The MTD ITSA Rollout — Confirmed Dates
MTD ITSA is being introduced in phases, with different start dates depending on your level of qualifying income. The phased approach is designed to give individuals time to prepare — but the first phase is now less than 12 months away.
| Phase | Qualifying Income Threshold | Mandatory From |
|---|---|---|
| Phase 1 | Over £50,000/year | 6 April 2026 |
| Phase 2 | Over £30,000/year | 6 April 2027 |
| Phase 3 | Over £20,000/year | TBC (likely April 2028) |
| Below £20,000 | — | Not currently planned |
The April 2026 mandate does not mean your first submission is due in April 2026. It means digital records must be kept from 6 April 2026 — the very first day of the tax year. Your first quarterly submission covering April–June 2026 is then due by 5 August 2026.
What You Must Do Before April 2026 — Step by Step
- Confirm your threshold position — calculate your gross qualifying income (rental + self-employment) from your 2024/25 tax return. If it exceeds £50,000, you are in Phase 1.
- Choose your MTD software — or engage AccTek, who will manage the software on your behalf. Software must be HMRC-approved and capable of submitting quarterly updates via the MTD API.
- Register with HMRC for MTD ITSA — this is done through your software or Government Gateway. AccTek handles this for all clients.
- Set up digital record-keeping — configure your software with bank feeds, income categories, and expense types. AccTek configures Xero specifically for your income sources.
- Begin keeping digital records from 6 April 2026 — every transaction from this date must be recorded digitally.
- Submit Q1 by 5 August 2026 — your first quarterly update covers 6 April to 5 July 2026.
The Full MTD ITSA Quarterly Deadline Calendar
| Quarter | Period Covered | Submission Deadline |
|---|---|---|
| Quarter 1 | 6 April – 5 July | 5 August |
| Quarter 2 | 6 July – 5 October | 5 November |
| Quarter 3 | 6 October – 5 January | 5 February |
| Quarter 4 | 6 January – 5 April | 5 May |
| Final Declaration | Full tax year | 31 January |
MTD ITSA vs Self Assessment — Timeline Comparison
| Old Self Assessment | MTD ITSA |
|---|---|
| One deadline: 31 January | Five deadlines: Aug, Nov, Feb, May, Jan |
| Records compiled at year end | Records kept digitally throughout the year |
| Tax position unknown until January | Running tax estimate updated every quarter |
| One large preparation task per year | Smaller, regular tasks spread across the year |
What Happens If You Are Not Ready by April 2026?
HMRC will apply its new points-based penalty system to late or missing quarterly submissions. Each missed deadline earns a penalty point. Accumulate four points and a £200 financial penalty is triggered, with further £200 penalties for every subsequent late submission.
Beyond penalties, there is a practical risk: trying to set up MTD software, configure income categories, and catch up on months of records simultaneously is significantly more difficult than preparing in advance. AccTek recommends beginning preparation at least 3–6 months before your phase start date.
Can You Join MTD ITSA Early (Voluntarily)?
Yes. HMRC’s voluntary sign-up for MTD ITSA is open now. Joining early has advantages: you can iron out any software or process issues before penalties apply, and your accountant (and AccTek clients) benefit from having records properly structured from the outset rather than retrospectively.
What About MTD for Partnerships?
General partnerships are not currently included in the April 2026 or April 2027 mandates. HMRC has indicated that partnerships will be brought into MTD ITSA at a later date, but no confirmed timeline has been published. Individual partners may still be personally subject to MTD ITSA if their other income sources (rental, sole trade) exceed the threshold.
Practical Example: Planning Your MTD Timeline
David is a landlord with gross rental income of £62,000 per year. Here is a realistic preparation timeline for him:
- October 2025: Engage AccTek; confirm Phase 1 position; begin Xero setup
- November 2025: AccTek registers David for MTD ITSA with HMRC via Government Gateway
- January 2026: File final Self Assessment return for 2024/25 in the traditional way
- 6 April 2026: Begin keeping all records digitally in Xero from day one
- 5 August 2026: AccTek submits David’s first quarterly update (Q1: Apr–Jun 2026)
- Ongoing: Quarterly submissions handled by AccTek every three months
- 31 January 2027: AccTek files David’s Final Declaration for 2026/27
Frequently Asked Questions
Get ahead of the April 2026 deadline
AccTek sets up your MTD software, registers you with HMRC, and handles every quarterly submission — from £19.99/month.