Overview
- HMRC is posting mandation notices now to people whose 2024–25 returns show more than £50,000 in gross self‑employment or property income, who must choose compatible software and sign up.
- Quarterly digital updates begin on 6 April 2026 with the first due on 7 August, while the final pre‑MTD Self Assessment for 2025–26 remains due by 31 January 2027.
- Late‑submission penalties use a points system, but HMRC will not apply points for late quarterly updates during the first 12 months, with £200 fines only after four points in later years.
- Exemptions total 661 granted from 1,271 applications as of 31 January, and those who ended property income in 2024–25 can avoid mandation by declaring cessation on the SA105.
- Uptake is building with more than 37,000 registrations and over 13,500 test quarterly updates submitted, as HMRC urges taxpayers to prepare now.