The first Making Tax Digital quarterly update deadline is nearly here. If you are a sole trader or landlord who signed up for Making Tax Digital for Income Tax, the clock is ticking. HMRC has confirmed that the first quarterly update deadline for MTD for Income Tax is 7 August 2026, and more than 864,000 sole traders and landlords across the UK now fall within scope. Here is what you need to know, and what to do if you have not submitted yet.
Who Needs to Submit a Quarterly Update
Making Tax Digital for Income Tax became mandatory from April 2026 for sole traders and landlords with qualifying income over 50,000 pounds. If that applies to you, you should already be keeping digital records and using HMRC-recognised software to submit quarterly updates, rather than waiting until the end of the year to report everything in one go.
What the Quarterly Update Actually Involves
It is important to understand that a quarterly update is not a tax return. It is a short summary of your income and expenses for the period, sent to HMRC through compatible software, and it usually takes only a few minutes if your records are up to date. For most customers, the first quarterly update period covers 6 April 2026 to 5 July 2026, with some customers instead using calendar quarters from 1 April to 30 June. Either way, the submission deadline for this first update is 7 August 2026.
Do Not Worry About Getting It Perfect
HMRC has been keen to reassure people that no penalty points are being issued for late quarterly updates during the first year of MTD for Income Tax, so there is some breathing room if you are running slightly behind. That said, penalties still apply for late Self Assessment returns and late payments, and from the second year onwards, points-based penalties will apply to missed quarterly deadlines too, with a fixed penalty once four points build up. It is far better to get into the habit now while the pressure is lower.
What Happens After This First Deadline
Quarterly updates continue throughout the tax year, and importantly, they do not replace your Self Assessment tax return. You will still need to submit a full return and pay any tax owed by the usual 31 January deadline. Many people find that seeing an estimate of their tax bill after each quarterly update is actually helpful, as it gives an early indication of what to expect rather than a single surprise figure at the end of the year. HMRC has also confirmed that Making Tax Digital for Income Tax will extend to those earning over 30,000 pounds from April 2027, and over 20,000 pounds from April 2028, so it is worth planning ahead even if you are not yet in scope.
We Can Help You Stay Compliant
If you are not sure whether Making Tax Digital for Income Tax applies to you, have not yet signed up, or simply want someone to check your first quarterly update before it is submitted, Power Accountax is here to help. We support Southampton sole traders and landlords with software set up, ongoing bookkeeping and quarterly submissions, so you can meet every deadline with confidence. Contact us today if the 7 August deadline is approaching and you need a hand.
A Few Practical Tips
- Keep your bookkeeping up to date throughout the quarter rather than leaving it until the deadline approaches
- Double check that your software is on HMRC’s list of recognised MTD for Income Tax products
- If you have not signed up yet, do so as soon as possible rather than waiting until the deadline is imminent
- Use the tax estimate shown after each update to start setting money aside for your bill
- If you use an agent or accountant, make sure they have been added to your Making Tax Digital account so they can submit on your behalf