The first Making Tax Digital deadline is 7 August 2026.
Making Tax Digital for Income Tax is now in place for businesses and landlords over the £50,000 threshold. The next step is the first submission deadline, when many people will feel the change.
If you are within scope, this is when your bookkeeping needs to be ready.
Who needs to submit
From April 2026, MTD applies to:
- Sole traders with income over £50,000
- Landlords with property income over £50,000
- Combined income over £50,000
From April 2027, this drops to £30,000.
When is the first deadline
The first quarterly period runs from 6 April to 5 July.
The first Making Tax Digital deadline is 7 August 2026.
What needs to be submitted
You need to send a summary of your income and expenses for the period using MTD-compatible software.
This is not a full tax return, but your figures must be accurate and based on up-to-date records.
How the penalty system works in the first year
HMRC uses a points-based system for late submissions, similar to a driving licence.
- You receive points for missed deadlines
- A £200 penalty is issued once you reach 4 points
However, there is a soft landing period for the 2026/27 tax year.
This means:
You must still submit quarterly updates on time; however, no penalty points will be issued for late quarterly submissions during this first year
The quarterly deadlines covered by this are:
- 7 August 2026
- 7 November 2026
- 7 February 2027
- 7 May 2027
The first real risk of penalty points comes later.
You could receive your first point if you miss the deadline for the final declaration, which is due by 31 January 2028.
How to prepare
To stay on track, you should:
- Keep your records up to date
- Use MTD-compatible software
- Reconcile your bank accounts
- Check your figures before submitting
Why this matters
Even without penalties in the first year, deadlines still matter. Late or incomplete records will make future submissions harder.
Using this first year to build good habits will make ongoing MTD reporting much easier.
How Rosemary Bookkeeping can help
If you’re uncertain about your readiness, your local Rosemary Bookkeeper can assist you in preparing and submitting your records correctly.
