven’t joined the FreeAgent Partner Programme and your client has added you as a user to their FreeAgent account with the role of ‘Accountant’, read how to manage a client’s MTD for Income Tax submissions as an accountant user.