Your First MTD Quarterly Update: What to Submit by 7 August 2026
Your first MTD for Income Tax quarterly update is due 7 August 2026. Learn what to submit, the HMRC expense categories, and how to send it through software.
Key Actions
- Confirm your 2024/25 qualifying income was above £50,000 (so MTD applies from April 2026)
- Sign up for Making Tax Digital for Income Tax through your HMRC online account
- Connect MTD-compatible software to HMRC and categorise transactions for 6 April – 5 July 2026
- Review the quarterly summary your software generates before submitting
- Send the first update before 7 August 2026 and save the HMRC confirmation
If you're a sole trader with qualifying income above £50,000, your first MTD quarterly update is due 7 August 2026 — the first time HMRC will collect a digital summary of your business income and expenses partway through the tax year. The update covers the period 6 April to 5 July 2026 and is sent through MTD-compatible software, not through the HMRC website.
This guide walks through what an MTD quarterly update actually is, what you submit, the step-by-step process, and what happens if you miss the deadline during the first-year soft-landing. It's written for the self-employed and is most useful if you've signed up for MTD for Income Tax but haven't sent an update yet.
What Is a Quarterly Update?
A quarterly update is a digital summary of your business income and expenses for a three-month period, sent to HMRC through your MTD software. It's not a tax return and it doesn't trigger a tax payment — it's an information return that gives HMRC running totals during the year.
You submit category totals (e.g. total turnover, total office costs, total travel), not individual transactions. HMRC sees the summary figures, not your underlying receipts. The system uses these quarterly snapshots to estimate your year-to-date position; the actual tax bill is still calculated once at the end of the year through your final declaration.
For background on the wider rules and who's in scope, see Making Tax Digital for the self-employed.
The 7 August 2026 Deadline: Who Is Affected
The first MTD ITSA quarterly update is due 7 August 2026. It applies to self-employed sole traders (and landlords) whose qualifying income on the 2024/25 Self Assessment return exceeded £50,000. Qualifying income is gross income from self-employment plus gross UK and foreign property income, before expenses.
The first quarterly period covers 6 April – 5 July 2026 under the default standard periods.
| Quarter | Period covered | Deadline |
|---|---|---|
| Q1 (2026/27) | 6 April – 5 July 2026 | 7 August 2026 |
| Q2 (2026/27) | 6 July – 5 October 2026 | 7 November 2026 |
| Q3 (2026/27) | 6 October 2026 – 5 January 2027 | 7 February 2027 |
| Q4 (2026/27) | 6 January – 5 April 2027 | 7 May 2027 |
Calendar Quarterly Periods
If your bookkeeping runs on calendar months, you can elect calendar quarterly periods in your software instead. The periods then run 1 April – 30 June, 1 July – 30 September, and so on. The submission deadlines stay the same — 7 August, 7 November, 7 February, 7 May. You make the election in your software the first time you submit; once set for a tax year, it applies to all four updates.
What You Submit: Income, Expenses, by Category
Each quarterly update contains running totals for the current tax year up to the end of the quarter — not just figures for the three months in isolation. The software handles the cumulation; you categorise transactions as you go.
You submit:
- Total business income for the period (turnover, fees, gig income, platform earnings)
- Total expenses split by HMRC category — the same categories used on the Self Assessment self-employment pages (cost of sales, car/van/travel, rent/rates/power/insurance, repairs/renewals, phone/postage/stationery, professional fees, advertising, and so on)
- Corrections to any earlier quarter in the same tax year (e.g. if you re-categorise a transaction in Q2 that affects Q1)
You don't submit individual invoices, receipts, or transaction lists. You don't submit profit figures, tax estimates, or anything about other income (employment, dividends, interest) — that comes later, at the final declaration.
If you had no income and no expenses in the quarter — a nil period — you still need to submit a nil update. Sending nothing is treated as a missed update.
Step-by-Step: How to Send Your First Update
The actual submission is a few clicks in your software. The work is in the bookkeeping that comes before it.
- Confirm MTD signup is complete. Sign in to your HMRC online account and check Self Assessment shows "Making Tax Digital for Income Tax — Active". If not, follow the sign-up flow first.
- Make sure your software is connected to HMRC. Inside your MTD app, link the HMRC account (a one-time authorisation). If you're new to MTD software, see choosing MTD-compatible software.
