Making Tax Digital for Income Tax: first quarterly deadline is 7 August 2026

Making Tax Digital for Income Tax is now live for the first group of sole traders and landlords. If you are within scope, the first quarterly update must be submitted to HMRC by today, 7 August 2026. This update covers your income and expenses for the first three months of the 2026/27 tax year.

This is an important reminder for anyone who has already signed up, and also for anyone who may be within scope but has not yet registered. The quarterly update is not a tax return and no tax payment is due on the basis of the quarterly submission. Instead is a short digital summary sent to HMRC through compatible software.

Who needs to use MTD for Income Tax now?

You need to use Making Tax Digital for Income Tax from 6 April 2026 if all of the following apply:

you are a sole trader or landlord registered for Self Assessment;
you receive income from self-employment, property, or both; and
your qualifying income was more than £50,000 in the 2024/25 tax year.

Qualifying income means your gross income before expenses are deducted. If you have both self-employment and property income, these are added together when checking the threshold.

What do you need to submit by 7 August?

Your first quarterly update should be sent through MTD-compatible software (which includes full accounting software such as Xero and spreadsheet-based options such as Excel with bridging software). Or your accountant may prepare and submit on your behalf. It will include totals for the relevant income and expense categories for each self-employment or property business. HMRC does not receive copies of individual receipts, invoices or bank transactions as part of the quarterly update.

Please be aware that you still need to send an update to HMRC even if you have had no income or expenses during the quarter.

Next quarterly deadlines

For those using the standard tax-year quarters, the key quarterly update deadlines are:

7 August 2026 — first quarterly update (covering 6 April to 5 July 2026)
7 November 2026 — second quarterly update; (6 July to 5 October 2026)
7 February 2027 — third quarterly update; 6 October 2026 to 5 January 2027)
7 May 2027 — fourth quarterly update (6 January to 5 April 2027)

You will still need to submit your annual Self Assessment tax return, which should take into account any final adjustments, reliefs and other income. This may be completed by your accountant. The tax return filing and payment deadline remains 31 January following the end of the tax year.

If you have not yet registered

If you think you are within scope and have not yet signed up, please this so soon as possible before penalties apply. If you use an accountant or tax agent, they can sign you up on your behalf.

Before signing up, you should:

check whether your qualifying income brings you within MTD for Income Tax;
make sure you are registered for Self Assessment and have submitted a tax return in the last two years;
choose software that is compatible with Making Tax Digital for Income Tax;
start keeping digital records of your self-employment and/or property income and expenses; and
speak to us if you would like help checking your position or getting registered.

Will penalties apply if the first quarterly update is late?

HMRC have advised that they will not apply penalty points for late quarterly updates during the first year for people who need to use MTD for Income Tax from 6 April 2026, HMRC. However, the requirement to submit the updates still applies, so we recommend maintaining good records and filing on time wherever possible.

It is also important to remember that the normal Self Assessment tax return deadline and payment deadline still apply but these are currently separate from the requirement for quarterly updates.

How RPG can help

We appreciate that this is a significant change, particularly if you are used to dealing with your tax affairs once a year.

If you have not yet registered for MTD or not yet submitted your first return, please contact us and we will help you get up to date. Please also contact us if you will become eligible for MTD for Income Tax from April 2027 (details here)

We can help you understand whether MTD for Income Tax applies to you, choose suitable software, set up digital record keeping and manage your quarterly submissions.

If you would like us to deal with the quarterly updates on your behalf, please contact us so that we can make sure everything is in place as soon as possible.

Please speak to us if you are unsure

If you have any queries, or if you are not sure whether you need to register, please contact us straightaway. You can call us on 0161 608 0000 or email info@rpg.co.uk.

Carolyn Dutton, Group Board Director and Head of Business Services.