Making Tax Digital (MTD) for Income Tax is now underway for the first group of sole traders and landlords.
If your qualifying income from self-employment and property exceeded £50,000 during the 2024/25 tax year, you will generally be required to follow the new rules from 6 April 2026.
One of your main responsibilities is sending quarterly updates to HMRC.
The first deadline is now approaching:
7 August 2026
Here is what you need to know and how you can prepare.
What period does the first quarterly update cover?
If you use standard update periods, your first update will cover the period from:
6 April to 5 July 2026
Alternatively, those using calendar update periods will report figures covering 1 April to 30 June 2026.
Whichever update period you use, the submission deadline remains 7 August 2026.
Your software will combine the digital records you have kept during the period and submit totals for your relevant income and expense categories.
What information will you need to provide?
Your first quarterly update will include summary totals taken from your digital records.
Depending on your circumstances, this could include:
- Turnover and other business income
- Cost of goods and materials
- Wages and other staff costs
- Travel and vehicle expenses
- Rent, rates, utilities and insurance
- Repairs and maintenance
- Office and software costs
- Advertising expenses
- Bank charges and interest
- Accountancy, legal and professional fees
- Property income and allowable property expenses
HMRC will not receive copies of individual invoices or receipts through the quarterly update. Instead, it will receive totals for each relevant category.
You must submit separate quarterly updates for each self-employment and property business you operate.
What if you had no income during the period?
You must still submit a quarterly update if you did not receive any income or incur any expenses during the relevant period.
Your requirement to follow MTD is generally determined by your qualifying income from an earlier tax year. A temporary reduction in income during the current quarter does not automatically remove your reporting responsibilities.
Do the updates only cover each individual quarter?
Quarterly updates are cumulative.
This means each submission covers the period from the beginning of the tax year to the end of the latest update period.
For example, your second standard quarterly update will cover 6 April to 5 October, rather than only covering the three months from July to October.
This allows any corrections made to your digital records to be reflected in your next submission without requiring you to resubmit an earlier update.
How do you submit an MTD quarterly update?
Your quarterly update must be sent using software that is compatible with MTD for Income Tax.
This can be completed by you or by an accountant or tax agent acting on your behalf.
Compatible options include full accounting platforms and bridging software. The right choice will depend on how you currently manage your records, the number of transactions you process and the level of automation you need.
Before the deadline, you should make sure:
- You are registered for MTD for Income Tax
- Your compatible software is connected and authorised
- Your income and expenses are recorded digitally
- Transactions have been placed into the correct categories
- Missing invoices and receipts have been added
- Your figures have been reviewed before submission
Are there penalties for missing the first deadline?
HMRC has confirmed that it will not apply penalty points for late quarterly updates during the 2026/27 tax year.
However, quarterly updates are still a legal requirement. You will also need to submit any outstanding updates before you can complete your tax return.
It is therefore important to treat 7 August 2026 as a firm deadline and establish a reliable reporting routine from the beginning.
Don’t leave your preparation until August
The first quarterly deadline may feel some way off, but the reporting period ends on 5 July 2026 for those using standard periods.
Keeping your records updated now will give you time to identify missing information, correct errors and become comfortable with the new process before your submission is due.
If you are unsure whether MTD applies to you, what information you need to report or how to submit your first update, our team can help.
We can review your circumstances, support you with your digital records and help you prepare for the 7 August 2026 deadline.
Contact our team today for support with MTD for Income Tax.