Making Tax Digital for Income Tax, and where Account stands
Account is built to prepare each client's quarterly updates from the ledger, for a person to review. MTD ITSA filing from the 2027-28 tax year; prepare and export 2026-27 figures today.
Three start dates, set by qualifying income
Making Tax Digital for Income Tax applies to sole traders and landlords registered for Self Assessment whose qualifying income is over a threshold. Qualifying income is turnover from self-employment and property, before expenses, taken from the Self Assessment return for a base year.
| Qualifying income over | In tax year | Starts |
|---|---|---|
| Over £50,000 | In tax year2024 to 2025 | Starts6 April 2026 |
| Over £30,000 | In tax year2025 to 2026 | Starts6 April 2027 |
| Over £20,000 | In tax year2026 to 2027 | Starts6 April 2028 |
Source: HMRC guidance on gov.uk
An individual partner's share of partnership profit does not count towards qualifying income. HMRC has said it will set out the timeline for partnerships at a later date.
Making Tax Digital for Income Tax gives every practice a reason to rethink the whole arrangement.
One return becomes five filings
For a client with one business: four quarterly updates, due on 7 August, 7 November, 7 February and 7 May, then the final declaration, which is the end-of-year tax return. Each update covers the tax year from 6 April to the end of its update period, not just the last three months, so a correction flows into the next update.
- Update 1Due 7 AugustYear to date, from 6 April
- Update 2Due 7 NovemberYear to date, carried forward
- Update 3Due 7 FebruaryYear to date, carried forward
- Update 4Due 7 MayYear to date, carried forward
- ThenFinal declarationThe end-of-year tax return
HMRC has said: 'There are no penalties for missing a quarterly update deadline for the 2026 to 2027 tax year.' From 2027 to 2028, each missed update earns a penalty point, and four points bring a £200 penalty. Late payment penalties are separate, and they do apply from 2026 to 2027.
Source: HMRC guidance on gov.uk, 'Send quarterly updates' and 'Penalties for Making Tax Digital for Income Tax'. This page summarises it and is not tax advice.
What Account is built to do
Keep each client's digital records in the ledger and prepare from them.
If something is missing, Account stops and says what, rather than guessing.
Quarterly drafts
Each cumulative update drafted from the posted ledger within 30 days of its due date, sent to the client to approve in the portal, then signed off by a person. The draft is a draft: it cannot be filed until someone other than the preparer has reviewed it, every review point is cleared and the client has approved it.
Mandate radar
Reads your own Self Assessment returns, using HMRC's thresholds and base years, and shows which clients are mandated and from when. It is the practice's reading, never HMRC's own decision about a client.
Agent authorisations
Tracked for each client, with a warning before one ends. Up to 20 clients at a time can be invited. HMRC offers agents no sign-up service to call, so sign-up is made in your HMRC services account; the radar links to HMRC's guidance and records your tick.
The same review
Review points and sign-off by two people apply to a quarterly update as they do to VAT. The final declaration is refused while any review point on it is open.
Exactly where filing stands
Filing status
- Position
- Account is being built to file to HMRC under Making Tax Digital. Filing is not switched on yet.
- Tested
- What exists has been tested against simulated HMRC responses.
- Dates
- MTD ITSA filing from the 2027-28 tax year; prepare and export 2026-27 figures today. HMRC has said it is no longer accepting production credential requests for new 2026 to 2027 quarterly update products.
We will say plainly on this page when filing is live.
What a practice can do now
Work out which clients start on 6 April 2027: those with qualifying income over £30,000 on the 2025 to 2026 return. Account's radar does this from returns prepared in Account.
Invite agent authorisations early, so a filing is not held up by one. Sign-up itself is made in your HMRC services account.
Not tax advice
This page summarises HMRC's published guidance. It is not tax advice. Check which clients fall into which cohort against HMRC's thresholds on gov.uk.
Where Account stands
Early access by invitation. Tell us about your practice and we will be in touch.