First MTD Quarterly Update: What You Need to Do Now

The deadline for your first MTD quarterly update is almost here. If you are a sole trader or landlord who has been required to use Making Tax Digital for Income Tax since 6 April 2026, your first update must reach HMRC by 7 August 2026.

This is the first live quarterly deadline under the new system. It may feel daunting, but the update is not another tax return. It is a summary of the income and expenses held in your digital records. The key is to make sure those records are complete, your software is connected and the correct update period has been selected before you submit.

Here is what you need to check now.

Who must send a first MTD quarterly update?

Making Tax Digital for Income Tax became mandatory from 6 April 2026 for sole traders and landlords whose total qualifying income was over £50,000.

Qualifying income means your gross income from self-employment and property before expenses are deducted. HMRC used the figures from your 2024/25 Self Assessment tax return to decide whether you came within the rules for 2026/27.

The threshold applies to your combined qualifying income. For example, if you received £32,000 from self-employment and £21,000 in gross property income, your combined income was £53,000 and you would normally be within MTD for Income Tax from April 2026.

If you are still unsure whether the rules apply to you, read our guide, Do I Need to Register for Making Tax Digital?

What period does the first update cover?

Most people will use standard update periods that follow the tax year. Their first MTD quarterly update covers:

• 6 April to 5 July 2026
• Submission deadline: 7 August 2026

If your accounts run from 1 April to 31 March, you can choose calendar update periods instead. Your first update would then cover:

• 1 April to 30 June 2026
• Submission deadline: 7 August 2026

You must select calendar update periods in your software before sending your first update. Once the first update has been submitted, you cannot change the update periods you use for the rest of that tax year.

If you have more than one source of self-employment or property income, check the period selected for each one.

What information is included?

Your compatible software will use your digital records to total the income and expenses recorded for the relevant period. The figures are grouped into the categories required by HMRC.

Your records should include all relevant transactions for the period, such as:

• sales and other business income
• rental income, if you are a landlord
• business purchases and running costs
• property expenses
• transactions imported from your bank account
• invoices, receipts and expenses entered manually or through receipt capture software

If you have separate businesses or both self-employment and property income, you will need to keep records and send the required update for each income source.

What is not required at this stage?

A quarterly update is not a set of final accounts or a tax return. HMRC confirms that you do not need to make tax or accounting adjustments before sending it.

You do not pay tax when you submit the update. Your usual Self Assessment payment deadline remains 31 January. The estimate produced after submission can help with planning, but it is not a final tax calculation and may change as more information is added.

Your first MTD quarterly update checklist

Before you press submit, work through these checks.

1. Confirm that you have signed up

Being required to use MTD does not mean that every part of the setup happens automatically. Make sure you or your accountant has completed the MTD for Income Tax sign-up process for the correct income sources.

2. Check your software is compatible and connected

You must submit through software recognised by HMRC. Check that your software supports MTD for Income Tax, not only MTD for VAT, and that it is authorised to connect to HMRC.

HMRC provides an official guide to choosing compatible MTD for Income Tax software.

3. Review the update period

Check whether standard or calendar update periods suit your accounting year. Do this before the first submission, as you cannot change the period for the rest of the tax year after you have sent the update.

4. Bring your digital records up to date

Make sure all income and expenses for the period have been recorded. Reconcile your bank account and review any unmatched, duplicated or uncategorised transactions.

5. Check each income source

If you have more than one trade, a property business, or both, make sure every income source is present and correctly set up. Do not assume that submitting one update covers everything.

6. Review the totals before submitting

Compare the totals with your records and look for anything that appears unusual. A missing month of income, a duplicated bank feed or personal spending recorded as a business expense can distort the figures.

7. Submit by 7 August and keep confirmation

Allow time to deal with software access or authorisation problems. Once the update has been accepted, retain the submission confirmation with your records.

HMRC’s quarterly update guidance explains the official periods and submission rules.

What happens after you submit?

Once your update has been sent, your software should show an estimated tax position based on the information available so far. Treat this as a guide rather than a bill. It may not yet include other income, tax reliefs or year-end adjustments.

Your next quarterly update deadline will be 7 November 2026. Keeping your bookkeeping up to date each week or month will make the next submission far easier than trying to reconstruct three months of activity at the deadline.

If you would like more help with your setup, our Making Tax Digital accountants can support you with digital records, compatible software and quarterly submissions. We also offer Xero setup, support and training.

What if you miss the 7 August deadline?

HMRC has confirmed that people required to use MTD for Income Tax from April 2026 will not receive penalty points for late quarterly updates during the 2026/27 tax year. However, this is a first-year easement, not a reason to ignore the deadline.

A late update can leave your records incomplete, affect the usefulness of your estimated tax position and create more work before later submissions. Penalties can still apply if your Self Assessment tax return or tax payment is late.

If you have not completed the setup, your records are behind or you are unsure what to submit, contact us as soon as possible. We can help you identify what is missing and decide the best way forward.

Call our Bideford office on 01237 472071, our Launceston office on 01566 779111, email info@maynardjohns.co.uk or contact Maynard Johns online.

When is the first MTD quarterly update due?

The first mandatory MTD quarterly update is due by 7 August 2026. For most people, it covers records from 6 April to 5 July 2026. Calendar update periods cover 1 April to 30 June 2026.

Is an MTD quarterly update a tax return?

No. It is a summary of income and expenses taken from your digital records. You do not need to make tax or accounting adjustments before sending it, and it does not replace your annual tax return.

Do I pay tax when I submit a quarterly update?

No. The update may produce an estimated tax figure, but your tax payment remains due through the usual Self Assessment process.

Can my accountant submit the update for me?

Yes. Your accountant can sign you up, manage the required authorisation and submit quarterly updates through compatible software on your behalf.

What if I have both self-employment and rental income?

Your qualifying income is based on the total gross income from self-employment and property. Under MTD, the relevant digital records and quarterly updates must be dealt with for each income source.

Can I change from standard to calendar update periods later?

You must choose the update period in your software before sending your first quarterly update. You cannot change it for the rest of that tax year after the first update has been submitted.

Will I be fined if my first quarterly update is late?

If you were required to join MTD from April 2026, HMRC will not issue penalty points for late quarterly updates during 2026/27. Penalties can still apply to late tax returns and late tax payments.