Deadline Fast Approaching for First Making Tax Digital Quarterly Submission

There is just two weeks left before the deadline to submit the first quarterly update covering income and expenses for Making Tax Digital (MTD).

Sole traders earning more than £50,000 from their self-employment, and landlords earning the same through property, must send their first Making Tax Digital update by 7 August 2026.

The update covers income and expenses for the first three months of the tax year from 6 April 2026 to 5 July 2026.

The quarterly update is sent directly to HMRC through digital software and takes minutes to complete.

It’s Not Too Late (Yet)

HMRC says people who have not yet signed up can still do so now by visiting GOV.UK, where they can also find software and access free guidance and webinars.

Some software includes digital support tool HMRC Assist, which gives tailored feedback to help customers spot potential errors before submission. Customers remain responsible for ensuring their return is accurate.

After each update, users can see an estimate of their tax bill, helping them to plan ahead.

Making Tax Digital is now a legal requirement and will extend to those earning more than £30,000 from April 2027, and to those earning more than £20,000 from April 2028.

HMRC says no penalty points will be issued for late quarterly updates during the first year of MTD for Income Tax. Penalties do still apply however for late Self-Assessment returns and late payments.

The tax return deadline remains 31 January. Quarterly updates do not replace the tax return – customers will still need to submit their return and pay any taxed owed by the 31 January 2027.

Are We Ready?

Research from business management platform Tide reveals that more than 200,000 qualifying business owners aren’t ready for MTD.

Tide first highlighted this looming issue in February 2026, when they revealed sole traders faced a £2.18 billion compliance bill, equivalent to £753 per business.

With the deadline just days away, 22% of owners still don’t know it’s coming, and Tide estimates 25% haven’t yet signed up with HMRC for MTD – that leaves a 216,000 unprepared to submit their first update.

Still Need to Do Annual Return

The research also shows that many business owners are confused about now needing to file tax information to HMRC five times a year: four quarterly updates and one final annual submission. Tide’s survey finds that 85% of those joining MTD this year don’t know this.

Lost Time and Revenue

The launch of MTD lands in one of the busiest trading periods and at a time when many business owners had hoped for time off. Tide says sole traders and landlords fear the time needed for the new tax admin which will cost them in lost revenue too.

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