MTD for Income Tax: What Happens After Your First Quarterly Update?

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Making Tax Digital (MTD) for Income Tax became mandatory from April 2026 for sole traders and landlords with qualifying income above £50,000. The first quarterly update deadline was 7th August 2026, and many taxpayers have now completed their first submission.

When are quarterly updates due?

The quarterly updates should be provided across the year following April each year, as follows:

• First period of 6 April to 5 July: due 7 August

• Second period of 6 July to 5 October: due 7 November

• Third period of 6 October to 5 January: due 7 February

• Fourth period of 6 January to 5 April: due 7 May

What Happens Next?

After the first update, businesses and landlords must continue submitting quarterly updates throughout the tax year.

At the end of the tax year, they will also need to complete their final tax return and pay any tax due by the relevant deadline.

To avoid errors and last-minute stress, it is important to keep digital records up to date throughout the year rather than waiting until the next quarterly deadline.

What Was the First Quarterly Update?

The first quarterly update covered the first three months of the 2026–27 tax year. Under MTD, businesses and landlords must keep digital records and use compatible software to send a summary of their income and expenses to HMRC every quarter.

It is important to remember that a quarterly update is not a tax return. It is simply a summary of the business or property income and expenses recorded during the period.

What happens if I miss a quarterly update deadline?

For the first year of MTD for Income Tax (2026/27), HMRC isn’t issuing penalty points for late quarterly updates. From 2027/28, missed deadlines earn penalty points under HMRC’s points-based system, with a fine once a threshold is reached.

Key Takeaway

The first quarterly update is only the beginning of the MTD process. Keeping accurate digital records and submitting timely quarterly updates will help ensure compliance and make year-end tax reporting much easier.