If you're a sole trader or landlord within Making Tax Digital (MTD) for Income Tax, your first quarterly update to HMRC is due by 7 August 2026. With just a few weeks to go, now is the time to make sure everything is in order.

Who does this apply to?

MTD for Income Tax applies from 6 April 2026 to sole traders and landlords whose qualifying gross income was over £50,000 on their 2024/25 tax return. The threshold will reduce to £30,000 from April 2027 and £20,000 from April 2028, bringing more people into the regime over time.

If you're affected, you'll need to submit your first quarterly update covering the period 6 April to 5 July 2026. For many, this will be the first time reporting to HMRC quarterly rather than through a single annual Self Assessment return.

What quarterly updates involve

If MTD applies to you, you'll need to:

• keep digital records of your income and expenses
• use MTD-compatible software
• submit quarterly updates to HMRC
• complete a final declaration after the tax year end (similar to your current Self Assessment return)

An important reminder: quarterly updates aren't tax returns

One of the most common misunderstandings we're hearing is that quarterly updates replace the tax return, or that tax becomes due when you submit one. Neither is true. A quarterly update is simply a summary of your income and expenses for that period, submitted through your software - no payment is due alongside it, and you'll still complete a final declaration after the year end, just as you do now.

If you've engaged us to submit on your behalf

If we're handling your MTD submissions for you, please make sure we have everything we need - your income, expenses, and any supporting records as soon as possible. The sooner this reaches us, the more time we have to review it properly and support you before the 7 August deadline. Leaving this until the last few days makes it much harder for us to catch anything that needs a closer look, and increases the risk of errors or a late submission.

We're hereto help

If you're unsure if MTD applies to you, need help getting your records in order, or simply want to check you're on track for 7 August, please get in touch with the team. We're happy to help you get ready for this first deadline and for quarterly reporting going forward.

_{This is published for the information of clients. It provides only an overview of the regulations in force at the date of publication, and no action should betaken without consulting the detailed legislation or seeking professional advice. Therefore, no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this publication can be accepted by the authors or the firm.}