Making Tax Digital: Your First Submission Deadline

Key Takeaways

• The first Making Tax Digital (MTD) for Income Tax quarterly update is due by 7th August 2026 for eligible self-employed individuals and landlords.

  
  

• Your quarterly update should include your total income and allowable expenses for the reporting period and be submitted using compatible MTD software.

  
  

• Although there will be no penalties for late submissions for quarterly updates during the first year, it is important to get into good habits and submit on time.

Preparing for your first MTD submission

Making Tax Digital (MTD) for Income Tax is one of the biggest changes to the UK tax system in recent years. From 6th April 2026, many self-employed individuals and landlords are now required to keep digital records and submit quarterly updates to HMRC using compatible software.

With the first quarterly update due by 7th August 2026, now is the time to understand what is required. Even if you are not affected this year, the income threshold will reduce in future years, so it is worth becoming familiar with the new rules now.

What is a quarterly update?

A quarterly update is a summary of your business or property income and allowable expenses that is submitted to HMRC every three months using compatible MTD software.

Rather than calculating your final tax bill, quarterly updates give HMRC an overview of your finances throughout the tax year while allowing you to keep track of your tax position as your income changes.

Each quarterly update should include; total business income, rental income (if applicable), total allowable business expenses and total allowable property expenses. You don’t need to submit individual invoices or receipts, but you must keep digital records to support the figures you report.

Once your update has been submitted, HMRC will update your records and you will receive confirmation that your submission has been accepted. You will then be able to view an estimate of your Income Tax due on your self-employment and property income. Your payment dates will stay the same, the only thing that has changed is how often you will need to report.

Who needs to submit?

Making Tax Digital currently applies to self-employed individuals and landlords whose gross income exceeds £50,000 in the 2024/25 tax year.

Before preparing for your first submission, it is important to confirm your income for the 2024/25 tax year so you know whether the new rules apply to you now. It is also worth checking you 2025/26 income, as the threshold drops to £30,000 from April 2027, so you may need to prepare for MTD sooner than you think.

Getting ready to submit

Before submitting your first quarterly update make sure you have:

• Confirmed your qualifying income for the 2024/25 tax year

• Up-to-date digital records of your income and expenses

• Compatible MTD software ready to submit your update

• Checked that your records are complete and accurate

Quarterly updates must be submitted directly to HMRC using compatible MTD software. If you already work with a bookkeeper or accountant, they can submit your updates on your behalf if they are authorised to act for you.

If you are both self-employed and a landlord, you need to report both income sources through separate submissions, so keeping accurate records for each throughout the year is essential.

Key submission dates

If you follow the standard reporting periods, your quarterly updates are due on the following dates:

Reporting Period	Submission Deadline
Quarter 1	7 August 2026
Quarter 2	7 November 2026
Quarter 3	7 February 2027
Quarter 4	7 May 2027

Each quarterly update is cumulative, meaning it includes your income and expenses from the beginning of the tax year to the end of that reporting period. This method means that you can correct earlier quarters in later submissions.

Do you still need to complete a self-assessment?

Making Tax Digital does not remove the need for an annual, end-of-year reconciliation of your tax position. Instead, your traditional Self-Assessment tax return is replaced by a Final Declaration, submitted through your MTD software. This confirms your annual income, lets you claim any available tax reliefs and allowances, and calculates your final tax liability. The deadline remains as the 31st of January following the end of the tax year.

Quarterly updates simply provide HMRC with regular information throughout the year and form part of the overall reporting process.

Are there penalties for missing the deadline?

HMRC has confirmed that there will be no late submission penalties for quarterly updates during the 2026/27 tax year while taxpayers adapt to the new system.

Although this provides some flexibility during the transition, it is still important to submit your updates on time and become familiar with the new reporting process before penalties are introduced in future years. However, it is worth noting that penalties for late payments remain.

Your next steps

The first quarterly update deadline of 7th August 2026 is fast approaching, so now is the ideal time to make sure that you are prepared.

If you are unsure whether Making Tax Digital applies to you, need help choosing the right software or would like support submitting your first quarterly update, SJC Finance Team is here to help.

Get in touch with our team today and we will guide you through the process, helping you stay compliant, avoid unnecessary stress and feel confident ahead of your first submission.

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