MTD for Income Tax: your first quarterly update is due 7 August 2026

If you're a sole trader or landlord, you may have seen reminders from HMRC that your first Making Tax Digital (MTD) for Income Tax quarterly update is due soon. Here's a quick rundown of what you need to know and what you need to do.

Does this apply to me?

MTD for Income Tax became mandatory from 6 April 2026 for sole traders and landlords with qualifying income over £50,000. If that's you, your first quarterly update deadline is 7 August 2026.

If your income is below £50,000, this doesn't apply to you yet, the threshold drops to £30,000 from April 2027 and £20,000 from April 2028, so it's worth knowing it's coming.

What period does it cover?

For most people, the first update covers 6 April 2026 to 5 July 2026. 

What actually is a "quarterly update"?

It's a short summary of your business income and expenses, sent to HMRC through a compatible software (like QuickBooks). 

Important: this is not a complete tax return. It doesn't replace your Self Assessment, and it doesn't require any tax calculations or adjustments — just your income and expense totals for the quarter. Your Self Assessment return and payment deadline (31 January) stays exactly the same.

What happens if I miss it?

HMRC has confirmed there are no penalty points for late quarterly updates during this first mandatory year but it's still worth getting into the habit now, since penalties are expected to apply from future years.

Not sure if you're affected, or when your next VAT deadline is?

You can find official GOV.UK MTD guidance.

Got questions about your quarterly update? Drop them below and we'll help you get sorted before the deadline 👇