If you’re one of the sole traders or landlords in the first wave of Making Tax Digital for Income Tax, the first quarterly update deadline has now been and gone. It covered 6 April to 5 July 2026, and was due to HMRC by 7 August 2026. Whether you filed on time, filed late, or missed it altogether, here’s what that means and what comes next.
What’s actually due on 7 August?
This isn’t a full tax return. It’s a summary of your income and expenses for the first quarter of the 2026/27 tax year, submitted digitally through MTD-compatible software. Three more quarterly updates follow through the year, then a final declaration at year end that ties everything together — much like the old Self Assessment process, but built on four smaller submissions instead of one big one. Our earlier guide on what MTD for Income Tax means for sole traders covers the full rollout if you need the wider picture.
Who does this affect right now?
This first deadline applies if your gross self-employment and/or property income was over £50,000 in a relevant earlier tax year. That’s gross income, not profit — so it catches more people than you’d expect. If that’s you, HMRC will already have written to confirm you’re in scope. The threshold drops to £30,000 from April 2027, so even if you’re not affected this time, it’s worth getting your digital records in order now rather than scrambling next year.
The good news: a soft landing on penalties
HMRC has confirmed some breathing room for this first cohort: if you joined MTD in April 2026, you won’t pick up penalty points for late submission of your first four quarterly updates. That’s welcome news if you’re still finding your feet with new software or a new process — but it’s a one-off grace period for early joiners, not a standing rule, so it’s still worth aiming to file on time rather than relying on it.
Missed the deadline? Here’s what to do now
- Get your records digital. Bank statements, invoices and receipts for April to July need to be entered into MTD-compatible software — a spreadsheet alone won’t cut it unless it’s linked through bridging software.
- Reconcile as you go. Match transactions to your bank feed and clear up anything unexplained before you submit, not after.
- File as soon as you can. A late update is better than an unfiled one, and it stops the gap from spreading into your next quarterly deadline.
- Ask for help if you’re stuck. One quarter behind is manageable; two is a much bigger job to unpick.
Good bookkeeping throughout the quarter is what makes this deadline painless rather than a last-minute scramble — that’s exactly what we set clients up for.
Frequently asked questions
What happens if I miss the 7 August deadline?
Nothing drastic for this first cohort — HMRC has confirmed no penalty points apply to your first four quarterly updates if you joined MTD in April 2026. But it’s worth filing as soon as possible: leaving it too long makes the next quarter’s update harder, and the penalty grace period won’t last forever.
Do I still need to file a Self Assessment return?
Yes — you still submit a final declaration each year. MTD adds quarterly updates on top of this, not instead of it. Think of the four quarterly updates as building blocks that feed into the year-end declaration, which replaces the old Self Assessment return.
I’m not sure if I’m actually in scope for this deadline — what should I do?
Check for a letter from HMRC confirming you’re registered for MTD — this deadline applied if your gross self-employment and/or property income was over £50,000 in a relevant earlier tax year. If you’re not sure whether that’s you, get in touch and we’ll check for you.
Cutting it fine? We can still help.
With the deadline just over a week away, we’re helping clients get their April–July records finished, checked and submitted before 7 August. If you’re a sole trader or landlord in Wallyford, Musselburgh, East Lothian, Edinburgh or anywhere across Scotland and you’d rather hand this quarter over than chase it yourself, get in touch today for a free, no-obligation chat — we’ll tell you honestly whether we can get you filed in time.
This article provides general guidance only. For advice on your specific circumstances, see HMRC’s MTD for Income Tax guidance or speak to a qualified bookkeeper.
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