The MTD ITSA Phased Rollout — Confirmed Start Dates
MTD ITSA is being introduced in three phases, each covering a lower income threshold. The Phase 1 mandate began on 6 April 2026. If you have qualifying income above £50,000, you are already required to comply.
| Phase | Who It Affects | Mandatory From | Status |
|---|---|---|---|
| Phase 1 | Qualifying income over £50,000/year | 6 April 2026 | ✅ Now live |
| Phase 2 | Qualifying income over £30,000/year | 6 April 2027 | 🔜 Confirmed |
| Phase 3 | Qualifying income over £20,000/year | TBC — likely April 2028 | 📋 Expected |
| — | Income below £20,000 | Not currently planned | — |
The threshold is based on your gross rental income and/or self-employment turnover before expenses — not your taxable profit. A landlord receiving £55,000 rent but spending £25,000 on costs is still above the Phase 1 threshold. Full details: What income counts toward the £50k threshold →
The 2026/27 Quarterly Submission Calendar
Under MTD ITSA, you submit four quarterly updates per year plus a Final Declaration. For the first mandatory year (tax year 2026/27), the deadlines are:
| Submission | Period Covered | Deadline | What You Submit |
|---|---|---|---|
| Quarter 1 | 6 April – 5 July 2026 | 5 August 2026 | Income & expenses summary |
| Quarter 2 | 6 July – 5 October 2026 | 5 November 2026 | Income & expenses summary |
| Quarter 3 | 6 October 2026 – 5 January 2027 | 5 February 2027 | Income & expenses summary |
| Quarter 4 | 6 January – 5 April 2027 | 5 May 2027 | Income & expenses summary |
| Final Declaration | Full 2026/27 tax year | 31 January 2028 | Complete year-end return |
The April 2026 mandate means digital record-keeping begins on 6 April 2026 — not just when the first submission is due in August. Every transaction from 6 April must be recorded in HMRC-approved software from day one.
The 2027/28 Quarterly Deadlines (Phase 1 & 2)
For the second MTD year — and the first year Phase 2 (£30,000+) is mandatory — the quarterly deadlines follow the same pattern:
| Submission | Period Covered | Deadline |
|---|---|---|
| Quarter 1 | 6 April – 5 July 2027 | 5 August 2027 |
| Quarter 2 | 6 July – 5 October 2027 | 5 November 2027 |
| Quarter 3 | 6 October 2027 – 5 January 2028 | 5 February 2028 |
| Quarter 4 | 6 January – 5 April 2028 | 5 May 2028 |
| Final Declaration | Full 2027/28 tax year | 31 January 2029 |
What Are the Penalties for Missing These Deadlines?
HMRC applies a points-based penalty system — miss a quarterly deadline and you receive one penalty point. Accumulate four points and a £200 financial penalty triggers, with further £200 fines for every subsequent late submission. There is no immediate £100 fine for a single missed deadline like under the old Self Assessment rules.
Read the full breakdown: MTD ITSA penalties explained →
HMRC confirmed a transitional grace period for the initial MTD rollout, but this applied to the setup period — the penalty system is now fully in effect for all Phase 1 filers. Missing the 5 August 2026 Q1 deadline earns a penalty point.
Can You Join MTD ITSA Voluntarily Before the Mandate?
If your income is below the current threshold — for example, between £30,000 and £50,000 — you are not yet mandated but can volunteer to join early. This can be advantageous if you want to trial the process before penalties apply or if your income is close to the threshold and may increase.
Read the full guide: Should you volunteer for MTD early? →
Never miss a deadline — AccTek tracks every one
AccTek handles every quarterly submission and your Final Declaration. You focus on your business; we handle the filing. All from £19.99/month.