Deadline for first Making Tax Digital for Income Tax quarterly update

More than 864,000 sole traders and landlords within scope of Making Tax Digital for Income Tax have until 7 August 2026 to submit their first quarterly update to HM Revenue and Customs¹. The obligation applies to sole traders and landlords with qualifying income over £50,000, for whom Making Tax Digital for Income Tax became mandatory from April 2026¹.

The first quarterly update period runs from 6 April 2026 to 5 July 2026 for most customers, though some can instead use calendar update periods, the first of which runs from 1 April to 30 June. The deadline for all customers is 7 August 2026¹. The update covers income and expenses for the first three months of the tax year and is submitted through HMRC-recognised compatible software¹. HMRC describes it as "a short summary sent directly to HMRC through recognised software and takes minutes to complete"¹.

The thresholds widen in stages. Making Tax Digital for Income Tax will extend to those earning more than £30,000 from April 2027, and to those earning more than £20,000 from April 2028¹.

Craig Ogilvie, HMRC's Director of Making Tax Digital, said:

Quarterly updates do not replace the tax return, and the tax return deadline remains 31 January. Customers will still need to submit their return and pay any tax owed by that deadline¹. HMRC says some software includes the digital support tool HMRC Assist, which gives tailored feedback to help customers spot potential errors before submission, and that after each update users can see an estimate of their tax bill¹.

Why it matters for households

For sole traders and landlords above the £50,000 threshold, the first quarterly filing falls due on 7 August 2026, four months into the tax year and months before the existing 31 January return date¹. The update is a summary of income and expenses for the quarter, sent through compatible software rather than as a tax return¹. Those who have not yet signed up can still do so, and customers who use an agent can have the agent sign them up instead¹.

Late filing carries no immediate points-based penalty in the first year. No penalty points will be issued for late quarterly updates during the first year of MTD for Income Tax, though penalties still apply for late Self Assessment returns and late payments¹. From the second year onwards, points-based penalties apply where taxpayers miss a quarterly deadline: one point per missed deadline, and once 4 points are accumulated a £200 fixed penalty is charged. Points expire after a period of compliance¹.

Exemptions are available, including for those who are digitally excluded¹. The penalty rules for quarterly deadlines differ from those for the annual return¹.

What happens next

The deadline for the first quarterly update is 7 August 2026¹. The tax return deadline remains 31 January, and quarterly updates do not replace the return¹. The £30,000 threshold takes effect from April 2027 and the £20,000 threshold from April 2028¹. HMRC has not reported a separate deadline for signing up beyond the update deadline itself.