Making Tax Digital Starts for Self-Employed: First Quarterly Deadline 7 August 2026
From 6 April 2026, self-employed workers and landlords earning over £50,000 must switch to quarterly digital tax reporting. HMRC has offered a penalty 'soft landing' for 2026–27 to ease the transition—but late payments still carry interest charges.
What's changing?
From 6 April 2026, Making Tax Digital (MTD) for Income Tax officially begins. This isn't just a minor update to how you submit forms; it's a total overhaul of the relationship between small businesses and HMRC. If you're self-employed or a landlord in the UK with qualifying income of more than £50,000, you must now move from one annual tax return to four quarterly updates of your business income and expenses.
Key deadlines and the 'soft landing'
Your quarterly submissions are due by these dates, all falling by the 7th of the month after each quarter ends:
- Q1 (6 April – 5 July 2026): Due by 7 August 2026
- Q2: Due 7 November 2026
- Q3: Due 7 February 2027
- Q4: Due 7 May 2027
For 2026–27 only, no Making Tax Digital for Income Tax penalties will be issued for late submissions of quarterly updates in the 2026-27 tax year. This grace period is to help people get to grips with MTD for IT without fear of immediate consequences. However, late payment penalties and penalties for your annual Final Declaration still apply in full.
What you must do now
You must keep digital records continuously. Paper receipts in a shoebox will no longer cut it — at least not on their own. Every income and expense item needs to be recorded digitally, with the date, amount, and category logged in MTD-compatible software. You'll need to download MTD-compatible software (such as QuickBooks, Xero, or FreeAgent) before your first deadline on 7 August 2026.
If you are a foreigner settling in the UK as a self-employed worker or landlord, this is crucial: your business income now triggers quarterly reporting immediately, even if you've only just arrived. HMRC integration with digital systems means your bank feeds and property records will be cross-checked more rigorously than before. Set up your software now so you have time to understand the process before August.
Sources
MyHAbroad is an independent app and is not affiliated with, endorsed by, or representing any government or public authority. This is general information only — not legal, tax, medical, or financial advice. Always verify with the official source before acting:
