Complete Guide on First Making Tax Digital Quarterly Update Deadline 2026

We are increasingly hearing from sole traders and landlords who know that Making Tax Digital started in April but remain unsure what must be sent to HMRC in August. The first making tax digital quarterly update must be submitted by 7 August 2026 by individuals who entered MTD for income tax on 6 April 2026.

HMRC says more than 864,000 sole traders and landlords are within the first phase of the system. The update is not a completed tax return, and no tax payment is due solely because the quarterly submission has been made.

Quick Answer

• The first quarterly update is due by 7 August 2026.
• It normally covers records from 6 April to 5 July 2026.
• Those using calendar quarters will report from 1 April to 30 June 2026.
• The update contains cumulative income and expense category totals for each relevant business.
• HMRC will not issue quarterly-update penalty points during 2026/27, but all four updates must still be submitted before the annual tax return can be filed.

What Is the First Making Tax Digital Quarterly Update?

The first Making Tax Digital quarterly update is a digital summary of income and expense records for the opening part of the 2026/27 tax year. It must be sent to HMRC through compatible software by 7 August 2026.

It is a summary rather than a tax return. Taxpayers do not normally need to make year-end accounting adjustments, capital allowance claims, or other tax adjustments before submitting it.

The software adds together the digital records entered for each income and expense category. HMRC receives category totals, not individual invoices, receipts, or bank transactions.

Who Must Submit an Update by 7 August 2026?

The deadline applies to sole traders and landlords who were required to begin using MTD for income tax on 6 April 2026. This generally means all the following conditions apply:

• The individual is registered for self-assessment.
• They receive income from self-employment, property, or both.
• Their qualifying income was more than £50,000 in the 2024/25 tax year.
• They do not have an automatic or HMRC-approved exemption.

HMRC should have written to taxpayers it identified as being within scope. However, not receiving a letter does not remove the responsibility to check qualifying income and sign up.

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How Is Qualifying Income Calculated for MTD?

Qualifying income is the total gross income from self-employment and property before expenses are deducted. Income from several sole trades and property businesses is combined when testing the threshold.

The phased thresholds are

Income Shown on Tax Return	Qualifying Income	MTD Start Date
2024/25	More than £50,000	6 April 2026
2025/26	More than £30,000	6 April 2027
2026/27	More than £20,000	6 April 2028

These are gross-income thresholds, not profit thresholds. A business can therefore be within MTD even where deductible expenses leave a comparatively small taxable profit.

Qualifying income does not normally include:

• Employment income taxed through PAYE
• Dividends, including dividends from the individual’s own company
• State or private pension income
• An individual partner’s share of partnership profits

A person’s share of income from a jointly owned property normally counts. For example, if a jointly owned property generates £50,000 of rent and two owners are entitled to equal shares, each person would generally have £25,000 of qualifying property income.

Worked Example

A sole trader reported £36,000 of gross trading income and £18,000 of gross rental income in 2024/25.

Their combined qualifying income is £54,000. They are therefore within the first MTD phase, even if business and property expenses reduce their total taxable profit below £50,000.

What Must Be Included in Quarterly Updates for Making Tax Digital?

The quarterly updates for making tax digital must include cumulative totals for the income and expense categories recorded in compatible software. A separate update is generally required for each self-employment and property business.

The submission may therefore contain totals for categories such as

• Sales or business income
• Rental income
• Staff costs
• Travel costs
• Premises expenses
• Professional fees
• Repairs and maintenance
• Other allowable business expenses

The categories broadly follow those used for self-assessment. The first update does not require every figure to be final or adjusted for tax purposes.

Even where a business has received no income and incurred no expenses during the period, an update must still be submitted to tell HMRC that there was no activity.

For jointly-let properties, HMRC allows taxpayers to include either income and expenses or income only during the quarterly cycle. Expenses omitted from the quarterly updates must be added after the tax year by resending the fourth update before submitting the annual tax return.

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Which Period Does the First Update Cover?

The standard first update covers cumulative records from 6 April to 5 July 2026. Taxpayers using calendar update periods report records from 1 April to 30 June 2026 instead.

The deadline is 7 August 2026 under either method.

Reporting Method	First Update Period	Submission Deadline
Standard tax-year periods	6 April to 5 July 2026	7 August 2026
Calendar periods	1 April to 30 June 2026	7 August 2026

Calendar periods may be more practical where accounts are prepared to 31 March. They must be selected in the software for each income source before the first update is submitted.

Once the first update has been sent, the reporting-period method cannot be changed for that tax year.

Which Making Tax Digital Submission Dates Follow the First Deadline?

The four Making Tax Digital submission dates for the 2026/27 tax year are 7 August 2026, 7 November 2026, 7 February 2027 and 7 May 2027.

Each update is cumulative. This means the second standard update covers 6 April to 5 October, rather than covering only the three months from July to October.

Update	Standard Cumulative Period	Calendar Cumulative Period	Deadline
First	6 April to 5 July 2026	1 April to 30 June 2026	7 August 2026
Second	6 April to 5 October 2026	1 April to 30 September 2026	7 November 2026
Third	6 April 2026 to 5 January 2027	1 April to 31 December 2026	7 February 2027
Fourth	6 April 2026 to 5 April 2027	1 April 2026 to 31 March 2027	7 May 2027

The 2025/26 self-assessment return must still be submitted through the usual process by 31 January 2027. The first annual return completed through the MTD system, covering 2026/27, will be due by 31 January 2028.

