7 August MTD deadline: the last-minute checklist

Step 1: Check you are actually in scope

MTD for Income Tax is mandatory from April 2026 for sole traders and landlords whose gross income was over £50,000 in 2024/25. Gross income, not profit. If you are under that, you are not in this first wave and 7 August is not your deadline yet. Confirm in two minutes with the free MTD for Income Tax deadline checker (no signup), or read does MTD apply to me?

Step 2: Get your records together (about 30 minutes)

You do not need a perfect bookkeeping system by Friday. You need the totals for one quarter. The fast triage:

1. Pull your business bank statements for 6 April to 5 July (and any card or cash records).
2. Total the money in from your trade or property. That is your income figure.
3. Group the money out into a few standard categories (see allowable expenses): office costs, travel, stock, and so on.
4. Keep the workings somewhere you can find them. A simple spreadsheet is fine.

That is enough to file. Quarterly updates are cumulative and correct forward, so an approximate first quarter is normal, and the year-end final declaration is where the numbers are finalised.

Step 3: Pick software that can actually file

You cannot file a quarterly update by hand. You send it from HMRC-recognised software, and GOV.UK lists the recognised options, including free ones. If you are choosing now, our honest comparisons help:

• Free vs paid accounting software for UK sole traders
• Spreadsheet vs accounting software

The software is the quick part. Sign up, connect it, enter your category totals, and submit before 7 August.

Step 4: What happens if you miss 7 August

The honest answer for this first year is reassuring. HMRC has confirmed a soft landing for 2026/27: no late-submission penalty points for quarterly updates in the first year for the first wave. So a late first update this year should not cost you points. You still need to send it, and you should not treat the grace as a reason to skip it, but the pressure is genuinely lower than the headlines suggest. Full detail is in our deadlines and penalties guide.

The one-page version

1. Confirm you are in scope (deadline checker).
2. Total your 6 April to 5 July income and expenses by category (about 30 minutes).
3. Get HMRC-recognised software (free options on GOV.UK).
4. Enter the totals and submit before 7 August.
5. Save the confirmation, and diarise 7 Nov, 7 Feb, 7 May and the 31 January final declaration.

FAQ

It is nearly 7 August and I have done nothing. Am I in trouble?

Probably not as much as you fear. For the 2026/27 tax year HMRC has confirmed a soft landing: no late-submission penalty points for quarterly updates in the first year for the first wave. You still need to send the update, but a late first one this year should not cost you points. Always check current GOV.UK guidance for your own situation.

What is the minimum I actually have to do by 7 August?

First confirm you are in scope (qualifying income over £50,000 from April 2026). If you are, you send one quarterly update for 6 April to 5 July: total business income and allowable expenses grouped by category, from HMRC-recognised software. It is not a tax return and not a payment.

Can I get recognised software in time?

Yes. GOV.UK lists HMRC-recognised software, including free options. You can sign up, connect it, and file within the same week. The slow part is usually getting your figures together, not the software.

What if my records are a mess?

Do the fast triage: pull your business bank statements for 6 April to 5 July, total the money in, and group the money out into a few expense categories. It does not have to be perfect. Quarterly updates are cumulative and correct forward, and the final declaration in January is the definitive figure.