Making Tax Digital (MTD) for Income Tax is now mandatory for all sole traders, self-employed individuals and landlords with a qualifying gross income above £50,000 from self-employment or property.
This came into effect from 6 April and means that those affected have to provide quarterly updates of their income and expenses to HMRC.
If you are wondering when that will impact you, then mark 7 August 2026 in your calendar as this is the first quarterly submission deadline.
What will I need to provide by 7 August?
It is one thing to be MTD ready and another to actually make submissions.
This first submission will see you providing a summary of your income and allowable business expenses for the period 6 April to 5 July 2026.
This should include:
Your MTD obligations were determined by whether you earned £50,000 or more in the 2024/25 tax year, so you still need to make a filing even if your income has declined or dropped to nil since then.
MTD for Income Tax differs from MTD for VAT as the quarterly update will overwrite the previous submission.
Our team can help you to figure out what information to provide so you can stay compliant.
How do I submit my quarterly MTD update?
The time has come to fully utilise your HMRC-recognised MTD-compatible software or to get an agent to assist you.
Eligible software will likely be bookkeeping software such as Xero, QuickBooks, Sage Accounting or FreeAgent, but it remains possible to use a spreadsheet linked to HMRC-compliant bridging software.
If you are still unsure about which software to use or how to get the most out of it, our team can help with this too.
Getting ready now will avoid a last-minute panic as 7 August approaches and expert support can be the key in facing your new obligations with confidence.
For help preparing for your first MTD quarterly update, get in touch.
