Making Tax Digital for Income Tax is now live for the first wave of taxpayers. If you are a sole trader or landlord in Slough and your qualifying income from self-employment and property was over £50,000 in the 2024/25 tax year, you must use MTD from 6 April 2026.
The first quarterly update deadline is 7 August 2026. This is not a tax payment deadline, but it is still important. You need to keep digital records and use compatible software to send HMRC a summary of your self-employment and property income and expenses.
This guide explains who is affected, what needs to be submitted, how the 2026/27 soft landing works, and what Slough sole traders should do now.
What is the 7 August 2026 deadline for?
The first MTD quarterly update deadline is 7 August 2026. For taxpayers using the standard tax-year quarters, the first update relates to the period from 6 April 2026 to 5 July 2026.
Making Tax Digital changes how sole traders and landlords report business and property income. Instead of keeping annual records and filing only one Self Assessment tax return after the year ends, you must keep digital records and send quarterly updates using MTD-compatible software.
A quarterly update is a summary, not a full tax return. HMRC does not receive every receipt, invoice or bank transaction. Your software adds together the digital records for your self-employment or property business and sends category totals to HMRC.
Need Help With Your Accounts Or Tax?
Whether you need support with self assessment, VAT returns, payroll, bookkeeping, CIS, company accounts or corporation tax, Asmat & Co Accountants can provide clear, practical advice for your business or personal finances.
You do not need to make year-end tax adjustments before sending a quarterly update. Those adjustments are dealt with later when you submit your final tax return through MTD software.
Most importantly, quarterly reporting does not mean quarterly tax payments. Your tax for 2026/27 remains due under the usual Self Assessment payment timetable, with the final return and tax due by 31 January 2028.
Who is affected by the 7 August deadline?
The first phase applies to sole traders and landlords registered for Self Assessment whose qualifying income from self-employment and property was over £50,000 in the 2024/25 tax year.
Qualifying income is based on gross income before expenses, not profit. This means a sole trader with turnover above £50,000 may be in scope even if their taxable profit is much lower.
Limited companies are not in scope for MTD for Income Tax. Partnerships are also not yet within the mandatory timetable, with HMRC due to confirm future dates later.
If you have both self-employment and property income, the streams are combined when checking whether you cross the threshold. If you are in scope, you usually need separate digital records and separate quarterly updates for each self-employment or property business.
| Phase | Who is affected | MTD start date | First quarterly deadline |
|---|---|---|---|
| Phase 1 | Sole traders and landlords with qualifying income over £50,000 | 6 April 2026 | 7 August 2026 |
| Phase 2 | Sole traders and landlords with qualifying income over £30,000 | 6 April 2027 | 7 August 2027 |
| Phase 3 | Sole traders and landlords with qualifying income over £20,000 | 6 April 2028 | 7 August 2028 |
| Partnerships | Timeline to be confirmed | TBC | TBC |
| Limited companies | Not currently within MTD for Income Tax | Not applicable | Not applicable |
What exactly do you need to submit?
For your first quarterly update, your software will submit totals for the income and expense categories used for your self-employment or property business.
For a sole trader, this may include turnover, cost of goods, employee costs, premises costs, repairs, travel, professional fees and other allowable expenses. The categories broadly follow Self Assessment categories.
You do not need to attach receipts or upload documents. You do need to keep digital records that support the figures. If HMRC asks questions later, your records should show where the numbers came from.
If you use bookkeeping services for small businesses throughout the quarter, this should be a review-and-submit process rather than a last-minute scramble.
What the soft landing means
HMRC has confirmed that there are no penalties for missing quarterly update deadlines for the 2026/27 tax year. This means no penalty points will be issued if a quarterly update is late during the first MTD year.
That is helpful, but it does not make the rules optional.
You still need to keep digital records. You still need to send quarterly updates before you can submit your MTD tax return. The soft landing also does not protect you from penalties for a late tax return, inaccuracies or late payment of tax.
In plain English: HMRC is giving taxpayers breathing space on quarterly-update penalties for the first year, not permission to ignore MTD.
Key dates for 2026/27
If you use standard tax-year quarters, the main dates are:
| Quarter | Period | Deadline |
|---|---|---|
| Q1 | 6 April 2026 to 5 July 2026 | 7 August 2026 |
| Q2 | 6 July 2026 to 5 October 2026 | 7 November 2026 |
| Q3 | 6 October 2026 to 5 January 2027 | 7 February 2027 |
| Q4 | 6 January 2027 to 5 April 2027 | 7 May 2027 |
| Final tax return | Full 2026/27 tax year | 31 January 2028 |
If you elect to use calendar quarters, the periods run from the 1st of the month rather than the 6th, but the filing deadlines remain the same.
