Making Tax Digital 2026: First Quarterly Deadline Explained

Making Tax Digital: Are You Ready for Your First Quarterly Deadline?

If you’re already registered for Making Tax Digital (MTD) for Income Tax, now is the time to make sure you’re fully prepared for your first quarterly update deadline.

From April 2026, HMRC is changing how sole traders and landlords report their income. Instead of submitting a single annual Self Assessment, MTD requires you to keep digital records and send regular updates throughout the year using compatible software. 

What’s Changing Under MTD?

Under the new rules, your accounting software will use your digital records to create quarterly updates. These updates:

• Summarise your income and expenses by category
• Do not require adjustments (such as accruals or tax corrections) before submission
• Provide HMRC with an in-year snapshot of your financial position

Importantly, HMRC does not receive individual invoices or receipts, only the totals for each category.

Key Deadline: 7 August 2026

For most businesses, the first quarterly update will cover either:

• 6 April 2026 to 5 July 2026 (standard tax year quarters), or
• 1 April 2026 to 30 June 2026 (calendar quarters)

In both cases, the submission deadline is: 7 August 2026

You’ll need to submit separate updates for each self-employment or property business, even if there has been no activity during the period.

What Happens After You Submit?

Once your quarterly update is filed:

• Your software or HMRC account may generate an estimated tax position
• This estimate may be incomplete, particularly if not all income streams are included
• Your final tax liability will still be confirmed at the year-end submission stage

Are There Penalties?

For the 2026/27 tax year, HMRC has confirmed there will be no penalty points for late quarterly submissions as the system is introduced.

However, that doesn’t mean you should delay. Establishing the right systems and processes now will:

• Help avoid future penalties
• Improve accuracy and visibility over your finances
• Reduce stress as MTD becomes fully embedded

How to Prepare Now

To stay compliant and confident, you should:

• Ensure you are using MTD-compatible software
• Keep your records up to date digitally
• Understand your reporting periods and deadlines
• Put a process in place for regular bookkeeping

How Charlton Baker Can Help

MTD represents more than just compliance - it’s an opportunity to gain better insight into your business performance.

At Charlton Baker, we support clients with:

• MTD software setup and migration
• Ongoing bookkeeping and quarterly submissions
• Clear financial reporting and tax planning

Our team ensures everything is handled accurately and on time - so you can focus on running your business with confidence. Call us now on 01380 723692 / email.