MTD First Quarterly Update: What to Send HMRC by 7 August 2026
By Remus Pantea · 14 July 2026 · 8 min read
Quick answer: By 7 August 2026 you send HMRC one set of totals — your business income and your expenses by category — covering 6 April to 5 July 2026, through MTD-compatible software. No receipts, no transaction lists, and nothing to pay with it. If you get it wrong, the next update corrects it automatically. This guide covers exactly what goes in, step by step.
First: does the 7 August deadline apply to you?
The first MTD ITSA quarterly deadline applies to sole traders and landlords whose gross self-employment plus property income was over £50,000 on their 2024/25 tax return. Gross means turnover before expenses — not profit. If that isn't you, your join date is April 2027 (£30,000) or April 2028 (£20,000), and you stay on the ordinary annual Self Assessment cycle for now.
Not sure? Our MTD Join Date + Deadline Checker tests your qualifying income and gives you your exact first deadline.
What the update actually contains
A quarterly update is summary figures only:
- Total business income for the period 6 April – 5 July 2026
- Total expenses, split by HMRC's standard categories — the same categories as Self Assessment (cost of goods, travel, premises, office costs, professional fees and so on)
That is the whole submission. No receipt images, no individual transactions, no commentary, no tax calculation. Your software sends the totals along with the period dates and your taxpayer references, and HMRC replies with a submission receipt and an updated estimate of your tax bill.
What you do need behind the totals is digital records — a record of each transaction's date, amount and category kept in MTD-compatible software. HMRC can ask to see them in an enquiry, and typing a quarter's worth of paper into a spreadsheet on 6 August is exactly the panic MTD was designed to replace.
The period: 6 April to 5 July 2026
HMRC's standard first quarter runs 6 April – 5 July, due on 7 August. If your accounts run to 31 March you can elect calendar quarters instead (1 April – 30 June, same 7 August deadline) — but you must select that in your software before sending your first update. Most sole traders stay on the standard quarters.
| Update | Period covered (cumulative) | Deadline |
|---|---|---|
| Q1 — this one | 6 April – 5 July 2026 | 7 August 2026 |
| Q2 | 6 April – 5 October 2026 | 7 November 2026 |
| Q3 | 6 April – 5 January 2027 | 7 February 2027 |
| Q4 | 6 April – 5 April 2027 | 7 May 2027 |
| Final Declaration | Full 2026/27 year | 31 January 2028 |
How to get it done — the short version
- Gather everything from 6 April to 5 July: receipts, invoices, bank statements. If some receipts only exist in a van door pocket, this is the step that hurts.
- Reconcile against the bank account: every business transaction should match a record; anything unmatched is personal, a drawing, or a missing receipt.
- Categorise: each expense goes into an HMRC category. Software (or a receipt-scanning app that categorises for you) does the heavy lifting here.
- Submit through MTD-compatible software and save the confirmation receipt. There is no HMRC web form for MTD ITSA — approved software is the only route.
For the fuller six-step routine you'll repeat every quarter, see our MTD ITSA quarterly checklist.
Started late? Records in a mess? Here's the honest position
Two facts take the pressure off. First, updates are cumulative: each one covers from 6 April to the end of the latest period, so any error or omission in Q1 is corrected simply by having the right figures in your records when Q2 goes in on 7 November. You never resubmit a quarter. Second, 2026/27 is a soft-landing year — HMRC has confirmed no penalty points for late quarterly updates (full detail: MTD penalty rules year 1, and if the deadline has already passed, what actually happens if you miss it).
Neither fact makes the update optional. The obligation stands, HMRC sees your filing pattern, and the whole point of year one is building the habit before points start in 2027/28.
Is anything due to pay on 7 August?
No. Quarterly updates are informational. HMRC uses them to show you a running estimate of your 2026/27 bill — genuinely useful for putting the right money aside — but the tax itself is due 31 January 2028, with the usual payments on account if your bill is over £1,000.
FAQ
Do I have to pay any tax with the 7 August 2026 update?
No. A quarterly update is totals only — HMRC shows you a running estimate of your bill, but no payment is due with it. Tax for 2026/27 is due by 31 January 2028.
Do I send receipts or invoices to HMRC?
No. The update contains only category totals for income and expenses. You must keep the underlying digital records, but nothing transaction-level is submitted.
What happens if I miss the 7 August 2026 deadline?
For the 2026/27 tax year HMRC operates a soft landing: no penalty points are charged for late quarterly updates. Submit as soon as you can — the obligation itself does not disappear.
What if I make a mistake in my first update?
Updates are cumulative, so you simply correct the figures in your records and the next update (due 7 November) automatically supersedes the first. You do not need to resubmit Q1.
Sources
- HMRC, Use MTD for Income Tax: send quarterly updates (periods, deadlines, cumulative rule, corrections)
- HMRC, Use MTD for Income Tax: keep digital records (date, amount, category requirement)
- HMRC, Check if you're eligible for MTD for Income Tax
- HMRC, Penalties for Making Tax Digital for Income Tax
- PocketReceipt, Making Tax Digital UK guide · MTD quarterly checklist