Where you are right now
Quarter 1 of the 2026/27 tax year runs from 6 April to 5 July 2026. Your quarterly update covering this period is due by 5 August 2026 — which means you still have roughly three and a half months to get sorted.
That's enough time to set up properly, catch up on any transactions since the 6th, and have everything filed well before the deadline. The important thing is to start now, not in July.
Key dates for Quarter 1: Period runs 6 April – 5 July 2026. Submission deadline: 5 August 2026.
Are you in scope for MTD?
MTD for Income Tax is mandatory from April 2026 for sole traders (and landlords) whose gross income exceeds £50,000 in the 2024/25 tax year. If you earned over that threshold, you must now:
- Keep digital records of all business income and expenses
- Submit four quarterly updates to HMRC each tax year
- File an End of Period Statement and Final Declaration annually
All of this must be done through HMRC-recognised software — you cannot file quarterly updates directly on the HMRC website.
If your income is between £30,000 and £50,000, MTD becomes mandatory in April 2027. Below £30,000, the requirement kicks in from April 2028. But signing up early is allowed, and many people find it easier to start before they're legally required to.
What to do now, step by step
1. Sign up for MTD (if you haven't already)
You must sign up through HMRC-recognised software — not directly on the HMRC website. When you sign up through your software, it will walk you through connecting your Government Gateway account and authorising the software to file on your behalf.
You'll need your National Insurance number, your Unique Taxpayer Reference (UTR), and details of your business income source.
2. Connect your bank account
The most reliable way to keep digital records is to connect your bank account via open banking. This gives your MTD software a read-only feed of your transactions — automatically, every day — so nothing slips through. You don't need to manually upload statements or type in figures.
Under MTD, you must record each transaction individually (date, amount, and category). Connecting your bank makes this almost effortless.
3. Categorise your transactions from 6 April
Your digital records need to cover the period from 6 April onwards. If you've already had income or expenses since then, review and categorise them now. Don't leave it until July — a quarter's worth of transactions is much easier to review as you go.
HMRC requires income and expenses to be sorted into specific categories. Good MTD software will handle this automatically and flag anything that needs your input.
4. Set a reminder for 5 August
Your first submission deadline is 5 August 2026. Put it in your calendar now. Missing a quarterly deadline earns you a penalty point — accumulate four and you'll receive a £200 fine. Starting the year with a missed deadline is an avoidable way to begin.
Don't leave it until July. Reviewing a full quarter of transactions in one sitting is far more painful than checking in for a few minutes each week. The whole point of MTD is to make tax continuous — use it that way.
What records do you need to keep?
HMRC requires you to maintain a digital record of every business transaction. Each record must include:
- The date of the transaction
- The amount (income or expense)
- The category (using HMRC's prescribed categories)
You do not need to attach receipts to your quarterly updates — but you should keep them in case of an HMRC enquiry. Photographs of receipts saved in your software or cloud storage are acceptable.
What does the quarterly update actually contain?
When you file your Quarter 1 update on or before 5 August, you're submitting a summary of your income and expenses for 6 April–5 July, broken down by HMRC category. Your software compiles this from your records and sends it directly to HMRC.
No tax is due at this point. Quarterly updates are a reporting exercise — your tax bill is calculated and paid after your Final Declaration in January.
| Quarter | Period | Deadline |
|---|---|---|
| Quarter 1 | 6 Apr – 5 Jul | 5 August 2026 |
| Quarter 2 | 6 Jul – 5 Oct | 5 November 2026 |
| Quarter 3 | 6 Oct – 5 Jan | 5 February 2027 |
| Quarter 4 | 6 Jan – 5 Apr | 5 May 2027 |
Get your Q1 records sorted with Bart
Bart connects to your bank, imports your transactions from 6 April, and categorises everything automatically. Your first quarterly update will be ready to file before the 5 August deadline — with nothing to scramble.
Try Bart freeFrequently asked questions
When is the first MTD quarterly update deadline?
The first quarterly update covers 6 April to 5 July 2026, and must be submitted by 5 August 2026.
What if I haven't signed up for MTD yet?
If you're a sole trader with income over £50,000 and haven't signed up, you should do so immediately through HMRC-recognised software. You may also need to speak to HMRC about your situation — late registration can attract attention but your priority is to get compliant as quickly as possible.
Do I need to record every transaction individually?
HMRC requires you to keep a digital record of each transaction — not just totals. Each entry should include the date, amount, and category. Software like Bart imports your transactions automatically from your bank so nothing slips through.
Can I still use a spreadsheet for MTD?
You can use a bridging software solution alongside a spreadsheet, but the spreadsheet alone is not sufficient — you still need HMRC-recognised software to submit your quarterly updates. Purpose-built apps like Bart handle both the record keeping and the submission in one place.