Who Joins MTD in April 2028
Phase three brings in sole traders and landlords with qualifying income between £20,000 and £30,000. From 6 April 2028 they are within MTD for Income Tax.
2028 Quarterly Deadline Schedule
- Q1 (6 Apr 2028 – 5 Jul 2028): due 7 August 2028
- Q2 (6 Jul 2028 – 5 Oct 2028): due 7 November 2028
- Q3 (6 Oct 2028 – 5 Jan 2029): due 7 February 2029
- Q4 (6 Jan 2029 – 5 Apr 2029): due 7 May 2029
Impact of the £20,000 Threshold
The reduced threshold significantly expands the population of taxpayers within MTD, covering many smaller landlords and part-time sole traders for the first time. If you have modest self-employment or rental income that has so far stayed outside MTD, 2028 is likely the year it applies to you.
Will the threshold fall below £20,000?
The government has said it will review extending MTD to those with qualifying income below £20,000, but no threshold under £20,000 has been confirmed and none applies from April 2028. If that changes, the earliest any lower threshold could take effect would be a future tax year, with notice. We update this page as HMRC publishes more detail.
Preparing for MTD in 2028
If your qualifying income is between £20,000 and £30,000, you have time to plan: start digital record-keeping, evaluate software and prepare for HMRC registration ahead of April 2028.
What the quarterly updates involve
Like earlier cohorts, 2028 entrants send four cumulative quarterly updates — short summaries of income and expenses, with no tax calculated at that point — followed by a year-end final declaration. Standard or calendar quarters can be used; the deadlines remain 7 August, 7 November, 7 February and 7 May.
Final declaration and payment dates
The first final declaration for 2028 entrants covers the 2028/29 tax year and is due by 31 January 2030, replacing the Self Assessment return. As always, MTD changes reporting, not payment: tax remains due on 31 January, with any payments on account on 31 January and 31 July.
Penalties
Late updates and declarations are subject to the points-based penalty system — a point per late submission, a £200 penalty at the four-point threshold for quarterly filers, plus interest and separate late-payment charges. Keeping records current and letting your software submit on time avoids all of it.
Resources and Support
Use our free eligibility check and explore our setup services to prepare for the 2028 start date in good time.