Your First MTD Quarterly Submission Is Due 7 August 2026 — Here's Exactly What to Do

By RentVault Team · Published 2026-06-04 · Updated 2026-06-20 · 7 min read

Your first MTD quarterly update, covering April to June 2026, is due by 7 August 2026. Here is exactly what to submit, how to submit it, and what happens if you miss the deadline.

Deadline: 7 August 2026. If your gross income from property and self-employment exceeds £50,000 per year, you entered Making Tax Digital for Income Tax in April 2026. Your first quarterly update covering April to June 2026 must be submitted to HMRC by 7 August 2026. HMRC will not apply penalty points for missed quarterly updates during 2026/27, but submitting on time from the start builds the habit that protects you when penalties apply in later years. This guide tells you exactly what to do.

Who needs to submit by 7 August 2026?

The 7 August 2026 deadline applies to landlords and self-employed individuals who:

• Have gross income from property and/or self-employment exceeding £50,000 per year
• Registered for MTD ITSA before or from April 2026
• Are filing their income tax as an individual — not through a limited company

If your gross income is between £30,000 and £50,000, your MTD start date is April 2027 — this August deadline does not yet apply to you, but it is worth using the time to prepare.

Not sure if you're in scope? Use RentVault's free MTD Readiness Checker to confirm whether MTD applies to you and from which date.

What exactly is a quarterly update?

A quarterly update is a digital summary of your income and expenses for a three-month period, submitted to HMRC through MTD-compatible software. It is not a tax return. You are not paying tax when you submit it. You are simply reporting a running summary of your financial position so HMRC has up-to-date information throughout the year.

Quarter 1 covers the period 6 April 2026 to 5 July 2026. The submission deadline is 7 August 2026 — just over a month after the quarter ends.

The update includes:

• Total rental income received during the quarter, broken down by property
• Total allowable expenses paid during the quarter, broken down by category
• Finance costs (mortgage interest) — reported separately, not deducted from income
• Any other property income (Airbnb, short let, Rent a Room)

It does not need to be perfect. HMRC understands that quarterly figures are estimates that will be reconciled at year end. What matters is that you submit something on time.

What you need to have ready before you submit

To complete your Quarter 1 submission you need records of everything that happened between 6 April and 5 July 2026.

Income records

• Every rent payment received — date, amount, which property
• Any Airbnb, VRBO, or short-let income — date, amount, platform
• Any other property income — service charges, parking, storage

Expense records

• Mortgage interest payments — the interest portion only, not capital repayments
• Letting agent fees and management charges
• Repairs and maintenance costs — with receipts
• Insurance premiums
• Utility bills paid by the landlord
• Professional fees — accountant, solicitor, surveyor
• Ground rent and service charges
• Travel costs for property visits — at HMRC's approved mileage rate
• Stationery, phone, and other administrative costs attributable to the rental business

Do not include mortgage capital repayments. The portion of your mortgage payment that reduces your loan balance is not a deductible expense and must not appear in your MTD submission as either an expense or a finance cost. Only the interest element of your mortgage payment is relevant. If you are unsure which part of your payment is interest and which is capital, check your mortgage statement or ask your lender.

The Section 24 finance cost position

Section 24 of the Finance Act 2015 restricts the tax relief landlords can claim on mortgage interest. Under Section 24, mortgage interest is not deductible from rental income as an expense. Instead, you receive a basic rate (20%) tax credit on the finance costs when your annual tax liability is calculated.

In your quarterly update, mortgage interest should be reported in the finance costs field — separately from your allowable expenses. Your MTD software should handle this automatically if your expenses are correctly categorised. If you are using bridging software or manually entering figures, make sure mortgage interest is not listed under allowable expenses.

Getting this wrong does not cause an immediate problem — it will be corrected at the end of period statement — but it means your quarterly figures will not accurately reflect your tax position, which can cause surprises later.

Step by step: how to make your Quarter 1 submission

1. Log into your MTD-compatible software. If you are using RentVault, go to Finance & MTD and select MTD Quarterly Export. If you are using other software, locate the MTD submission section. If you are using bridging software, open your spreadsheet records first.
2. Check your income and expense records are complete for the quarter. Review all transactions between 6 April and 5 July 2026. Check nothing is missing — a forgotten repair invoice or rent payment will need to be corrected later. If using RentVault with a bank feed, check that all transactions have been matched and categorised correctly.
3. Review the category totals. Before submitting, check the totals look reasonable. Income should match what you expected to receive. Expenses should reflect what you actually spent. Finance costs should show mortgage interest only — not capital. If anything looks wrong, investigate before submitting.
4. Generate the quarterly update. In RentVault, click Generate MTD Export for Quarter 1 (April–June 2026). The export will contain your figures in the format required for HMRC submission. Review it before proceeding.
5. Submit to HMRC through your software. Most MTD software submits directly to HMRC through their API. Follow your software's submission flow. You will receive a confirmation reference number from HMRC when the submission is accepted. Keep this reference.
6. Send a copy to your accountant if applicable. If your accountant handles your MTD submissions, send them the quarterly export pack now — do not wait until July. Give them time to review and submit before the 7 August deadline. In RentVault, use the one-click accountant pack to send everything they need in a single email.

