When is the first MTD for Income Tax quarterly update due in 2026?

The first quarterly update covers 6 April to 5 July 2026 and must be submitted through compatible software to HMRC by 7 August 2026. This applies to Phase 1 taxpayers - those with self-employment or rental income above £50,000 in the 2024 to 2025 tax year.

What happens if I miss the August 2026 MTD quarterly update deadline?

HMRC has confirmed a soft landing for 2026 to 2027, so no penalty points apply for late submissions in year one. However, you must still submit all four quarterly updates before you can file your Final Declaration. Penalty points begin from the 2027 to 2028 tax year.

What software do I need for Making Tax Digital for Income Tax?

You need HMRC-compatible software that supports digital record-keeping and direct submission of quarterly updates. You cannot use HMRC's own website or submit by post. HMRC maintains an approved software list on gov.uk; popular options include QuickBooks, Xero, and FreeAgent.

My income is below £50,000 - do I need to do anything about MTD for Income Tax now?

Not yet mandated, but Phase 2 (incomes above £30,000) starts April 2027 and Phase 3 (incomes above £20,000) starts April 2028. Use 2026 to 2027 to choose compatible software and test your record-keeping before your mandatory start date.

MTD for Income Tax: Your First Quarterly Update Is Due 7 August 2026

If your self-employment or rental income topped £50,000 in the 2024 to 2025 tax year, you joined Phase 1 of Making Tax Digital for Income Tax on 6 April 2026. Your first quarterly update - covering 6 April to 5 July 2026 - is due to HMRC by 7 August 2026. Miss it and you will not be able to file your year-end Final Declaration.

What is a quarterly update?

A quarterly update is a summary of your income and expenses for the quarter, submitted directly to HMRC through compatible software. It is not a tax return and you do not need to calculate your tax liability from it. You are keeping HMRC's systems current so they can build a running estimate of what you owe.

Quarterly updates are cumulative - each submission replaces the previous one. There are four each year:

Quarter	Period	Deadline
Q1	6 April to 5 July 2026	7 August 2026
Q2	6 July to 5 October 2026	7 November 2026
Q3	6 October 2026 to 5 January 2027	7 February 2027
Q4	6 January to 5 April 2027	7 May 2027

After all four, you submit your Final Declaration by 31 January 2028, which crystallises your actual tax liability for the year.

Will I be penalised if I miss August?

HMRC has confirmed a soft landing for the 2026 to 2027 tax year. No penalty points will be applied for late quarterly updates in year one. But you still must submit all four updates - you cannot skip them and go straight to a Final Declaration.

The soft landing is designed to let businesses get their software and processes working. It is not permission to leave it until later. Submitting on time in year one means your setup is tested and working before penalty points switch on for 2027 to 2028.

What software do you need?

You cannot submit quarterly updates through HMRC's own website or by post. Compatible software is mandatory. It must support:

Digital record-keeping for income and expenses in separate categories
Direct API submission to HMRC for quarterly updates
Cumulative reporting across all four quarters

HMRC publishes a list of approved software on gov.uk. Popular options include QuickBooks, Xero, FreeAgent, and several others. If you are still using spreadsheets, you need to switch now - the August deadline is six weeks away.

The real burden is continuous record-keeping, not the submission

Submitting the quarterly update itself takes minutes if your records are current. The burden is maintaining accurate digital records throughout the quarter. Most businesses that find MTD stressful in year one are not behind on submissions - they are behind on bookkeeping.

An AI agent integrated with your bank feed and accounting software handles the ongoing side:

Categorises transactions as they arrive, removing the month-end pile-up
Flags uncategorised items or anomalies for your weekly review
Prepares a quarter-end summary of income and expenses ready for submission
Sends a reminder two weeks before each deadline

With this setup, a quarterly submission becomes a 20-minute review rather than a day of retrospective bookkeeping.

When do other taxpayers join?

Phase 2 brings in those with income between £30,000 and £50,000 from April 2027. Phase 3 covers incomes above £20,000 from April 2028 (FSB, 2026). If you are below the current threshold, use this year to get compatible software in place and test your record-keeping process before your mandatory start date arrives.