- Categorise transactions for 6 April – 5 July 2026. Pull bank transactions into the app, tag each one as business income, business expense (by category), or personal. Leave nothing uncategorised.
- Review the quarterly summary. Your software will show totals per category for the period. Spot-check large entries — was that £1,200 software invoice categorised as professional fees or office costs? Adjust if needed.
- Submit through the software. The "Send quarterly update" (or similar) button submits the cumulative figures to HMRC. There's no web portal alternative — submissions go through software only.
- Save the HMRC confirmation. Once accepted, your software shows a reference number from HMRC. Keep this with your records — it's your proof of submission.
Aim to finish bookkeeping by mid-July 2026 to leave room for review before 7 August. Last-minute submissions are where errors creep in.
The Soft-Landing: What If You Miss 7 August
HMRC has confirmed a 12-month soft-landing on late-update penalty points for taxpayers joining MTD ITSA in April 2026. Late quarterly updates submitted during 2026/27 will not trigger penalty points. This is a one-off concession for the first year only.
That doesn't mean you can skip updates. You still need to submit each one — the deadline simply has no penalty-point consequence in 2026/27. Interest still applies to any unpaid tax once the final declaration is made, and the soft-landing does not extend the 31 January 2028 final declaration deadline. From 2027/28 onwards, the standard MTD penalty point regime kicks in.
Worked Example: Tom's First Q1 Submission
Tom is a freelance software developer. His 2024/25 turnover was £58,000, so MTD applies to him from 6 April 2026.
Tom uses calendar months for bookkeeping, so he's elected calendar quarterly periods. His Q1 covers 1 April – 30 June 2026, with the same 7 August deadline.
Between 1 April and 30 June 2026 his bank shows:
| Item | Total for Q1 |
|---|---|
| Client invoices paid (income) | £15,200 |
| Software subscriptions (office costs) | £340 |
| Home office utilities apportionment (rent/rates/power) | £180 |
| Mobile phone (business portion) | £75 |
| Accounting software (professional fees) | £90 |
| Coworking day passes (premises/repairs) | £120 |
In his software he reviews the summary, hits submit on 18 July 2026. HMRC returns a confirmation reference. Tom's done with Q1.
He doesn't pay tax now. Tom's tax for 2026/27 is still calculated and paid through the final declaration by 31 January 2028 — the quarterly updates just keep HMRC informed during the year.
Frequently Asked Questions
Do I have to send a quarterly update if I had no income or expenses?
Yes. A nil quarter still needs a submission — your software will let you send a nil update. HMRC treats a missing submission as late, even if there was nothing to report. Once the soft-landing ends in April 2027, missed nil updates will count toward penalty points.
What if I'm self-employed AND a landlord?
You send a separate quarterly update for each income source. Self-employment has its own update, UK property has its own, and foreign property has its own. The deadlines are the same (7 August, 7 November, etc.) but the figures are kept separate. Most MTD software handles both within one workflow.
Can I correct a quarterly update after I've submitted it?
Yes. If you spot an error in Q1 after submitting, you correct it in the Q2 update — the running totals for the tax year are restated. There's no separate amendment process. Errors caught after the final declaration are corrected through the normal Self Assessment amendment route within 12 months.
Does the 7 August update tell me how much tax I owe?
No. Quarterly updates don't calculate your tax bill — that happens at the final declaration after the tax year ends. Your software may show an estimate, but it's only an estimate. Tax for 2026/27 is still due in the usual pattern: balancing payment and payments on account around 31 January 2028 and 31 July 2028.
What if I signed up for MTD voluntarily but my income was below £50,000?
You still need to submit quarterly updates by the same deadlines. The soft-landing on penalty points applies the same way for the first 12 months. If you want to leave MTD and return to standard Self Assessment, you can opt out — but until you do, the quarterly cycle applies to you.
Is there a paper alternative if I can't use software?
No. MTD quarterly updates are submitted through software only — there is no paper form or HMRC web portal. If you're unable to use digital tools because of age, disability, location, or another reason, you can apply for a digital exclusion exemption and continue with annual Self Assessment instead.
This guide is for informational purposes only and does not constitute tax, legal, or financial advice. Tax rules change frequently. Always verify current requirements on GOV.UK or consult a qualified accountant for your specific situation.