Yes, if you joined Making Tax Digital for Income Tax on 6 April 2026, you still file a normal Self Assessment tax return for 2025/26 by 31 January 2027. MTD only covers the 2026/27 tax year onwards, so in your first MTD year you are running the old system and the new one side by side. This guide explains what is due, when, and how to keep the two apart without missing anything.
Key takeaways
- Your 2025/26 return is filed the usual way, online by 31 January 2027.
- MTD quarterly updates for 2026/27 are due 7 August, 7 November, 7 February and 7 May.
- Your first MTD tax return, for 2026/27, is due by 31 January 2028.
- There are no penalties for late quarterly updates in 2026/27, but you must still send them.
- Payment dates do not change: 31 January and 31 July.
What does "MTD year one" mean?
MTD year one is the first tax year in which you must keep digital records and send quarterly updates through compatible software. For people with qualifying income over £50,000 in 2024/25, that first year is 2026/27, which began on 6 April 2026. The next groups follow on fixed dates: those with qualifying income over £30,000 in 2025/26 join from 6 April 2027, and those over £20,000 in 2026/27 join from 6 April 2028. Our guide to MTD eligibility explains how the thresholds work.
The point that catches people out is that MTD is not backdated. It applies from your start date forward. Any tax year that ended before you joined is still dealt with under the existing Self Assessment rules, including the return, the deadline and the penalties. GOV.UK's guidance on using Making Tax Digital for Income Tax sets out the new obligations.
The two systems side by side
| 2025/26 (before MTD) | 2026/27 (MTD year one) | |
|---|---|---|
| How you report | One Self Assessment return | Four quarterly updates plus a tax return through software |
| Filing deadline | 31 January 2027 online | Quarterly by 7 Aug, 7 Nov, 7 Feb, 7 May; tax return by 31 January 2028 |
| Records | Any accurate format | Digital records in compatible software or bridged spreadsheets |
| Late filing penalties | Existing Self Assessment penalties | No penalties for late quarterly updates in 2026/27; points-based rules for the tax return |
| Payment | Balancing payment by 31 January 2027 | Payments on account 31 January and 31 July 2027; balance by 31 January 2028 |
What is due between now and January 2027
If you are in the first MTD group, the next few months are busy. Your first quarterly update, covering 6 April to 5 July 2026, was due by 7 August 2026. The second, covering 6 July to 5 October 2026, is due by 7 November 2026. Then comes your 2025/26 Self Assessment return and payment on 31 January 2027, followed by the third quarterly update, for 6 October 2026 to 5 January 2027, by 7 February 2027. If you chose calendar quarters, your period end dates differ slightly, but the submission deadlines are the same; see our guide to the calendar quarters election.
GOV.UK's penalties guidance for MTD for Income Tax confirms there are no penalties for missing a quarterly update deadline for 2026/27, but also that you still need to send your quarterly updates before you can submit your tax return. Treat the deadlines as real: catching up four quarters in one go in January 2028 is far harder than sending one at a time.
Step-by-step: getting through year one
- Confirm your start date. Check your HMRC online account to confirm MTD for Income Tax has been added and from which tax year.
- Separate your records by tax year. Keep 2025/26 paperwork, which ends on 5 April 2026, apart from 2026/27 digital records.
- Send the 7 November quarterly update. Make sure income and expenses from 6 July to 5 October 2026 are entered and categorised.
- Prepare the 2025/26 return. Gather your income, expense totals and any other income such as interest or employment, and file online well before 31 January 2027.
- Budget for 31 January 2027. Allow for the 2025/26 balance and, if it applies, your first payment on account for 2026/27.
- Keep the quarterly rhythm going. Diary 7 February and 7 May 2027, then the 2026/27 tax return by 31 January 2028.
Worked example (illustrative example)
Illustrative example only, not a real person. Sam is a self-employed electrician who also rents out a flat. In 2024/25, Sam's qualifying income from self-employment and property was £62,000, so Sam joined MTD for Income Tax from 6 April 2026.
