MTD Deadlines - Do they need to be submitted ?

sidneyyoungblood

Found this online , does this mean that the MTD does not need to be submitted for the first year due to the soft landing ?

Note: While these quarterly submissions are legally required, HMRC has implemented a "soft landing" period for the first year, meaning no penalty points will be issued for missed or late quarterly updates. You will also need to submit your traditional Self Assessment return for the 2025/26 tax year by 31 January 2027. [1, 2, 3, 4, 5]

DRS1

I think that may be the case for quarterly submissions in 25/6 when it was the guinea pig year but I don't think it is the case for the first proper year of MTD (26/7).

Also if you have volunteered to do quarterly submissions for 25/6 I think you need to submit them before you can do the year end report. I am not sure you can do the old self assessment instead.

UKTaxHelper

To add a bit more precision to what DRS1 and LITRG said: the "soft landing" note applies to the 2024/25 and 2025/26 pilot years, when quarterly updates were voluntary testing, not the real thing. Once you're mandated in (April 2026 for the £50k+ group), HMRC's points-based penalty system applies properly, each missed quarterly update earns a point, and a financial penalty only kicks in once you hit 4 points. HMRC has said there will be a lighter touch on those individual points in year one of mandation specifically, but that's different from "you don't need to submit at all," the obligation itself starts on day one. The 31 January year-end Self Assessment deadline is unaffected either way.

LITRG

Hi sidneyyoungblood

We explain how the penalties work in the 2026/27 tax year on our website: https://www.litrg.org.uk/tax-nic/making-tax-digital-income-tax/making-tax-digital-penalties#1 Hope this information helps you.