The first quarterly update deadline under Making Tax Digital for Income Tax was 7 August 2026. If you missed it, taking action now can help you bring your records up to date and prepare for the next deadline.

Making Tax Digital is now live

Making Tax Digital for Income Tax became mandatory from 6 April 2026 for many sole traders and landlords whose qualifying self-employment and property income exceeded £50,000 in the 2024/25 tax year.

Those affected must maintain digital records and submit quarterly summaries of their income and expenses to HM Revenue & Customs using compatible software.

What happens if you missed the 7 August deadline?

The important thing is not to ignore the outstanding update. HMRC has confirmed that it will not issue penalty points for late quarterly updates during the 2026/27 tax year.

This first-year concession does not remove the obligation to keep digital records or submit the required information. Your quarterly information will still need to be provided before you can submit your tax return. Penalties may also apply separately to late Self Assessment returns and late tax payments.

Five steps to take now

1. Confirm whether MTD applies to you. Review the gross income reported from self-employment and property on your 2024/25 tax return. The relevant figure is income before business expenses.
2. Check that you are correctly registered. Do not assume that using accounting software means you have automatically joined Making Tax Digital.
3. Bring your digital records up to date. Record relevant business and property income and expenses from the start of the tax year and retain supporting documents.
4. Submit the outstanding information. Use HMRC-compatible software and include every relevant income source.
5. Prepare for the next deadline. The next quarterly update is due by 7 November 2026. A regular bookkeeping routine can make future submissions easier.

Quarterly updates are not quarterly tax returns

A quarterly update is a summary produced from your digital records. It contains totals for relevant income and expense categories and does not normally require all the tax adjustments that form part of an annual tax return.

Making Tax Digital also does not generally mean paying Income Tax four times a year. The usual Self Assessment payment timetable continues to apply unless HMRC introduces or agrees another arrangement for your circumstances.

Who joins next?

• Qualifying income over £50,000 entered MTD from 6 April 2026.
• Qualifying income over £30,000 is expected to enter from 6 April 2027.
• Qualifying income over £20,000 is expected to enter from 6 April 2028.

How Edge Accountants can help

We can assess whether Making Tax Digital applies to you, review your digital records, help configure compatible software and assist with quarterly submissions.

If you missed the first deadline or are uncertain about your position, contact Edge Accountants for a Making Tax Digital readiness review.

Important: This article provides general information and should not be treated as advice tailored to your circumstances. Tax rules and HMRC guidance may change. Please seek professional advice before taking action.