Your First MTD Quarterly Update Is Due by 7 August 2026: What Sole Traders and Landlords Need to Do
Making Tax Digital for Income Tax is now live, and the first real deadline is almost here. If you’re a sole trader or landlord who joined MTD in April 2026, your very first quarterly update must reach HMRC by 7 August 2026 — and for many people, this will be the first time they’ve ever reported their figures mid-year.
The good news is that a quarterly update is far simpler than a full tax return. With the right software and a little preparation, it doesn’t need to be stressful. Here’s exactly what’s due, what it involves, and how to make sure you get it right the first time.
Who Does This Apply To?
MTD for Income Tax became mandatory from 6 April 2026 for sole traders and landlords whose qualifying income was above £50,000 in the 2024/25 tax year.
Qualifying income means your gross income — your total turnover and rental income before expenses or allowances — from:
- Self-employment (sole trade income), and/or
- UK property (rental income)
If your combined gross income from these sources topped £50,000 on your 2024/25 tax return, you’re in the first wave and these deadlines apply to you — whether or not you received a letter from HMRC. The legal responsibility to check sits with you.
What Is a Quarterly Update?
A quarterly update is simply a digital summary of your business income and expenses for a three-month period. It is not a tax return, and you won’t be asked to pay any tax when you submit it.
Your first update covers the period 6 April 2026 to 5 July 2026, and it’s due by 7 August 2026.
You’ll send HMRC the cumulative totals of your income and expenses for that quarter, using MTD-compatible software. That’s it — no reliefs to calculate, no final figures to confirm, and no payment to make at this stage.
A Few Things That Catch People Out
Most of the worry around quarterly updates comes down to a handful of details. Here are the ones worth knowing now:
- Each income source is reported separately. If you have both self-employment and rental income, you submit two separate update streams — not one combined figure. All your UK properties are grouped together into a single property update.
- You must use HMRC-recognised software. From April 2026, HMRC’s old online filing route is closed to MTD users. Every transaction from 6 April 2026 onwards needs to sit in compatible software as a digital record.
- The figures are summaries, not final. Don’t worry about getting everything perfect. You confirm and correct everything later, at the end of the year.
- Payment dates haven’t changed. Your income tax is still due on 31 January and 31 July as normal. Quarterly updates don’t change when you pay.
The Rest of the Year’s Deadlines
Once your first update is in, three more follow for the 2026/27 tax year:
- 7 November 2026 – quarter ending 5 October 2026
- 7 February 2027 – quarter ending 5 January 2027
- 7 May 2027 – quarter ending 5 April 2027
After your four quarterly updates, you’ll complete a Final Declaration by 31 January 2028. This replaces your old Self Assessment return — it’s where you confirm your figures, add any other income, and claim your allowances and reliefs.
What If You Miss the 7 August Deadline?
If the date slips past, don’t panic. HMRC has confirmed there are no penalty points for late quarterly updates during this first year (2026/27) — it’s treated as a soft-landing period while everyone adjusts.
That said, it’s well worth getting into the habit now. Penalties for late quarterly updates begin from the following year, and four penalty points trigger a £200 fine. Building a simple routine in year one makes year two effortless.
How to Get Ready Before 7 August
If you haven’t submitted yet, here’s a straightforward way to get on top of it:
- Check your software is MTD-ready. Make sure you’re using an HMRC-recognised package and that it’s connected to HMRC.
- Bring your records up to date. Get every transaction from 6 April onwards into your software, properly categorised.
- Separate business and personal spending. Untangling personal card payments later is one of the biggest time-drains, so tidy this up now.
- Review your figures before you file. A quick sense-check avoids obvious errors carrying through the year.
- Ask for help if you’re unsure. A short conversation now is far cheaper than fixing problems later.
How AA&R Can Help
We know that quarterly reporting feels like a big change, especially in the first year. Our job is to take that pressure off you so you can stay focused on running your business.
At AA&R, we can:
- Get you set up on the right MTD-compatible software
- Make sure your digital records are accurate and complete
- Prepare and submit your quarterly updates on your behalf
- Keep you on track with every deadline throughout the year
- Handle your Final Declaration when it’s due
- Answer your questions in plain English, whenever they come up
Whether you want us to manage the whole process or simply check that you’re on the right track, we’re here to make MTD as painless as possible.
Don’t Leave It Until August
Your first quarterly update deadline is 7 August 2026 — and the sooner your records are in order, the easier it will be.
If you’re unsure whether MTD applies to you, which software to use, or how to submit your first update, AA&R can help. We’ll review your situation, get you set up correctly, and make sure you’re ready well before the deadline.
Contact AA&R today to arrange a consultation and take the stress out of Making Tax Digital.