Are you registered for MTD?
Having accounting software is not the same as being signed up for MTD.
You need to sign up through HMRC, choose compatible software and authorise that software to connect with HMRC. If you use an accountant, they can sign you up and act as your MTD agent.
If you are unsure whether you are properly registered, check now. Do not leave this until the day before the deadline. Our self-assessment tax return services can help with registration, software authorisation and submissions.
What software do you need?
MTD for Income Tax requires software that works with HMRC’s systems. Spreadsheets alone are not enough unless they are digitally linked to suitable bridging software.
At Asmat & Co, we work with QuickBooks as our main platform. As certified QuickBooks ProAdvisors, we can set up your account, connect bank feeds, map categories correctly and manage quarterly updates on your behalf.
If you are still deciding, our MTD software shortlist for small businesses compares the main options.
What if your records are behind?
Do not panic. If your records since 6 April are incomplete, there is still time to catch up before 7 August.
Start by gathering bank statements, invoices, receipts and any mileage or expense records. Then bring the transactions into your chosen software and categorise them correctly. Our guide on what to do if your bookkeeping is behind explains the recovery process, while monthly bookkeeping with an online accountant shows how to avoid the same problem next quarter.
If you work with us for business bookkeeping services, we keep your records current so quarterly updates are ready ahead of time.
Sole traders with property income
If you are self-employed and also receive rental income, you need to be especially careful. The income streams are combined to test whether you are in scope, but the records and updates may need to be handled separately.
Our guides on tax returns for landlords and landlord accounting guide explain the property side in more detail.
What about the January 2027 Self Assessment deadline?
Phase 1 taxpayers still need to file their 2025/26 Self Assessment return by 31 January 2027. That return covers the year before MTD started.
This means many sole traders will be managing traditional Self Assessment for 2025/26 while also sending MTD quarterly updates for 2026/27. Our accountants for tax returns service can manage both so nothing is missed.
Common mistakes to avoid
The most common mistakes are failing to sign up with HMRC, assuming software alone is enough, mixing personal and business transactions, ignoring property income, treating the soft landing as a full exemption, and leaving records until the week before the deadline.
Our guide to MTD pitfalls and 10 common mistakes is worth reading before your first submission.
How Asmat & Co helps Slough sole traders
As small business accountants in Slough, we help sole traders, landlords and small businesses prepare for MTD properly. We handle registration, QuickBooks setup, bookkeeping, quarterly updates, VAT returns, payroll and year-end tax returns under one joined-up service.
For clients nearby, our accounting firms in Reading team offers the same level of support.
For more background, read our guides on MTD for income tax, MTD timelines and quarterly updates, self-assessment for sole traders, cash basis vs traditional accounting, registering as self-employed in the UK and amending a tax return.
Frequently asked questions
I have not signed up for MTD yet. Can I still meet the 7 August deadline?
Yes, but you need to act quickly. You must sign up, choose compatible software, authorise it and bring your records up to date.
Does the 7 August 2026 deadline apply to Phase 2 or Phase 3 taxpayers?
No. It applies to Phase 1 taxpayers with qualifying income over £50,000. Phase 2 starts in April 2027 and Phase 3 starts in April 2028.
Do I need to submit a quarterly update if I had no income?
Yes. If you are in scope, you must still submit an update, even if there was no activity for that period.
Does the soft landing mean I can ignore Q1?
No. There are no penalty points for late quarterly updates in 2026/27, but you still need to submit them before your final MTD tax return.
Can my accountant submit updates for me?
Yes. You can authorise your accountant as your MTD agent, and they can submit quarterly updates and your final tax return on your behalf.
Do not leave the 7 August deadline to chance
The first MTD quarterly deadline sets the tone for the rest of the year. Getting registered, using the right software and keeping clean records now will make every future deadline easier.
Contact Asmat & Co today to get your 7 August submission sorted
Need Help With Your Accounts Or Tax?
Whether you need support with self assessment, VAT returns, payroll, bookkeeping, CIS, company accounts or corporation tax, Asmat & Co Accountants can provide clear, practical advice for your business or personal finances.
