Two weeks. That’s how long you’ve got.
If Making Tax Digital for Income Tax (MTD ITSA) applies to you, the date you need in your diary right now is 7 August 2026.
That’s the deadline for your first quarterly digital update — covering the period from 6 April to 5 July 2026. If your gross income from self-employment and/or property exceeded £50,000 in 2024/25, you are in scope and this deadline is live.
The good news: you have time. The less good news: not much of it.
What is a quarterly update?
Under MTD for Income Tax, instead of only filing your annual Self Assessment return in January, you now submit four digital updates throughout the year — one for each quarter. Each update is a summary of your income and expenses for that three-month period, submitted through HMRC-approved software.
Your Self Assessment return is unchanged. It continues on 31 January each year, exactly as before. MTD adds the quarterly layer on top — it does not remove your existing obligations.
What you need to do before 7 August
If you are already using MTD-compatible software — Sage, Xero, QuickBooks, FreeAgent or similar — and have been recording your income and expenses digitally since 6 April, you’re in a good position. Review your Q1 transactions, make sure everything is categorised correctly, and submit your update through your software before the deadline.
If you are not yet set up — or you’re not sure whether you’re in scope — now is the moment to act. Here’s what needs to happen in the next 14 days:
→ Confirm your qualifying income. Add your gross income from self-employment and property for 2024/25. Over £50,000 combined? You’re in Wave 1.
→ Choose and set up your MTD software. HMRC maintains a list of approved products. If you’re unsure which is right for your business, we can advise.
→ Connect your bank feed and categorise transactions from 6 April. Your Q1 update needs to reflect income and expenses from 6 April to 5 July.
→ Submit by 7 August.
What about the soft-landing?
HMRC has confirmed that no penalty points will be issued for late quarterly submissions in 2026/27 — the first year of MTD. From 2027/28, the full points-based penalty system applies: four late submissions triggers an automatic £200 fine.
The soft-landing means the consequences of missing 7 August are reduced this year. It does not mean the deadline doesn’t exist. Getting into the habit of quarterly submissions now — while there is no penalty pressure — is the right approach.
We’re here to help
If you have questions about your first MTD submission, whether you’re in scope, or how to get your software set up, speak to us. We have been helping sole traders, landlords and small businesses across Yorkshire prepare for MTD since well before April — and we are with you through every quarterly deadline.
