MTD for Income Tax, without the panic
The biggest change to Self Assessment since Self Assessment is now live. Here's who's in, from when, what actually changes — and the look-back rule that catches people out.
Verified against live GOV.UK guidance on 5 July 2026.
The three phases
“Qualifying income” is your combined self-employment turnover and gross property income before expenses — and the test looks at a past return, not this year's.
| Mandated from | Qualifying income | Decided by | Status |
|---|---|---|---|
| April 2026 | Over £50,000 | Your 2024-25 tax return | In force now |
| April 2027 | Over £30,000 | Your 2025-26 tax return | Confirmed |
| April 2028 | Over £20,000 | Your 2026-27 tax return | In live guidance |
The quarterly rhythm
Each update is cumulative (always from 6 April), sent from MTD-compatible software. First deadline of the new regime: 7 August 2026.
Update 1 · 6 April – 5 July
7 August
Update 2 · 6 April – 5 October
7 November
Update 3 · 6 April – 5 January
7 February
Update 4 · 6 April – 5 April
7 May
Quarterly updates are running totals of income and expenses — not tax calculations, not payments. The year still finishes with a final declaration (through software), and tax payment dates are unchanged.
MTD questions, answered plainly
Who has to use MTD for Income Tax from April 2026?
Sole traders and landlords (or both combined) whose qualifying income — total turnover from self-employment plus gross property income, before expenses — was over £50,000 on their 2024-25 tax return. The test looks backwards: your past return decides your obligation, so you may already be mandated even if this year is quieter.
When do the £30,000 and £20,000 thresholds start?
Over £30,000 joins from April 2027 (based on the 2025-26 return) and over £20,000 from April 2028 (based on the 2026-27 return) — the £20,000 phase now appears in HMRC’s live guidance, not just announcements. Below £20,000, Self Assessment continues for now.
What are the quarterly update deadlines?
Updates are cumulative — each one covers from 6 April to the quarter end — and are due by 7 August, 7 November, 7 February and 7 May. You can elect calendar quarters (from 1 April) instead, but only before your first update. Missing the rhythm is the most common early failure, which is why software that files from your live books matters.
Do I still file a Self Assessment return?
The year still ends with a final declaration, and under MTD it must be made through MTD-compatible software rather than the old online return. Quarterly updates are running totals, not tax bills — payment dates (31 January, plus payments on account) are unchanged.
Are there exemptions or deferrals?
Yes — HMRC maintains exemption routes (digital exclusion among them) and certain groups are deferred to April 2027. If you think you qualify, check HMRC’s exemption guidance directly rather than assuming; exemption is claimed, not automatic.
Does Blankitt Finance support MTD for Income Tax?
Yes — quarterly updates come from the books you already keep (bank feeds, invoices, expenses categorised as you go), on every paid tier from £14/mo, not as a paid add-on. The same product handles MTD VAT if you cross the £90,000 registration threshold.
Guidance, not tax advice. Full 2026-27 figures on the tax rates & dates page.
Quarterly updates from books that keep themselves.
Bank feeds in, expenses categorised as you go, quarterly updates out — MTD for Income Tax is included on every Blankitt Finance tier from £14/mo, never a paid add-on.