First MTD for ITSA quarterly update

According to figures published by HMRC, more than 436,000 sole traders and landlords submitted their first quarterly Making Tax Digital for income Tax Self Assessment (MTD for ITSA) update for 2026/27, the deadline for which was the 07^th August 2026. Taxpayers who had income of £50,000 or more (before deduction of expenses) from self-employment and/or property in 2024/25 must comply with MTD for ITSA from the 06^th April 2026. This requires them to keep digital records and file quarterly updates of income and expenses using software compatible with MTD for ITSA.

Clients who are within MTD for ITSA for 2026/27 and have yet to file their first quarterly update are urged to do so as soon as possible. HMRC are not charging late filing penalties this year. However, from the 06^th April 2027, a penalty point will be charged for each late quarterly update. Once a taxpayer has accumulated four penalty points, they will receive a penalty of £200. Points expire after a fixed period of compliance.