28 Aug Making Tax Digital for Income Tax: What to Submit Before Your First Quarterly Deadline on 7 August 2026

Did the first Making Tax Digital (MTD) update pass you by, or are you unsure whether your submission included everything HMRC needed? Quarterly reporting is a change from annual filing. The MTD Income Tax first quarterly deadline was 7 August 2026, but you can still catch up. Here is what was due and what comes next.

Need help getting your first MTD update in order?

We can help you review your records and discuss suitable accounting and bookkeeping services. Call CTMP Accountants on 0208 776 0200 or email info@ctmp.co.uk to discuss your next steps.

MTD ITSA quarter 1 submission: who needed to file?

MTD for Income Tax became mandatory from 6 April 2026 for individuals whose combined qualifying gross income from self-employment and property exceeded £50,000 on their 2024/25 tax return, subject to exemptions. The threshold concerns turnover, not profit.

For example, £34,000 from a trade plus £20,000 in rent makes £54,000 of qualifying income. If you have both activities, you need the relevant quarterly updates for each income source.

What to submit in an MTD quarterly update

Your first update needed a digital summary of income and expenses for the relevant period, sent through compatible software. HMRC requires the period dates and totals under the applicable categories, rather than individual invoices or scanned receipts.

Traders report categories such as turnover, purchases, travel, wages and premises costs. A landlord would report rental income and relevant property expense categories, such as insurance and repairs. Keep digital transaction records to check your totals.

Before submitting, check that you have:

• Recorded income and expenses for the correct period.
• Assigned transactions to the relevant categories.
• Prepared an update for each business and relevant property income category.
• Connected your compatible software to HMRC and checked the figures it generates.

You do not need to make final tax adjustments at this stage. Even if there was no activity, an update is still required. It is neither a tax return nor a quarterly tax payment.

Making Tax Digital deadlines for sole traders and landlords

Under standard reporting periods, the first update covered 6 April to 5 July 2026. Those using calendar periods covered 1 April to 30 June instead; both had the same 7 August deadline.

The remaining deadlines for the 2026/27 tax year are 7 November 2026, 7 February 2027 and 7 May 2027. Importantly, updates are cumulative: the November submission includes figures from the start of the reporting year, not just the latest three months. This also allows corrected records to flow into the subsequent update.

Choose calendar periods in your software before submitting your first update, as you cannot switch reporting periods partway through that tax year afterwards.

HMRC MTD penalty rules for the first quarter of 2026

Missed 7 August? HMRC will not issue late-submission penalty points for quarterly updates in the 2026/27 tax year. You must still file.

Complete any outstanding update and maintain your records. All quarterly updates must be submitted before you can file your 2026/27 tax return, due by 31 January 2028. Late tax returns can still attract penalty points.

Choosing MTD quarterly update software with a Bromley or Kent accountant

Your software must create digital records, send quarterly updates and support your year-end return. If spreadsheets suit you, HMRC permits compatible bridging software that connects those records to its systems. Existing MTD VAT software is not automatically suitable for Income Tax, so check its functionality.

At CTMP, we provide accounting software advice and training alongside tax and bookkeeping support. Our chartered accountants supporting Bromley can help you consider a practical setup without adding unnecessary complexity.

Getting your next quarterly update right

Agree who records transactions, checks the totals and submits each update. Check this if you have rental and trading income. If MTD changes the level of support you need, consider an accounting fee review in Croydon.

The immediate priority is to catch up on August if necessary, keep your records current and prepare the cumulative update due on 7 November.

Talk to CTMP about MTD for Income Tax

For help with digital records or reporting, call 0208 776 0200 or email info@ctmp.co.uk. You can also contact CTMP Accountants online. We will be happy to discuss your circumstances.

Frequently asked questions

Do I upload receipts with my MTD quarterly update?

No. HMRC receives category totals, not individual receipts. Keep supporting digital records for your bookkeeping.

Do I pay Income Tax every quarter under MTD?

No. A quarterly update provides information and an estimated tax position; normal payment deadlines remain separate.

Can I submit the August 2026 update late?

Yes. HMRC is not applying late quarterly-update penalty points for 2026/27, but you must still submit it.

Do landlords and sole traders submit the same update?

They follow the same deadlines, but self-employment and property information is reported separately.

When is the first annual MTD Income Tax return due?

The return for 2026/27 is due by 31 January 2028. This is separate from your 2025/26 Self Assessment return.