Can Mistakes Be Corrected After an Update Is Sent?

Mistakes can normally be corrected in the digital records and reflected in the next cumulative quarterly update. Taxpayers do not generally need to reopen and resubmit every earlier update.

For example, if an invoice dated in May is entered incorrectly and corrected in September, the cumulative update sent in November should contain the corrected year-to-date figures.

This cumulative method is an important distinction. Some explanations describe each submission as a completely separate three-month return, but HMRC’s guidance confirms that each update runs from the beginning of the tax year or calendar reporting year to the end of the relevant period.

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What Happens If the Making Tax Digital First Quarter Deadline Is Missed?

HMRC will not apply quarterly-update penalty points for late submissions during the 2026/27 tax year. However, the updates remain legally required and must all be submitted before the annual MTD tax return can be completed.

The first-year concession does not protect taxpayers from:

• Penalties for a late annual tax return
• Late-payment penalties
• Interest on tax paid after the payment deadline
• Administrative problems caused by incomplete digital records

From the tax years after 2026/27, missing a quarterly deadline will normally result in one penalty point. The threshold is four points, at which stage a £200 penalty is charged. A further £200 penalty can apply for each later missed deadline while the taxpayer remains at the threshold.

Only one point can be issued for a particular deadline, even where a person has several businesses and submits several quarterly updates late. MTD for Income Tax penalty points are also separate from any penalty points arising under MTD for VAT.

What Should You Do Before Submitting the First Update?

Taxpayers should check their registration, software connection and digital records before pressing submit. The update should be generated from records created since the start of the applicable reporting period.

A practical review should include:

1. Confirm that you are within MTD. Recheck the gross self-employment and property income shown on the 2024/25 return.
2. Complete the MTD sign-up process. Being registered for self-assessment does not, by itself, complete MTD registration.
3. Authorise compatible software. HMRC provides a software finder for MTD for Income Tax.
4. Check every relevant income source. A separate update may be required for each trade and property business.
5. Update digital records. Record income and expenses from 6 April, or from 1 April when using calendar periods.
6. Review the cumulative totals. Look for duplicate bank transactions, omitted invoices, personal costs and incorrect category allocations.
7. Retain submission confirmation. Keep evidence showing when the update was accepted by HMRC.

Taxpayers can continue to use spreadsheets, provided suitable bridging software creates the required digital connection and submits the information to HMRC. A spreadsheet on its own cannot send an MTD update.

Further guidance is available in Apex Accountants’ article on the £50,000 MTD rule for sole traders and landlords.

Who Can Be Exempt From the First Quarterly Deadline?

Some individuals and entities are automatically exempt, while others must apply to HMRC. An exemption from MTD changes the reporting method but does not normally remove the requirement to report taxable income through self-assessment.

Automatic exemptions include certain trusts, personal representatives, non-resident companies filing an SA700 and individuals without a National Insurance number before the start of the relevant tax year. Partnerships are not currently required to use MTD for income tax, although the government intends to set out their timetable separately.

A person may apply for digital-exclusion exemption where it is not reasonable for them to use software because of factors such as:

• Age, disability or a health condition
• Religious beliefs incompatible with digital record-keeping
• Lack of internet access because of location, with no suitable alternative available

HMRC considers applications individually. Cost, limited experience with software or having only a small number of transactions is not normally enough on its own. A more detailed explanation is available in Apex Accountants’ guide to MTD exemptions.

FAQs About MTD Quarterly Update Deadline

Is Any Tax Payable on 7 August 2026?

No tax payment becomes due simply because the first quarterly update is submitted. The update provides income and expense totals that can generate an estimated tax position, but the normal annual tax-payment deadlines continue to apply.

Can an Accountant Submit the Quarterly Update?

Yes. An authorised accountant or tax agent can sign a client up, manage digital records and submit quarterly updates through compatible software. The taxpayer remains responsible for providing complete and accurate information to the agent.

Do I Need to Submit an Update When There Was No Income?

Yes. HMRC requires a quarterly update even where no income was received and no expenses were incurred during the latest period. The software should submit a nil or no-activity update for the relevant business.

Can I File the Update Through My Personal Tax Account?

No. Quarterly updates must be submitted through software that works with MTD for Income Tax. HMRC does not provide a form within the ordinary online Self Assessment service for manually entering the quarterly figures.

Do Quarterly Updates Replace the Annual Tax Return?

No. Four quarterly updates must be followed by an annual tax return submitted through compatible software. The annual return includes other income, reliefs, claims and final adjustments that may not have appeared in the quarterly summaries.

How Much Does Accountant Support for MTD Cost?

The cost depends on the number of businesses, transaction volume, quality of existing records, software requirements and whether bookkeeping is included. A straightforward sole trade with organised digital records will generally require less work than a taxpayer with several trades and rental properties.

How Can Apex Accountants Help With the First MTD Update?

Where records are incomplete, software has not been connected or several income sources must be reported, the sensible next step is to resolve the position before the figures build into the next cumulative period.

Apex Accountants can check eligibility, arrange software, review digital records and manage quarterly submissions through its Making Tax Digital accountant service. To discuss the 7 August deadline, book a consultation with the team.