The first MTD for Income Tax filing deadline is approaching: are you prepared?

Published: 16/06/2026 By Sarah-Jane Crean

Making Tax Digital for Income Tax (MTD for ITSA) became mandatory from 6th April 2026 and the first quarterly reporting period is nearly over. For many landlords and sole traders, this is the first real experience of reporting income and expenses directly to HMRC under the new digital tax system.

The first MTD ITSA quarter runs from either 1st April - 30th June or 6th April - 5th July, depending on your reporting basis. An important deadline is now approaching as the first quarterly update (or quarterly return if you prefer that terminology) must be submitted to HMRC by 7th August 2026. In practical terms, anything you’ve earned or spent in your business or rental property since April should already be recorded digitally if the rules apply to you.

With the deadline fast approaching, now is a good opportunity to check that your records are up to date, your software is working correctly and your reporting processes are in place.

A quick reminder of what MTD requires
Under MTD for Income Tax, affected taxpayers must:

• Keep digital records of all income and allowable expenses
• Use approved compatible software to maintain those records
• Submit quarterly updates to HMRC throughout the year
• Complete an end-of-year finalisation process

This represents a significant change from the traditional Self Assessment system, where reporting was largely focused on a single annual tax return in January.

Who needs to comply?
The rules currently apply to sole traders and landlords whose combined business and property income exceeded £50,000 in the tax year ended 5th April 2025. If you fall into this category, you should already be keeping digital records and preparing to submit your first quarterly update in August.

What should you be doing now?
With the 7th August 2026 deadline approaching, now is a good time to get organised, review your processes and identify any issues before your first submission:

• Check whether MTD applies to you
• Make sure you've got the right software in place (or confirm your current system is ready)
• Move your bookkeeping fully into a digital system 
• Bring your  records up to date to ensure nothing gets missed at submission stage

Many of the problems we are seeing stem from incomplete records, reliance on spreadsheets that are not fully MTD compliant, or uncertainty about how the quarterly reporting requirements work in practice. However, addressing these issues now can help avoid unnecessary complications later in the tax year. Check out our MTD what you need to know page.

How TBA can support you
We are here to make the transition as straightforward and stress-free as possible. Whether you are a landlord with rental income or a sole trader running your own business, we can help you:
• Work out if and when MTD applies to you
 • Choose and set up the right software for your setup
 • Move you from spreadsheets or paper records to a proper digital system
 • Clean up and review your records so everything is accurate and compliant
 • Take care of your quarterly submissions if you’d rather not deal with them
 • Provide ongoing support so you stay on track all year round 

Don't wait until the 7th August deadline
MTD is no longer something on the horizon, it's already in place. With the first quarterly deadline approaching, the priority is making sure your systems are set up correctly and operating as they should. If you are finding any aspect of MTD challenging, or you are unsure whether your current setup meets the requirements, we offer a range of professional services to support you. This includes bookkeeping, MTD-compatible software setup, and preparation and submission of your quarterly updates to HMRC. All our costs are listed on our dedicated MTD page

By getting the right processes in place now, you will find it much easier to stay on top of your reporting requirements going forward