📅 Published 22 May 2026✍️ CheckMyMTD⏱ 6 min read📋 Based on HMRC guidance ↗
⚠ Live Deadline
7 August 2026
First MTD quarterly submission due — covering 6 April to 5 July 2026. This applies to every sole trader and landlord with qualifying income over £50,000.
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days remaining
Making Tax Digital for Income Tax came into force on 6 April 2026. If your qualifying income exceeds £50,000, you are legally required to comply right now. The first concrete test of that obligation arrives on 7 August 2026 — the deadline for your first quarterly update.
Most people understand they need to "do something about MTD." Far fewer understand exactly what 7 August means, what happens if it passes without action, and why the soft landing is being misread by thousands of taxpayers in a way that could cost them money.
What is the 7 August 2026 deadline?
The 7 August 2026 deadline is the due date for your first quarterly update under MTD for Income Tax Self Assessment (MTD ITSA).
A quarterly update is a summary of your income and expenses for a specific three-month period, submitted digitally to HMRC through approved software. It is not a tax return. It does not trigger a payment. It is a reporting submission — but it is a legal obligation.
The Q1 period covered by this deadline runs from 6 April 2026 to 5 July 2026. If you were trading or receiving rental income during that period, you are required to report it.
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Important: The End of Period Statement (EOPS) has been removed from the MTD process. There are now just four quarterly updates per year plus one Final Declaration due by 31 January 2028 for the 2026–27 tax year. HMRC: how MTD works ↗
Who must submit by 7 August 2026?
You must submit a quarterly update by 7 August 2026 if:
Your qualifying income for the 2024–25 tax year exceeded £50,000
That qualifying income includes self-employment income, UK property rental income, or a combination
You do not hold a valid MTD exemption
Qualifying income means gross income before expenses — not profit. A sole trader turning over £55,000 with £20,000 in expenses still has £55,000 of qualifying income. A landlord with £52,000 in gross rents still qualifies even if mortgage interest reduces their profit to £18,000.
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CIS contractors: Your qualifying income is your gross CIS sub-contracting income before deductions at source — not the net amount you received. If a main contractor deducted 20% before paying you, you still count the full gross amount.
What actually happens if you miss 7 August 2026?
This is where the soft landing causes the most confusion.
HMRC has confirmed a soft landing for the 2026–27 tax year (Phase 1 taxpayers only). During this period, HMRC will not issue penalty points for late quarterly submissions. But "no penalty points" does not mean "no consequences."
What the soft landing does cover
No penalty points issued for late quarterly updates during 2026–27
No £200 fines triggered during 2026–27 (these require 4 points)
No points carried into 2027–28 from this year's late submissions
What the soft landing does NOT cover
Late payment interest — this applies from day one, regardless of the soft landing
The Final Declaration — missing the 31 January 2028 deadline still earns a penalty point
Phase 2 or Phase 3 taxpayers — the soft landing is explicitly for Phase 1 only
Being outside the system entirely — HMRC can still investigate non-compliance
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The real risk of ignoring the soft landing: Taxpayers who use the soft landing as an excuse to not engage with MTD at all will arrive at April 2027 with no software set up, no HMRC registration, and full penalties in force. The soft landing is a grace period — not permission to ignore the obligation.
The late payment interest calculation
Even if you avoid penalty points via the soft landing, if you owe tax and pay it late, interest accrues. HMRC's current late payment interest structure:
To be clear: quarterly updates do not themselves trigger a tax payment. The payment obligation arises when HMRC assesses your liability through your Final Declaration. But if that liability is eventually unpaid or underpaid, the interest clock runs from the original payment due date — not from when you eventually filed.
What to do right now — step by step
If you are within the Phase 1 threshold and have not yet registered for MTD, here is exactly what you need to do:
1
Confirm your qualifying income
Check your 2024–25 Self Assessment return. Add self-employment income and UK rental income (gross figures). If the total exceeds £50,000 you are in scope. Use our free calculator if you need help.
2
Register for MTD ITSA through HMRC
Sign in to your HMRC online account at gov.uk. Navigate to "Making Tax Digital for Income Tax" and complete the sign-up. If you use an accountant, ask them to do this — agent authorisation through HMRC takes 2–4 weeks so if you haven't done this, start today.
3
Choose and set up approved software
You need HMRC-approved software that can submit quarterly updates. Popular options include QuickBooks, Xero, FreeAgent, Zoho Books and Sage. Most offer free trials. Set up your account, connect it to your HMRC credentials, and import or enter your Q1 income and expenses.
4
Submit your Q1 update before 7 August
Through your software, submit a summary of your income and expenses for 6 April to 5 July 2026. Your software will guide you through this — it typically takes 20–30 minutes once your records are in order.
5
Set reminders for Q2, Q3, Q4
Q2 is due 7 November 2026. Q3 is due 7 February 2027. Q4 is due 7 May 2027. Download our free ICS calendar file to add all four deadlines to your calendar in one click.
What if I'm not sure whether I qualify?
The most common source of confusion is people who receive a mix of income types. Remember: only self-employment and UK rental income count. PAYE salary, pension income, dividends and savings interest are all excluded.
A teacher earning £42,000 in PAYE salary plus £8,000 from a small rental property has qualifying income of £8,000 — well below the £50,000 threshold. They have no MTD obligation in April 2026.
A contractor earning £30,000 in PAYE through an umbrella company plus £25,000 in direct consultancy fees has qualifying self-employment income of £25,000 — below the April 2026 threshold but above the April 2027 threshold. They should start preparing now.
If you are genuinely unsure, use our free checker — it handles all income types and edge cases including joint property, CIS, and gig economy income.
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Already submitted your Q1 update? Well done — you are ahead of a large proportion of newly-mandated taxpayers. Make sure you have Q2 (7 November) and Q3 (7 February) in your calendar. The soft landing covers quarterly submissions this year but not the Final Declaration in January 2028.
No. The soft landing suspends penalty points for late quarterly submissions in 2026–27. It does not suspend the legal obligation to submit. HMRC can still investigate non-compliance, and late payment interest applies regardless. Use the soft landing to get set up properly — not as a reason to delay.
Possibly, but you need to act immediately. Registration through your HMRC online account typically processes within a few days, but connecting your software and entering historical records takes additional time. If you have an accountant, contact them today. If not, register at gov.uk ↗ and start a software trial simultaneously.
Your MTD obligation is assessed based on the previous tax year's income (2024–25). If you were not trading in 2024–25 or your income was below the threshold, you are not in scope for April 2026. However, if your 2025–26 income exceeds the threshold, you will be mandated from April 2027. Start keeping digital records now.
You remain mandated for the current year based on your 2024–25 income. If your 2025–26 income is below the threshold, you can apply to leave MTD — but you must continue submitting until HMRC formally confirms your withdrawal. You cannot simply stop filing because you expect a lower income year.
No. HMRC has confirmed the soft landing applies to Phase 1 (£50,000+) taxpayers only, for the 2026–27 tax year. Phase 2 taxpayers (£30,000–£50,000) joining in April 2027 will face full penalty points from their first submission deadline.
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