HMRC: Two Weeks Left for First MTD Income Tax Quarterly Update (Due 7 August 2026)

On 23 July 2026, HM Revenue & Customs published a press release reminding Making Tax Digital (MTD) for Income Tax customers that the first quarterly update is due by 7 August 2026. HMRC says more than 864,000 sole traders and landlords in scope have roughly two weeks left to submit a short summary of income and expenses for the first three months of the tax year through recognised software.

Craig Ogilvie, HMRC’s Director of Making Tax Digital, called the moment a landmark for digital record-keeping and urged anyone not yet signed up to start now on GOV.UK. The quarterly update is not a tax return — but it is now a legal obligation for those brought into MTD from April 2026.

MTD for Income Tax became mandatory from 6 April 2026 for sole traders and landlords with qualifying income over £50,000. HMRC confirms the threshold drops to more than £30,000 from April 2027 and more than £20,000 from April 2028.

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

Updates must be sent through HMRC-recognised compatible software. Some products include HMRC Assist, which can flag potential errors before send — but customers remain responsible for accuracy. After each update, software may show an estimated tax bill to support cash planning.

HMRC restates that no penalty points will be issued for late quarterly updates during the first year of MTD for Income Tax (2026–27). Points-based penalties for missed quarterly deadlines start from the second year: one point per miss, and a £200 fixed penalty once four points accumulate (points can expire after a period of compliance).

Penalties still apply for late Self Assessment returns and late tax payments. Quarterly updates do not replace the tax return — customers must still submit their return and pay any tax due by 31 January 2027.

Digitally excluded customers and other exemption categories remain available; check GOV.UK if you believe an exemption applies before assuming you are out of scope.

Confirm you are signed up for MTD for Income Tax and that your software is linked to HMRC. Registration and connection issues are the most common last-minute blockers.

Reconcile April–June (or April–early July) bank feeds, separate business from personal spending, and send a test or draft update early so you are not debugging on 6 August. HMRC’s case study of a potter who submitted weeks early underlines that the send itself can take minutes when digital records are already complete.

FinnAccountings helps UK sole traders and landlords organise bank feeds, expenses, and tax prep drafts with Chartered Accountant insight before you or your ICAEW/ACCA adviser reviews figures for MTD software submission — start a free trial to tighten your Q1 pack before 7 August. Pair that with our earlier MTD ITSA first quarterly deadline guide and the free tax calculator for planning estimates only.

See the MTD ITSA 2026 compliance checklist and the £20,000 threshold April 2028 briefing for the longer roadmap. For Ireland–UK freelancers juggling both systems, our cross-border remote work tax guide remains a useful companion.