Your first MTD quarterly update
If your qualifying income (gross self-employment plus property income) was over £30,000 in 2025/26, you need Making Tax Digital for Income Tax from 6 April 2027. Your first update is due by 7 August 2027.
Next step: Log income and expenses all year, ready for your tax return with the Self-Assessment Tax Tracker 2026/27 (£7). This calculator stays free.
Step by step
- Check you need it. Qualifying income is your gross turnover and gross rent before expenses, not profit. Employment income doesn't count.
- Choose software from GOV.UK's list of compatible software. Some is free, and bridging software can work with a spreadsheet.
- Sign up through GOV.UK (or ask your agent) before your first update is due.
- Keep digital records from 6 April 2027: every sale, rent payment and expense, in the Self Assessment categories.
- Send update 1 by 7 August 2027. It covers 6 April to 5 July (or 1 April to 30 June with calendar periods).
- Keep going: 7 November, 7 February and 7 May. Then submit your 2027/28 tax return by 31 January 2029.
Things people get wrong
- Each update is year-to-date. It covers from the start of the tax year to the end of the period, not just the last 3 months, so you can fix earlier mistakes in the next update.
- It isn't a tax return. Updates are summaries. You still file a return and pay by 31 January.
- Penalty points apply from 2027/28. There were no points for late updates in 2026/27, but from 6 April 2027 each missed deadline earns a point, and 4 points means a £200 penalty.
- Nothing to report? Send it anyway. A nil update is still required.
- Jointly let property: you can send income only, and add the expenses by resending update 4 before your tax return.
Sources: GOV.UK: send quarterly updates, GOV.UK: MTD penalties. Background in our MTD guide.
Have every number ready for your tax return, sorted into HMRC's categories.
Income and expenses logs with HMRC categories, mileage, use of home, an estimate of income tax and Class 4 NI, and year-to-date MTD quarterly totals.
Get it for £7 →Rent, costs and mortgage interest per property, with year-to-date totals for each MTD quarterly update.
Up to 6 properties with your ownership share, rent and expense logs in HMRC-style categories, year-to-date MTD quarterly totals, actual expenses vs the £1,000 property allowance, and your tax at 2026/27 rates and the new 2027/28 property rates (22% / 42%).
Get it for £6 →All 10 paid templates (worth £54) for £15: £1.50 each.
Every paid Tidy Life template in one download: budget, bills, debt, Self-Assessment, landlord & MTD, Christmas, January reset, Vinted, house move, meal plan and job hunt.
Get it for £15 →FAQs
When is my first MTD quarterly update due?
If you join on 6 April 2027, your first update covers 6 April to 5 July 2027 (or 1 April to 30 June with calendar periods) and is due by 7 August 2027.
Are there penalties for late MTD updates?
Not in 2026/27. From 2027/28, each missed quarterly deadline earns a penalty point, and reaching 4 points triggers a £200 penalty.
Do MTD quarterly updates only cover 3 months?
No. Each update covers from the start of the tax year to the end of the update period.
Kit list: Home office kit for sole traders: what you can claim and what to buy. (Our page. It includes Amazon affiliate links.)
Related calculators & guides
MTD deadline 7 Aug 2027 · Making Tax Digital for Income Tax · Landlord tax guide · Self-employed tax · Side hustle tax (£1,000 allowance)