Your first MTD quarterly submission explained: A step-by-step guide for sole traders and landlords (2026)

What is the first MTD quarterly submission all about?

The first MTD quarterly submission covers the total income and expenses of a landlord or sole trader from 6 April 2026 to 5 July 2026. Unlike a tax return, there is no need to account for or adjust any taxes, but only to share a summary using MTD-compliant software.

Submission deadlines and timelines

While the deadline for the first submission was 7 August 2026, HMRC is not issuing any penalty points yet for missing the deadline. For future submissions, the deadlines are as follows.

• Second update: (6 July - 5 October) - 7 November 2026
• Third update: (6 October - 5 January) - 7 February 2027
• Fourth update: (6 January - 5 April) - 7 May 2027

These deadlines are only for submitting quarterly updates; the cut-off date for the final declaration of the tax year continues to be 31 January of the following year.

Checklist to prepare before a quarterly submission

Taxpayers need to ensure they have completed the following steps before actually submitting a quarterly update to HMRC.

• Registered for MTD income tax via HMRC sign-up
• Integrated with the HMRC gateway using appropriate MTD software such as Sage, Xero, QuickBooks etc
• Correctly compiled all business/property income and expenses digital records
• All transactions in the reporting quarter have been classified correctly
• Reconciled all bank account statements to provide evidence of income and expenses

How to successfully submit a quarterly update

Step 1: Open your MTD-compatible software and choose the relevant reporting period

Step 2: Do a complete digital evaluation of all income and expenses related to the business or rental property

Step 3: Make any necessary modifications or fixes

Step 4: The software calculates the sum for all transaction types

Step 5: Re-check all data thoroughly and submit the update to HMRC

What happens if a business, sole trader or landlord fails to sign up for MTD?

According to HMRC’s previous notification, it expects around 864,000 taxpayers to sign up for MTD in the current tax year. However, recent figures from the government have revealed that only 570,000 have actually registered for MTD, with only 436,000 successfully filing quarterly updates.

For qualifying businesses, landlords and sole traders that haven’t signed up yet, HMRC will initiate a drive, starting September 2026, to sign up taxpayers they believe fall into the scope of MTD in 2026/27. This will be followed by a letter or notification advising the signed-up taxpayers on the next steps.

Should I wait for HMRC to sign me up for MTD instead of registering myself?

While it may seem easier to get automatically signed up by HMRC, you should also know the different scenarios this could lead to. The exemption from accumulating penalty points is only valid for the current tax year. In case HMRC misses signing you up for the current year and your income surpasses the MTD threshold, the chances of penalties increase.

Also, HMRC may not be fully aware of your current business or income situation and may get a few details incorrect. The best practice to avoid such unfortunate scenarios is to proactively self-register or get your accountant’s help with registration and sign-up.

Mistakes you should avoid doing

Rushing through the process

Since this is the first time submitting quarterly updates, make sure all the details entered are correct. Avoid rushing the process as unnecessary haste can lead to errors.

Not using the right software

Landlords and sole traders must verify they are using only HMRC-approved software for submitting quarterly updates.

Missing key income details

For multiple properties and businesses, each qualifying income source needs to be mentioned.

Not linking with earlier updates

Every submission is a cumulative update from 6 April onwards; changes and corrections made to previous updates affect current and upcoming calculations.

What happens after update submission?

Your first quarterly submission needs to be followed up with three more quarterly submissions for the ongoing tax year. Once you’ve submitted the update to HMRC, you can easily view your tax position on the dashboard of your software. While there is no immediate action required, landlords and sole traders can get an indicative estimate of their year-to-date income and expenses in real time.

How Abbott & Brown can help

As your one-stop accounting and tax partner, Abbott & Brown not only helps with accurate bookkeeping and filing tax returns, but we also help clients, including small businesses and landlords in the UK, comply with all MTD rules. This includes submitting quarterly updates to HMRC on your behalf and preparing your annual tax statement at the end of the tax year.

Reach out to our experts for a free, no-obligation consultation today to get the best advice and support for all your accounting and tax needs. We can also help you decide whether or not you need to sign up for MTD and handle the entire registration and onboarding process to the HMRC tax portal.

FAQs

Q1. What is MTD quarterly submission?

MTD quarterly submissions are a digital summary of business or property income and expenses submitted to HMRC every three months. These updates and summaries are shared with HMRC via a few select software providers.

Q2. Who needs to submit MTD quarterly updates?

Under the MTD guidelines for the current tax year, all landlords and sole traders with a gross income of over £50,000 need to submit quarterly updates to HMRC.

Q3. When is my first MTD quarterly submission due?

The last date for submitting the first MTD quarterly update was 7 August 2026. However, since this is the first year of the new regime, there will be no penalty points generated for late submissions.

Q4. What information is included in an MTD quarterly submission?

MTD quarterly submissions include transaction details of all business or property income and allowable expenses. This information is cumulative from the start of the tax year right up till the end of the tax year before the final Self Assessment is submitted.

Q5. What happens if there is a reporting error in submitting quarterly updates?

Taxpayers can backdate corrections or missing entries for a given quarterly update. However, given the cumulative nature of quarterly updates and the exemption from penalty points in 2026/27, there is no need to backfile any missing updates as the correct position can be caught up in subsequent updates.

Q6. What are the benefits of using an accountant for MTD?

Hiring the services of an expert tax and accounting professional helps reduce the chances of errors and missing deadlines that can lead to costly penalties. It also helps in better future planning and minimising tax by availing of the maximum reliefs.