Making Tax Digital Deadlines and Timeline

Team Nomi

Apr 13, 2026
5 minutes read

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With MTD 2026 now fully rolled out and the first returns expected in June/July, businesses can no longer afford to wait. The shift to digital tax reporting is changing how finances are managed, and staying ahead of deadlines is essential to avoid penalties.

The key Making Tax Digital deadline to watch is April 2026, when MTD for Income Tax begins for those earning over £50,000, with the next phase in April 2027 bringing even more taxpayers into the system.

In this guide, we will break down when digital tax starts for different types of taxpayers, what the upcoming changes mean for your day-to-day accounting, and how to stay compliant without last-minute stress.

When Does Digital Tax Start?

Digital tax has been introduced in stages, starting with VAT registered businesses that must now keep digital records and file returns online.

From April 2026, it will expand to self-employed individuals and landlords. Businesses must stay aware of the MTD deadlines to remain compliant.

Making Tax Digital Timeline

The Making Tax Digital timeline has been rolled out in phases. Here are the most important milestones:

2019 – MTD for VAT Introduction

From April 2019, businesses with a turnover above £85,000 were required to follow MTD for VAT, meaning they had to keep digital records and submit VAT returns online.

2021 – Digital Links Requirement

From April 2021, all businesses under MTD had to ensure digital links between their accounting systems to maintain compliance.

2022 – MTD for All VAT Registered Businesses

From April 2022, MTD rules applied to all VAT-registered businesses, regardless of their turnover.

2026 – MTD for Income Tax Begins

From April 2026, self-employed individuals and landlords earning over £50,000 must follow MTD for Income Tax rules.

2027 – Threshold Reduced to £30,000

From April 2027, the income threshold drops to £30,000, bringing more taxpayers into the MTD system.

2028 – Threshold Reduced to £20,000

From April 2028, the threshold will further reduce to £20,000, expanding MTD requirements to a wider group of taxpayers.

How MTD Affects Small Businesses and Company Directors

If you are a small business owner or director, MTD for small business will change how you manage your finances and handle your tax reporting.

You will need to:

• • Use digital accounting software
  • Keep records up to date
  • Submit information regularly instead of once a year

Many business owners are concerned about extra work. However, once systems are set up, it becomes easier to track income and expenses. Still, missing an mtd deadline can lead to penalties, so staying organised is key.

How to Prepare for Making Tax Digital Deadlines

Getting ready for making tax digital deadlines does not have to be difficult. Here are some simple steps:

1. Choose the right software

Use HMRC-recognised accounting software like Nomi that fully supports MTD for seamless VAT reporting.

2. Keep digital records

Start recording your income and expenses digitally instead of using paper.

3. Understand your deadlines

Know your MTD deadline for each submission, whether quarterly or annual.

4. Work with an accountant

A professional can help you stay compliant and avoid mistakes.

5. Start early

Do not wait until the last moment. The earlier you prepare, the easier it becomes.

Following these steps will help you stay on track with the Making Tax Digital timeline and avoid penalties.

Conclusion

Understanding Making Tax Digital deadlines is now essential for anyone running a business. As the system continues to roll out, keeping up with key dates, using the right tools, and staying organised will help you avoid penalties and manage your finances with ease. The earlier you prepare, the smoother the transition will be, especially with more frequent reporting becoming part of normal business activity.

If you are looking for a simple way to stay on top of your MTD requirements, Nomi MTD software can make things much easier. It helps you keep digital records, submit returns directly to HMRC, and track your finances in one place without confusion.

Frequently Asked Questions

1. Why is HMRC bringing in MTD?
   Ans: HMRC introduced Making Tax Digital to reduce errors, improve record-keeping, and make tax reporting more accurate and easier for businesses and individuals.
2. What happens if I miss an MTD deadline?
   Ans: Missing an MTD deadline can lead to penalty points, fines, and increased scrutiny, making it important to submit updates on time.
3. Do all self-employed individuals have to go digital?
   Ans: Not all self-employed people must go digital immediately; only those earning above the income threshold in the Making Tax Digital timeline are required to do so.
4. What are the pros of Making Tax Digital?
   Ans: MTD provides real-time tax insights, reduces errors, simplifies record-keeping, and helps plan finances better by reporting income and expenses digitally.