When sole traders are affected
- April 2026 — turnover (plus any rental income) over £50,000 (in effect now)
- April 2027 — over £30,000
- April 2028 — over £20,000
The first quarterly update for the 2026 group covered 6 April – 5 July 2026 and was due 7 August 2026. If you're already in this wave, your next update covers 6 April – 5 October 2026 and is due 7 November 2026.
It's your turnover that counts
The threshold is based on gross turnover — your total business income before expenses — combined with any rental income, not your taxable profit. So a busy sole trader with tight margins can still be inside MTD.
What sole traders need to do
Set up your HMRC personal tax account and Self Assessment, register for MTD, keep digital records of your income and expenses in compatible software, and file quarterly. If bookkeeping isn’t how you want to spend your time, we can register you and file on your behalf.
Your four quarterly deadlines in full
Once you are in MTD, you file four quarterly updates plus a year-end tax return. Using the standard quarters, the sole-trader schedule is:
- Q1 — 6 Apr to 5 Jul — due 7 August
- Q2 — 6 Jul to 5 Oct — due 7 November
- Q3 — 6 Oct to 5 Jan — due 7 February
- Q4 — 6 Jan to 5 Apr — due 7 May
- Self Assessment tax return — due 31 January after the tax year ends
Updates are cumulative estimates — no tax is due until the normal 31 January date.
The 2026 to 2027 quarterly-update penalty easing
If you are mandated from 6 April 2026, HMRC has confirmed you will not receive penalty points for late quarterly updates during your first 12 months. It is genuine breathing room while you settle in — but it does not cover late payment of tax, so aim to file on time regardless.
What happens if you miss a deadline
Outside the easing, each missed quarterly update earns a penalty point; four points triggers a £200 penalty, with further £200 charges for continued lateness. Late payment of tax is charged separately, with interest. If you have already missed a deadline, file as soon as you can to stop points and interest building — or let us bring you up to date.
We file sole trader MTD for you
Call 0114 327 1480 or email shjenquiry@msc-g.com and we’ll handle your registration and quarterly filing.