Sole traders and landlords affected by the MTD for Income Tax changes are being reminded that the first quarterly update is due Friday 7th August 2026.
This comes just a couple of weeks after research from Lloyds Banking Group found that 55% (around 475,000) of taxpayers are yet to complete preparations for this first phase.
Who is Affected by Making Tax Digital?
MTD for Income Tax Self-Assessment (ITSA) came into effect from the 6th April of 2026 and will follow a phased rollout, becoming mandatory for individuals once they reach the earnings threshold.
So, if you are a sole trader or a landlord, you will be affected from:
- 6th April 2026, if you have an annual business or property income of more than £50,000
- April 2027, if you have an annual business or property income of more than £30,000
- April 2028, if you have an annual business or property income of more than £20,000
Need help deciding between Limited or Umbrella? We are happy to help- give Lauren a call on 01442 795 100 or email lauren@dolanaccountancy.com
Making Tax Digital Responsibilities
- Keep digital records of your income and expenses using HMRC-compatible software.
- Submit quarterly updates to HMRC on: 7th August, 7th November, 7th February and 7th May. These will give you an estimated tax bill as you go, which can be corrected later if needed and do not trigger payments.
- Complete a final end-of-year declaration – you’ll do this after your fourth quarterly update. This replaces the traditional self assessment return and is where everything is checked, corrected and finalised.
MTD for ITSA: First Quarterly Update
Data from HMRC found that as of the 23rd July 2026, there were still more than 864,000 sole traders and landlords yet to submit their first quarterly update.
It’s important to note that this is not a tax return, but a summary of your figures that need to be sent directly to HMRC through recognised software.
Take a look at our Making Tax Digital: Income Tax Quarterly Updates Explained page for more information.
Making Tax Digital Support
At Dolan Accountancy, we can provide the right MTD support you need to meet your obligations, including helping to manage your quarterly submissions.
Click here to take a look at what we offer in our MTD package.
For more information, don’t hesitate to get in touch with Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.
Trusted by over 1,000 contractors |