First MTD Quarterly Update Deadline: What Sole Traders and Landlords Need to Do Before 7 August 2026

Quick answer: who has a 7 August 2026 MTD deadline?

The 7 August 2026 deadline applies to the first group required to use Making Tax Digital for Income Tax.

You generally fall into this group if you are an individual registered for Self Assessment, receive self-employment or property income, and your total qualifying income shown on your 2024/25 tax return was more than £50,000. Qualifying income is broadly your gross self-employment and property income before expenses, not your profit. The sources are combined, so £35,000 of self-employment income plus £20,000 of property income may put you over the threshold.

The threshold reduces to more than £30,000 from April 2027 and more than £20,000 from April 2028. Not receiving an HMRC letter does not remove your responsibility to check. Use HMRC's official MTD checker to find out when you need to start and whether an exemption may apply.

What is due by 7 August 2026?

By 7 August 2026, affected taxpayers need to submit their first quarterly update through MTD-compatible software.

For standard update periods, the first update covers records from 6 April to 5 July. If your accounting period runs from 1 April to 31 March and you select calendar update periods in your software before the first submission, it covers 1 April to 30 June. The filing deadline is 7 August in either case.

Your software totals the digital income and expense records for each self-employment and property business. HMRC describes the update as a summary, not a tax return, so year-end accounting and tax adjustments are not normally required at this point. Updates are cumulative: each one covers the start of the tax year through to the end of its latest update period. Read HMRC's quarterly update guidance for the reporting details.

What records need to be digital?

You need to create and preserve digital records of your self-employment and property income and expenses. These can include sales, fees, rent, stock, travel, office costs, repairs, insurance, professional fees, bank charges and finance costs.

A bank feed helps, but imported transactions still need to be checked and categorised. A folder of scanned receipts alone is not a complete digital accounting record. Record transactions as close to the date they happen as practical and keep the supporting invoices and receipts required under the normal record-keeping rules.

If you use spreadsheets, do not assume they qualify by themselves. You may need bridging or other compatible software to preserve the required digital links and send updates. See HMRC's digital record guidance.

What to sort before the first quarter closes

Before submitting, reconcile the records rather than trusting an imported total. Check that:

• you know whether MTD applies to you for 2026/27
• your software is MTD-compatible for Income Tax
• your business and property income sources are set up correctly
• bank feeds or import processes are working
• income and expenses are being categorised consistently
• cash income, card processors, online marketplaces, mileage and receipts have not been missed
• transfers, loan movements and personal spending have not been recorded as business income or expenses
• uncategorised and duplicate transactions have been resolved
• each separate self-employment and property business is set up correctly
• you know who will submit the update: you, your accountant, or your bookkeeper
• your software authorisation with HMRC is active before deadline day

Common first-quarter mistakes

The first MTD quarterly update is where messy setup tends to show. Watch for:

• using bookkeeping software that handles invoices but is not ready for MTD Income Tax submissions
• mixing personal and business spending without clear categories
• forgetting property income when checking the threshold
• assuming the quarterly update replaces the annual tax return
• waiting until the deadline week to connect software to HMRC
• not giving your accountant authority or access early enough

Do you pay tax every quarter under MTD?

MTD quarterly updates do not automatically mean you pay Income Tax every quarter.

The update tells HMRC about income and expenses during the year. Your final tax position is still worked out after the tax year ends, when the annual return or final declaration includes the full picture.

That said, cleaner quarterly records should make tax planning easier because you can see your profit and likely tax bill earlier.

MTD quarterly deadlines for 2026/27

Add all four dates to your calendar now:

• First quarterly update: 7 August 2026
• Second quarterly update: 7 November 2026
• Third quarterly update: 7 February 2027
• Fourth quarterly update: 7 May 2027
• MTD tax return and payment deadline for 2026/27: 31 January 2028

Simple action plan before 7 August 2026

If you think you are in scope, use this action plan:

• Use HMRC's checker and confirm your qualifying income from all self-employment and property sources.
• Choose HMRC-recognised software that supports every income source you have.
• Sign up yourself or confirm that your accountant has signed you up.
• Connect your HMRC account and test the authorisation process.
• Clean up income and expenses for April, May, and June.
• Review unusual transactions before submitting.
• Ask your accountant to review the setup before the first deadline.

How Aurestone can help

Aurestone Advisory helps sole traders, landlords, and small business owners prepare for MTD with cleaner records, software setup, bookkeeping routines, and deadline planning.

If you are not sure whether the first 7 August 2026 deadline applies to you, we can review your income sources and help you set up a calmer reporting process before the first quarterly update is due.