As we navigate the first year of mandatory Making Tax Digital for Income Tax Self Assessment (MTD ITSA), we want to remind all members that the deadline for submitting your first quarterly update is approaching on 7 August 2026.
If your qualifying income from property and self-employment exceeds £50,000, this requirement now applies to you following the rollout in April 2026.
What You Need to Know
The Filing Window: The first quarterly update covers income and expenses for the first three months of the tax year.
- Standard tax quarter: 6 April to 5 July 2026.
- Calendar-based period: 1 April to 30 June 2026.
Deadline for both: 7 August 2026.
What is a Quarterly Update? A quarterly update is not a full tax return. It is a digital summary of your gross income and expenses for the quarter, submitted via MTD-compatible software.
Annual Return Still Required: You are still required to submit your annual Self Assessment return and make final tax payments by 31 January 2027.
Tax Estimates: Once your quarterly summary is submitted, your software can generate an running estimate of your tax liability to help you plan ahead.
Key Action Steps for Landlords
- Verify Software Compatibility: Ensure the software package you use is fully compatible with MTD ITSA. Many commercial tools include HMRC Assist features to flag potential data errors before you file.
- Review Digital Records: Double-check that your rental income and allowable expenditure for the first quarter are logged accurately. While the software handles submission, legal responsibility for data accuracy remains with you.
- Appoint an Agent if Needed: If you use an accountant or tax professional, ensure they are authorized to submit quarterly updates on your behalf.
- Register if You Haven’t Yet: If you meet the threshold and have not signed up, visit the government portal searching for “Making Tax Digital for Income Tax” to complete registration before 7 August.
Good News on Late Filing Penalties
HMRC has confirmed a soft-landing period: no penalty points will be issued for late quarterly updates during this first implementation year. However, standard penalties for late annual Self Assessment returns and overdue tax payments remain fully in force.
Future Threshold Reductions
If your property income is currently below £50,000, keep the upcoming phase-in dates on your radar:
- April 2027: Mandatory for qualifying income over £30,000
- April 2028: Mandatory for qualifying income over £20,000
If you need guidance on choosing compatible software or understanding allowable expenses under MTD, please reach out to our trusted partners who can help simplify the process:
https://empo.co.uk/suppliers/august/
https://empo.co.uk/suppliers/dr-tax/
https://empo.co.uk/suppliers/rogers-spencer-chartered-accountants/
https://empo.co.uk/suppliers/arendelle/
Professional and friendly accountancy help for every aspect of your business