MTD filing period

The first MTD filing period opens soon and tax payers need to be aware of what they need to do before August.

Making Tax Digital for Income Tax is now moving from preparation to action for many sole traders and landlords.

If you are within the first group required to join MTD for Income Tax, the first quarterly update period is almost upon us. The first submission deadline is 7 August 2026, so records for the opening period will need to be reviewed and submitted through compatible software by the first week of August.

This is a huge change to the way many taxpayers report income and expenses to HMRC. Instead of pulling everything together once a year for a Self-Assessment tax return, MTD requires digital records to be kept during the year and quarterly updates to be sent to HMRC using recognised software.

Who is affected first?

MTD for Income Tax applies first to sole traders and landlords with qualifying income above £50,000 based on the 24.25 year of trade.

The threshold is due to reduce in future years, meaning more sole traders and landlords will need to comply.

What is the first filing?

It is not a full tax return. It is a summary of income and expenses for the period, produced from your digital records and submitted through MTD-compatible software.

The first update covers the period from 6 April 2026 to 5 July 2026, with a deadline of 7 August 2026.

What should you do now?

You should check that you are using MTD-compatible software, that your bank feeds or bookkeeping records are working correctly, and that income and expenses are being posted to the right categories.

If you still use spreadsheets, you may need bridging software to make the submission to HMRC.

You should also make sure that your accountant or bookkeeper has access to the information they need.

Leaving everything until the first week of August could create unnecessary pressure, especially if software access, authorisation or bookkeeping corrections are still outstanding.

Something to remember is that even with little to no activity, if you are deemed to be within MTD based on the qualifying period, you may still need to submit an update to HMRC.

We have been helping our clients for the past year to check whether MTD applies to them, reviewing their bookkeeping process, confirming whether their software is suitable, and preparing for the first quarterly update deadline.

If you are unsure whether you are affected, or if you have not yet prepared for the first MTD filing, please contact us as soon as possible so that we can help you get ready before the August deadline.