MTD for Income Tax: Final Checklist Before the 7 August Deadline

As of 5 August 2026, in-scope sole traders and landlords have about 48 hours left before the first Making Tax Digital (MTD) for Income Tax quarterly update deadline on 7 August 2026. HMRC’s July press release confirmed that more than 864,000 customers with qualifying income over £50,000 from self-employment and property must send that first update through HMRC-recognised compatible software.

The update is a short digital summary of income and expense category totals — not a tax return and not a payment. The Self Assessment tax return deadline remains 31 January. HMRC will not apply penalty points for late quarterly updates during the 2026 to 2027 tax year, but you still need to send quarterly updates before you can submit the year-end tax return, and late Self Assessment and late payment penalties still apply.

For most customers on standard update periods, the first period runs from 6 April 2026 to 5 July 2026. Customers using calendar update periods cover 1 April to 30 June. In both cases the send deadline is 7 August 2026.

Each quarterly update covers from the start of the tax year to the end of the update period, not only the latest three months. Compatible software totals the same Self Assessment income and expense categories HMRC publishes in the Quarterly update direction. HMRC does not receive individual receipt or invoice lines — only the category totals you approve before sending.

You do not need accounting or tax adjustments before sending a quarterly update. After you send, software or your HMRC online services account can show a tax bill estimate for self-employment and property income, including other information HMRC already holds (for example PAYE or student loan plan type). Estimates are planning tools only — they are not a demand for payment.

Confirm you are in scope: total income from self-employment and property on the 2024 to 2025 tax return over £50,000. If you are not sure, use HMRC’s online tool and Agent Update guidance before assuming you can wait until April 2027 (£30,000) or April 2028 (£20,000).

Sign up for MTD for Income Tax if you have not already, link your chosen compatible software to HMRC (agents use the Agent Services Account), and complete digital records for the first update period. You can send an update any time from the end of the period up to the deadline — or up to 10 days before the period end if you expect no further transactions.

Joint property owners: choose whether quarterly updates include property income and expenses or income only. If you omit expenses, you must report them after year end by resending the fourth quarterly update before the tax return. Solely owned properties still need income and expenses in the quarterly updates.

If something goes wrong technically, still aim to submit before 7 August. First-year quarterly late points are paused, but unfinished digital records will block a clean path to the January tax return and make tax estimates unreliable.

Organised bank, sales, and expense categories shorten the path to quarterly update totals your adviser can review. FinnAccountings helps Ireland and UK sole traders and landlords prepare bookkeeping and tax packs with Chartered Accountant insight before you or your ICAEW/ACCA or Chartered Accountant (Ireland) adviser reviews figures. Start a free trial for review-ready drafts — we prepare packs; we do not submit MTD quarterly updates or Self Assessment returns to HMRC on your behalf.

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Pair this with our one-week MTD countdown and student loans under MTD briefing. Use the free tax calculator for high-level Income Tax and National Insurance planning estimates only.

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