Jul 22

2026

Making Tax Digital’s first quarterly deadline is here: how to ensure your August submission is compliant

The first quarterly update under Making Tax Digital for Income Tax is due by 7 August 2026. For standard update periods, it covers 6 April to 5 July 2026. It is a cumulative summary of income and expenses created from digital records and sent through compatible software. HMRC does not receive individual invoices or receipts, and no tax payment is due. Our guide to how Making Tax Digital works explains the wider system.

What the August update contains

Your software creates totals for the relevant income and expense categories. Review them before sending, but you do not need final accounting adjustments or tax claims at this stage. After submission, your software may display an estimated tax bill, but it is not a demand for payment.

A sole trader who also receives UK property income normally sends one update for the trade and another for the UK property business. Properties forming part of the same UK property business are reported together.

Why cumulative reporting matters

Each update covers the period from the start of the tax year. The November update therefore covers 6 April to 5 October, not only the latest 3 months. If an invoice was categorised incorrectly, correct the digital record. The revised year-to-date totals will appear in the next update, so you do not normally resend the earlier one.

Reliable bookkeeping remains essential. Cloud accounting and regular management accounts can help identify missing income, duplicates and incorrect categories before submission.

A practical example

A freelance designer in Armagh whose 2024/25 qualifying income exceeded £50,000 through self-employment and UK property would need one update for each source. Trade records might include software and professional fees, while property records might include rent, repairs and agent charges. Our guide to how a tax accountant supports small businesses explains how an adviser can review the records without turning the update into a year-end exercise.

A checklist before you submit

Confirm that you are signed up and your software is connected to HMRC. Review transactions from the start of the tax year, reconcile them to the bank, investigate uncategorised items and check unusually large entries. Send the update before the deadline and retain the confirmation.

If your accounting period runs from 1 April to 31 March, you may choose calendar update periods. Select them in your software for each income source before sending its first update. The period basis cannot then be changed for that tax year.

If you are not ready

HMRC will not apply penalty points for late quarterly updates in 2026/27. You must still keep digital records and send all 4 updates before submitting the 2026/27 tax return through compatible software. Penalties can apply to a late tax return or late payment.

Payment dates have not changed. The second 2025/26 payment on account was due by 31 July 2026. Monitor your key monthly figures and consider improving cash flow if the timetable is exposing pressure. If records require a forensic reconstruction, address them early. More serious difficulties may justify recovery and restructuring advice. HMRC’s step by step guidance explains the official process.

Frequently asked questions

Do I pay tax with the quarterly update?
No. Payments remain due under the normal Self Assessment timetable.

What if I had no income or expenses?
You must still send the update.

Do I still submit a tax return?
Yes. The 2026/27 return is due through compatible software by 31 January 2028.

Get your first submission right

SCC’s SME business solutions team can review or manage the update. Businesses with cross-border interests can also use its cross-border accounting and tax support and read what MTD means for UK and Irish businesses. Speak to SCC Chartered Accountants before the deadline.