For many sole traders and landlords, August 2026 marks an important milestone. If you are required to use Making Tax Digital for Income Tax, your first quarterly update is due soon. Preparing in advance can help you avoid last minute stress and ensure your records are accurate before submission.
The good news is that a quarterly update is much simpler than many people expect. It is not your final tax return and it does not calculate the tax you need to pay. Instead, it provides HMRC with a summary of your income and expenses for the reporting period using compatible software.
Who needs to submit the first quarterly update?
From 6 April 2026, Making Tax Digital for Income Tax applies to sole traders and landlords whose combined gross income from self employment and UK property exceeded £50,000 on their 2024 to 2025 tax return. Additional income thresholds will be introduced in later years.
If you fall within these rules, you should already be keeping digital records and preparing your first quarterly update.
When is the first MTD deadline?
For businesses using the standard tax year reporting periods, the first quarterly update covers 6 April to 5 July 2026 and must be submitted by 7 August 2026.
If you have elected to use calendar update periods because your accounting period runs from 1 April to 31 March, your first update covers 1 April to 30 June 2026, but the submission deadline remains 7 August 2026.
What information should you prepare?
Before submitting your quarterly tax submission, make sure your digital records are complete and up to date.
You should review:
- Business income received during the reporting period
- Sales invoices
- Allowable business expenses
- Supplier invoices
- Business bank transactions
- Digital copies of receipts where available
- Property income and expenses if applicable
Keeping your records updated throughout the quarter makes the submission process much quicker and reduces the risk of mistakes.
Check your digital records carefully
Before sending your update to HMRC, review your records for accuracy.
Check that:
- All income has been recorded
- Expenses have been categorised correctly
- Duplicate transactions have been removed
- Missing invoices or receipts have been added
- Business and personal transactions are kept separate
Accurate digital records will help produce reliable quarterly updates and provide a clearer picture of your business finances.
Make sure your software is ready
Making Tax Digital updates must be submitted using HMRC compatible software.
Your software should allow you to:
- Keep digital business records
- Record income and expenses
- Generate quarterly updates
- Submit information directly to HMRC
If you have not yet started using compatible software, now is the time to ensure everything is set up correctly before the deadline.
Understand what a quarterly update includes
Many business owners worry that the first submission is the same as completing a tax return.
It is not.
A quarterly update provides summary totals of your income and expense categories. You do not need to calculate taxable profit, claim reliefs or make year end accounting adjustments before submitting the update. Those adjustments are completed later during the end of year process.
Remember that tax payment dates do not change
Submitting a quarterly update does not create a tax payment.
Your Self Assessment payment deadlines remain the same. Quarterly updates simply allow HMRC to build an estimate of your tax position throughout the year while helping you keep your records up to date.
Common mistakes to avoid
Many first time users experience similar problems.
Try to avoid:
- Waiting until the last few days before the deadline
- Using software that is not MTD compatible
- Missing business transactions
- Mixing personal and business expenses
- Forgetting to reconcile bank transactions
- Assuming the quarterly update replaces your annual tax obligations
Preparing early can prevent unnecessary corrections later.
Why early preparation matters
Recent surveys suggest that many UK small businesses are still not fully prepared for the first Making Tax Digital submission deadline. Businesses that have already adopted digital record keeping report better organisation and less last minute pressure when preparing updates.
Starting early gives you time to resolve bookkeeping issues, check your records and become familiar with the submission process before the deadline arrives.
How Tax2u can help
Making Tax Digital is a significant change for many businesses, but you do not have to manage it alone.
At Tax2u, we help sole traders and landlords:
- Register for Making Tax Digital
- Set up compatible software
- Maintain accurate digital records
- Prepare quarterly updates
- Review income and expenses
- Stay compliant with HMRC requirements
Whether you are preparing your first quarterly tax submission or need ongoing bookkeeping support, our experienced team is here to guide you every step of the way.