Making Tax Digital (MTD) for Income Tax will become mandatory for many people who complete a Self Assessment tax return from 6 April 2026. More taxpayers will be brought into the system in 2027 and 2028.

At the 2025 Budget, the government shared further details about how this rollout will work.

For the 2026/27 tax year, HMRC has confirmed that late filing penalties will not apply to quarterly updates.

This flexibility does not apply to the annual tax return. The 2026/27 tax return must still be submitted by 31 January 2028, and all quarterly updates must be filed before the annual return can be completed.

Who won’t need to join until April 2027?

Previously, HMRC confirmed that taxpayers who currently report income on the SA109 Self Assessment page (for example, those using the residence or remittance basis) would not need to follow MTD rules until April 2027.

The 2025 Budget has now extended this delay to additional groups, including:

• People receiving income from trusts or estates
• Individuals who use averaging rules, such as farmers and creative artists
• Those receiving qualifying care income
• Non-UK resident entertainers or sportspeople

In addition, anyone who is under a deputyship will be fully exempt from Making Tax Digital for Income Tax.