MTD for Income Tax: Your First Quarterly Deadline Has Passed — Now What?
Updated: Oct 24
The deadline that's already been and gone
If you're a sole trader or landlord earning over £50,000, 7 August 2026 was a date worth knowing. It was the deadline for your first quarterly digital update under Making Tax Digital for Income Tax (MTD for IT) — covering income and expenses from 6 April to 5 July 2026.
Around 864,000 sole traders and landlords were mandated into the new system from 6 April 2026. If you're one of them and you've already filed, well done — that's one of four quarterly updates done for the year. If you haven't, you're not alone, but it's time to act.
Where things actually stand
According to HMRC's own figures, 436,000 people have filed their first quarterly update so far. That leaves a significant gap:
Roughly a third of everyone mandated into MTD for Income Tax still hasn't even signed up for the service, let alone submitted anything.
HMRC has confirmed it's now starting to intervene directly with those who haven't registered.
The system requires quarterly submissions, not just one — so this is the first of many deadlines, not a one-off task to file away and forget.
The good news: no penalty points yet
Here's some breathing room. HMRC has confirmed that no penalty points will be applied for late quarterly submissions during the first 12 months of MTD for Income Tax. So if you've missed 7 August, you won't be financially penalised for this update specifically, right now.
That's a grace period, not an exemption. It's designed to let people get used to the new process — not an invitation to ignore it. Penalties are expected to bite from the second year onwards, and HMRC's compliance activity is already ramping up, so the sensible move is to get your systems sorted well before then.
Don't confuse this with your tax return
This is important: your quarterly MTD update is not your Self Assessment return. For many sole traders and landlords now in MTD, the actual tax return covering this year's figures isn't due until 31 January 2028. The quarterly updates are simply regular digital snapshots of income and expenses feeding into that eventual return.
What you should do this week
Check whether you've been mandated into MTD for Income Tax (based on your qualifying income from your last tax return).
If you haven't signed up, do it now — before HMRC contacts you.
Get MTD-compatible software in place so future quarters are quick, not stressful.
Speak to your accountant about whether your record-keeping habits need tightening up.
FAQ
Do I owe tax based on this quarterly update? No — it's a running total for HMRC's records, not a tax calculation or payment trigger.
What if I've missed the 7 August deadline? File as soon as possible. There's no penalty point in year one, but late filing patterns are being monitored.
When's my next deadline? Your second quarterly update, covering 6 July–5 October 2026, will be due 7 November 2026.
I'm not sure if I'm mandated — what do I do? Check your qualifying income threshold or ask us to confirm it for you.
MTD for Income Tax is a big shift in how sole traders and landlords manage their tax affairs, and getting the habits right now will save real stress later. Jackson Lee Accountants supports SMEs, landlords, and self-employed clients across Bury, Greater Manchester, and Lancashire with MTD-ready bookkeeping and quarterly filing support. If you're unsure where you stand, get in touch with us (https://www.jacksonleeaccountants.co.uk/contact-me) and we'll help you get sorted.
Need a hand with this? We're accountants in Bury, and our VAT and Making Tax Digital service covers it for a fixed fee.
Talk it through with us
If this affects you, book a free, no-obligation 30-minute chat by phone, Teams or at our Bury office, or see your fixed fee online in 2 minutes. Prefer to talk now? Call 0161 327 0047.
Sources: HMRC deadline announcement (https://www.gov.uk/government/news/deadline-approaches-for-first-making-tax-digital-quarterly-update) and Ross Martin: 436,000 file under MTD (https://www.rossmartin.co.uk/sme-tax-news/9073-436-000-file-under-making-tax-digital-for-income-tax)
Comments