If you're in the first wave of Making Tax Digital for Income Tax — sole traders and landlords with combined gross income over £50,000 based on your 2024/25 tax return — your first quarterly recording period is already underway. It covers 6 April to 5 July 2026, with the update due to HMRC by 7 August 2026.
That deadline is closer than it feels. Here is a practical, week-by-week action plan to get there without a last-minute scramble.
Your first MTD quarterly update is due 7 August 2026 — one month after the end of the 6 April to 5 July recording period. Three more quarterly deadlines follow: 7 November 2026, 7 February 2027, and 7 May 2027.
Step 1: Confirm you're in scope
You're required to follow MTD for Income Tax for the 2026/27 tax year if your total gross income from self-employment and/or property (combined, before expenses) was over £50,000 in the 2024/25 tax year, as reported on your Self Assessment return. HMRC should have written to you, but it is worth checking directly via your HMRC online account if you are unsure — agents can also check this on your behalf.
Get your digital records up to date now
MTD requires digital record-keeping using compatible software — Xero, QuickBooks, FreeAgent, or similar. If you have been keeping records on paper or in a spreadsheet without bridging software, this is the priority task. Every transaction from 6 April 2026 onward needs to be recorded digitally, categorised by income and expense type.
If you haven't started yet, don't try to do three months of records in one sitting the week before the deadline. Set aside a few hours now to get current, then build a weekly or fortnightly habit of entering transactions as they happen.
Reconcile and categorise everything for the period
Before the quarterly update can be submitted, every transaction between 6 April and 5 July needs to be reconciled against your bank statement and assigned to the correct category — the categories broadly mirror the income and expense boxes on the Self Assessment property and self-employment pages.
Pay particular attention to: mixed personal/business transactions, mileage and motor expenses, home office costs, and any cash transactions that haven't been recorded yet.
Submit through MTD-compatible software
The quarterly update itself is a simple submission — total income and total expenses by category for the period, sent directly from your software to HMRC. It is not a tax calculation and does not require you to estimate your tax bill at this stage. The cumulative picture, adjustments, and final tax calculation happen at year end through the End of Period Statement and Final Declaration.
What stays the same
It's worth being clear about what MTD for Income Tax does not change. Your Self Assessment deadline is still 31 January 2027. Your tax payment deadlines (31 January and, where applicable, 31 July for payments on account) are unchanged. The quarterly updates are about keeping HMRC informed of your running totals — they don't trigger a tax payment or a final tax calculation on their own.
What happens if you miss the deadline
HMRC operates a points-based penalty system for late submissions under MTD. Each missed quarterly update adds a point; once you reach the penalty threshold (4 points for quarterly obligations), a fixed penalty applies, and further missed deadlines can result in additional penalties. Points expire after a period of consistent on-time filing. The system is designed to be lenient toward the occasional slip, but persistent late filing becomes costly — so building the habit from this first quarter matters.
Quick reference: your 2026/27 quarterly deadlines
| Period covered | Submission deadline |
|---|---|
| 6 April 2026 – 5 July 2026 | 7 August 2026 |
| 6 July 2026 – 5 October 2026 | 7 November 2026 |
| 6 October 2026 – 5 January 2027 | 7 February 2027 |
| 6 January 2027 – 5 April 2027 | 7 May 2027 |
Need help getting MTD-ready before 7 August?
I can review your current records, set up bridging or full digital bookkeeping, and handle your quarterly submissions going forward. Book a free 30-minute call to get started.