Sam's calendar for the year ahead looks like this. By 7 November 2026, Sam sends a quarterly update for each income source, one for the electrical business and one for the flat, covering 6 July to 5 October 2026. By 31 January 2027, Sam files the 2025/26 Self Assessment return online in the usual way, using the paper records and spreadsheet totals already kept for that year, and pays the balance due plus the first payment on account for 2026/27. By 7 February and 7 May 2027, Sam sends the remaining quarterly updates. By 31 July 2027, Sam makes the second payment on account. Finally, by 31 January 2028, Sam submits the 2026/27 tax return through MTD software and pays any balance.
The key point for Sam is that January 2027 has nothing to do with MTD software: it is the last old-style return. Sam's software only needs to hold data from 6 April 2026.
Common mistakes in the first MTD year
- Assuming MTD replaces the January 2027 return. It does not. The 2025/26 return is still due and still carries the usual penalties if late.
- Mixing tax years in the software. Entering pre-April 2026 transactions into MTD software can distort your first quarterly update.
- Ignoring quarterly updates because there is no penalty. They are still required before you can file your 2026/27 tax return.
- Thinking quarterly updates mean quarterly payments. Payment dates are unchanged.
- Forgetting agent access. Your accountant may be authorised for Self Assessment but not yet for MTD. Our guide to MTD agent authorisation explains the difference.
Year-one checklist
- MTD start date confirmed in your HMRC online account
- Compatible software or bridging software set up for each income source
- Quarterly update for 6 July to 5 October 2026 sent by 7 November 2026
- 2025/26 records gathered and return filed online by 31 January 2027
- Money set aside for the 31 January 2027 payment
- Remaining 2026/27 quarterly deadlines in your diary
- Agent authorised for both Self Assessment and MTD, if you use one
How we can help
We are a London-based specialist MTD and gig-economy accounting practice on fixed monthly fees. Our MTD compliance service starts from £49 per month and covers your quarterly updates, and we can file your final pre-MTD return alongside it. See our MTD compliance service, read about the MTD final declaration, check our pricing, or contact us to get your first MTD year on track.
Frequently Asked Questions
I joined MTD in April 2026. Do I still file a tax return in January 2027?
Yes. MTD for Income Tax started for you with the 2026/27 tax year, which runs from 6 April 2026 to 5 April 2027. Your 2025/26 tax year is not covered by MTD, so you file that year's Self Assessment return in the usual way. The online deadline is 31 January 2027, and any tax owed is also due by that date.
When is my first MTD final declaration due?
Your first tax return under MTD covers the 2026/27 tax year and is due by 31 January 2028. You submit it through MTD-compatible software after you have sent your quarterly updates for that year. GOV.UK says you must send your quarterly updates before you can submit your tax return, so keep them up to date even though there is no penalty for lateness in 2026/27.
Is there a penalty if I miss a quarterly update in my first year?
GOV.UK says there are no penalties for missing a quarterly update deadline for the 2026/27 tax year. That is a soft landing, not an exemption. You still have to keep digital records and send every quarterly update before you can submit your tax return, and points-based penalties apply to quarterly updates from 2027/28 onwards.
Do my payment dates change under MTD?
No. Quarterly updates are reports, not payments. You still pay Self Assessment tax by 31 January, and if you make payments on account the second one is still due by 31 July. On 31 January 2027 you will normally pay any balance for 2025/26 plus your first payment on account for 2026/27.
Can my accountant file both returns for me?
Yes. An agent can file your 2025/26 Self Assessment return and handle your MTD quarterly updates and final declaration, provided you have authorised them for both. MTD for Income Tax uses its own agent authorisation, so check your accountant has the right access before the 7 November 2026 quarterly deadline.
Related reading
How Berber Accounts & Tax helps
We are a London-based, specialist gig-economy and MTD accounting practice working with fixed monthly fees. If you would like this handled for you rather than doing it yourself, we can help.
Schedule a consultation →Written by the Berber Accounts & Tax team, 124 City Road, London EC1V 2NX, United Kingdom.
Last reviewed: 23 October 2026.
This article is general information, not personal tax advice. Speak to a qualified accountant about your own circumstances before acting on it.