The MTD quarterly update deadline of 7 August 2026 is quickly approaching and for a lot of sole traders and landlords across the UK. It is the moment Making Tax Digital for Income Tax (MTD for ITSA) does not just remain a policy on paper but becomes a live obligation. If your eligible income from self-employment was more than £50,000 on your 2024 to 2025 tax return, you are needed to keep digital records and send quarterly updates to HMRC through compatible software beginning with this first submission.
Here’s the good news: this is not a tax return and you don’t need to wait for a bill to submit. It is simply a digital record of your income and expenditure for the quarter. This only holds true if you are registered and clear on what counts as the eligible income.
So before you start to panic, let’s get to know what the MTD quarterly update deadlines need and who applies to it along with the steps you require to complete before the deadline runs out on 7 August.
What Is the MTD Quarterly Update Deadline?
The MTD quarterly update deadline is the date by which sole traders and landlords within MTD for Income Tax must send a summary of their income and expenses to HMRC through MTD-compatible software. It is not a tax return, and it does not calculate or collect any tax on the day. Instead, it reports totals for each income and expense category, based on the digital records kept throughout the quarter.
For most people using standard update periods, the first quarterly update covers the period from 6 April 2026 to 5 July 2026, and it must be submitted by 7 August 2026. If your accounting period instead follows the calendar quarter, running from 1 April to 30 June, the update is still due by the same 7 August 2026 deadline.
Who Needs to File by 7 August?
You need to use MTD for Income Tax, and therefore meet the 7 August deadline, if all of the following apply:
- You are registered for Self Assessment as a sole trader, a landlord, or both.
- You receive income from self-employment, property, or a combination of the two.
- Your total qualifying income was more than £50,000 in the 2024 to 2025 tax year.
Qualifying income is your gross turnover from self-employment and UK or foreign property combined, before expenses, allowances, or deductions are taken off. Income from employment, pensions, dividends, interest, and capital gains does not count towards this threshold.
HMRC determines your mandation date using the qualifying income figure reported on your most recent Self Assessment return. Sole traders and landlords with qualifying income above £30,000 will be brought into MTD for Income Tax from 6 April 2027, with a further threshold reduction planned from April 2028. Even if you have not received a letter from HMRC confirming you must join, it remains your responsibility to check whether MTD applies to you.
Exactly What You Must File by the Deadline
For each self-employment or property business you operate, you must submit a quarterly update, even if there was no income or expenses during the period. HMRC does not require individual invoices or receipts as part of this submission. Instead, your MTD software pulls totals from your digital records and organises them into standard income and expense categories, which are then sent to HMRC electronically.
Because a quarterly update is not a tax return, no accounting or tax adjustments need to be made before you submit it. Once sent, your software or your HMRC online account may show an estimated tax calculation, but this figure may be incomplete if you have income from other sources that has not yet been recorded.
Steps to Take Before 7 August
- Confirm you are signed up for MTD for Income Tax with HMRC, since this cannot be completed on the day of the deadline.
- Check that your chosen software is linked and authorised to send updates directly to HMRC.
- Review your digital records for the first quarter to ensure income and expenses have been recorded accurately.
- Confirm whether your software is using standard update periods (6 April to 5 April) or calendar update periods (1 April to 31 March), as this cannot be changed part-way through the tax year.
- Submit each quarterly update separately for every self-employment or property business you run.
What Happens If You Miss the 7 August Deadline?
HMRC has confirmed that no penalty points will be issued for late quarterly updates during the first year of mandatory MTD for Income Tax, as part of a planned soft landing period. However, this does not remove the obligation to file. If the first quarterly update is missed, it can still be submitted alongside the second quarterly update, due by 7 November, and this combined submission will satisfy the obligations for both quarters.
From 2027 onwards, once the soft landing ends, missed deadlines will begin to accumulate penalty points. After four points have been recorded, a fixed penalty of £200 is issued, with a further £200 charge applying for each additional missed deadline after that. All four quarterly updates must be filed before you are able to submit your MTD Final Declaration at the end of the tax year.
The Full MTD for Income Tax Reporting Calendar
Once you are within MTD for Income Tax, quarterly updates follow a fixed annual pattern:
- 7 August – first quarterly update (covering 6 April to 5 July, or 1 April to 30 June for calendar periods)
- 7 November – second quarterly update
- 7 February – third quarterly update
- 7 May – fourth quarterly update
After the four quarterly updates for the tax year have been submitted, a Final Declaration is due by 31 January following the end of that tax year. This replaces the final step of the old Self Assessment return process. Importantly, MTD for Income Tax changes how and how often you report income, not when you pay tax. The existing 31 January and 31 July payment dates under Self Assessment remain unchanged.
Does This Affect My 2025/26 Self Assessment Return?
No. The Self Assessment deadline of 31 January 2027 relates to your 2025/26 tax return, the last one filed entirely under the previous system. It is separate from your MTD obligations, which begin with the quarterly update due on 7 August 2026 for the 2026/27 tax year. Your first Final Declaration under MTD for Income Tax, covering the 2026/27 tax year, will be due by 31 January 2028.
Conclusion
The MTD quarterly update deadline on 7 August 2026 is the first significant milestone for sole traders and landlords brought into Making Tax Digital for Income Tax this year. While no penalty points apply during this initial soft landing period, filing on time still matters, since all four quarterly updates must be completed before your Final Declaration can be submitted. Checking your MTD registration, confirming your software is linked to HMRC, and reviewing your digital records now will help you meet the deadline with confidence and stay on track for the rest of the reporting year.
Not able to stay aligned with the compliance? Get yourself an Accountant like Lexarox Accounts that specializes in MTD for ITSA.
Frequently Asked Questions
What is the MTD quarterly update deadline for the first submission?
The MTD quarterly update deadline for the first submission is 7 August 2026, covering income and expenses from 6 April to 5 July 2026, or 1 April to 30 June 2026 if you use calendar update periods.
Who has to file a quarterly update by 7 August 2026?
Sole traders and landlords registered for Self Assessment whose total qualifying income from self-employment or property was more than £50,000 in the 2024 to 2025 tax year must file by this date.
Is the quarterly update the same as a tax return?
No. A quarterly update reports totals of income and expenses for the period. It is not a tax return, and no tax or accounting adjustments are required before you submit it.
What happens if I miss the 7 August deadline?
You can still submit the missed update alongside your second quarterly update, due by 7 November, which will cover both periods. No penalty points apply during the first year of mandatory MTD, though this changes from 2027.
Do I need to submit a quarterly update if I had no income during the period?
Yes. You must submit a quarterly update for each self-employment or property business you operate, even if there was no income or expenses during that quarter.
Can I change my update periods after the first submission?
No. Once you choose standard or calendar update periods in your software for the tax year, this cannot be changed until the following tax year.
Does the MTD deadline change when I pay my tax?
No. MTD for Income Tax changes how and how often you report income to HMRC, not when tax is paid. The existing 31 January and 31 July Self Assessment payment dates remain the same.
