Who Joins MTD in April 2027
The second phase brings in sole traders and landlords with qualifying income between £30,000 and £50,000. From 6 April 2027 they must keep digital records and submit quarterly updates.
What counts toward the £30,000 threshold
Qualifying income is your gross self-employment turnover plus your gross property income, before expenses — not your taxable profit. If those combined gross figures on your relevant Self Assessment return exceed £30,000, you are in scope from April 2027. PAYE salary, dividends, savings interest and pensions do not count.
2027 Quarterly Deadlines for New Entrants
- Q1 (6 Apr 2027 – 5 Jul 2027): due 7 August 2027
- Q2 (6 Jul 2027 – 5 Oct 2027): due 7 November 2027
- Q3 (6 Oct 2027 – 5 Jan 2028): due 7 February 2028
- Q4 (6 Jan 2028 – 5 Apr 2028): due 7 May 2028
Continued Obligations for 2026 Cohort
Anyone already in MTD from April 2026 continues their quarterly update cycle in 2027 without interruption, plus their final declaration for 2026/27 by 31 January 2028.
Preparing to Join MTD in 2027
If you expect to be in scope from April 2027, begin choosing software, organising your records and registering for MTD several months ahead of the start date.
How to Register Before April 2027
Registration is completed through your HMRC online account once your MTD-compatible software is set up and authorised.
What each quarterly update contains
Each quarterly update is a short, cumulative summary of your income and expenses for the year to date, sent from your software. No tax is calculated and no reliefs are claimed at this stage — the updates are estimates, and because they build on each other, an error in one quarter is corrected in the next. You can use HMRC’s standard quarters or elect for calendar quarters (ending 30 Jun, 30 Sep, 31 Dec, 31 Mar); the 7 August/November/February/May deadlines are the same either way.
Final declaration and payment dates
New 2027 entrants complete their first final declaration for the 2027/28 tax year by 31 January 2029, which replaces the Self Assessment return. MTD does not change when tax is paid: your balancing payment stays due on 31 January, with any payments on account on 31 January and 31 July as now.
Penalties for late updates
Late quarterly updates and declarations fall under the points-based system — a point per late submission and a £200 penalty at the threshold (four points for quarterly filers), with interest and separate penalties for late payment. The 12-month easing on penalty points was confirmed specifically for the April 2026 cohort; if you join in 2027 you should check the current HMRC guidance rather than assume the same relief applies.