April 2026 MTD Deadline: What You Need to Know

April 2026 is no longer a future date — it is weeks away. Making Tax Digital for Income Tax Self Assessment goes live for sole traders and landlords with income over £50,000. If you have not started preparing, you are already behind. But it is not too late to get ready if you act now.

Let us be clear about what is happening. From 6 April 2026, if your gross income from self-employment or property exceeds £50,000, you must use MTD-compatible software to keep digital records and submit quarterly updates to HMRC. This is not optional. It is not something you can defer. It is the law.

The quarterly update schedule means your first submission will be due by 7 August 2026 for the period 6 April to 5 July 2026. That gives you four months to file your first update — which sounds generous until you realise you need to have your software set up, your records digitised, and your processes established before you can file anything meaningful.

Here is a practical preparation timeline. Right now — today — you should choose your MTD-compatible software. HMRC maintains a list of compatible products, but the key features you need are: digital record-keeping, automatic categorisation of income and expenses, quarterly submission capability, and the ability to file your final declaration. Tools like Accounted have been purpose-built for this and handle the HMRC connection natively.

In the next two weeks, you should set up your software and import your existing records. If you have been using a spreadsheet, most MTD software can import historical data. If you have been using paper records, you will need to enter opening balances manually. This is the most time-consuming part of the transition, so do not leave it until April.

By mid-April, you should be recording all new transactions in your MTD software. Every sale, every expense, every receipt. The key is to build the habit now so that by the time your first quarterly update is due, you have a complete digital record.

One critical point that many people miss: MTD does not change what you report. The categories of income and expense are the same as Self Assessment. The calculations are the same. What changes is the format — digital instead of manual — and the frequency — quarterly plus a final declaration instead of one annual return.

The penalties for non-compliance use the new points-based system. Each late quarterly submission earns you a penalty point. Once you accumulate four points, you receive a £200 penalty. After that, every subsequent late submission attracts an additional £200. HMRC has indicated a soft landing period with lighter penalties initially, but the points still accumulate. Starting late and missing your first submissions is a poor way to begin.

For landlords, the rules are the same but the record-keeping can be more complex. You need digital records for each property, including rental income, allowable expenses, and any capital allowances. If you have multiple properties, each needs its own set of records. Mortgage interest relief, which is now given as a basic rate tax reduction rather than a deduction from profits, needs to be recorded correctly.

If you use an accountant, talk to them now about how MTD will affect your working relationship. Some accountants will handle the quarterly submissions on your behalf. Others will expect you to submit the quarterly updates yourself and handle only the final declaration. Either way, the accountant needs access to your MTD software and needs to understand your filing schedule.

For those with income between £30,000 and £50,000, your deadline is April 2027. You have an extra year, but the smart move is to start now. Set up the software, establish the habits, and use the 2026-27 tax year as a practice run. When your mandatory start date arrives, you will already be comfortable with the process.

The businesses that will find this transition easiest are the ones that already keep good digital records. If you have been using bookkeeping software and recording transactions as they happen, MTD is just a change in how you submit the data you are already collecting. If you have been working from paper or memory, the transition is bigger — but the end result is a much clearer picture of your business finances.

Do not wait. Choose your software today, set it up this week, and start recording. The April 2026 deadline is real, and the penalties for being unprepared are financial.