What happens if you miss the 7 August deadline?

HMRC will not apply penalty points for missed quarterly updates during 2026/27. In later years, penalties apply after reaching the four-point threshold under HMRC's points-based system:

• Each late quarterly submission earns one penalty point
• Threshold for quarterly filers: 4 penalty points
• A financial penalty is triggered when the threshold is reached
• Points expire after 24 months of full compliance

A missed deadline this year will not cost you money — but building the habit of submitting on time now protects you when the penalty regime applies. The practical advice is simple: submit something on time, even if your records are not perfectly complete. An approximate submission can be amended later. A missed deadline cannot be undone.

Late payment interest still applies. The quarterly update does not trigger a tax payment. However if your annual tax bill is higher than your payments on account and you pay late, interest accrues from the due date. Keeping accurate quarterly records throughout the year means no surprises at the end of period statement in January.

The remaining quarterly deadlines for the 2026/27 tax year

• Quarter 1 (6 April – 5 July 2026) — deadline 7 August 2026
• Quarter 2 (6 July – 5 October 2026) — deadline 7 November 2026
• Quarter 3 (6 October – 5 January 2027) — deadline 7 February 2027
• Quarter 4 (6 January – 5 April 2027) — deadline 7 May 2027
• End of Period Statement (full year 2026/27) — deadline 31 January 2028
• Final Declaration (replaces self assessment return) — deadline 31 January 2028

Add all six dates to your calendar now. RentVault sends automatic reminders before each quarterly deadline so nothing slips.

Common mistakes to avoid on your first submission

• Including mortgage capital repayments as an expense or finance cost
• Putting mortgage interest under allowable expenses instead of finance costs
• Forgetting income from short-let platforms like Airbnb or VRBO
• Missing repair costs because receipts weren't kept digitally
• Waiting until the last week of July to start — give yourself and your accountant time
• Submitting through an unregistered or non-MTD-compatible tool
• Not keeping your HMRC submission confirmation reference number

If you haven't registered for MTD yet and you should have

If your gross income exceeds £50,000 and you have not yet registered for MTD ITSA, you are already non-compliant from April 2026. You should register immediately through your Government Gateway account or through your MTD software provider. Late registration does not retrospectively incur penalties for the period before registration, but HMRC may enquire about the delay. Register and start filing as soon as possible.

Not sure if your income exceeds the threshold? The threshold applies to gross income — total rental income received before any deductions, plus any self-employment income. If your rental income plus any other self-employment income combined exceeds £50,000, you are in scope. Use our free MTD Readiness Checker to confirm.

Frequently asked questions

Q: Do I pay tax when I submit the quarterly update?

No. The quarterly update is a reporting submission only. No tax payment is triggered by submitting it. Your tax liability is calculated at the end of the tax year through the end of period statement and final declaration, with payment due by 31 January 2028 for the 2026/27 tax year.

Q: My records for April to June are incomplete. Should I still submit?

Yes — submit what you have. An incomplete but submitted quarterly update is better than a missed deadline. You can amend your figures through a later submission or at the end of period statement. HMRC will not apply penalty points for missed quarterly updates during 2026/27, but in later years a missed deadline earns a penalty point — so build the on-time habit now.

Q: My accountant handles my tax. Do I still need to do anything?

Your accountant needs your records in order to submit on your behalf. Send them your income and expense summary for April to June as soon as possible — do not wait until late July. In RentVault, the one-click accountant pack provides everything they need in a single export. Give them enough time to review and submit before 7 August.

Q: I have multiple properties. Do I submit one update or one per property?

One quarterly update covering all your properties combined. Your MTD software consolidates income and expenses across your portfolio into a single submission. Within your records, however, income and expenses should be tracked per property — RentVault does this automatically.

Q: What if I made a mistake on a previous quarterly submission?

Quarterly updates can be amended at any time before the end of period statement is submitted. If you realise you made an error — missed an income entry, miscategorised an expense — amend it through your software as soon as you notice. HMRC does not penalise corrections.

Q: Does RentVault submit directly to HMRC?

RentVault generates your quarterly MTD export in the correct format for HMRC submission and provides a one-click accountant pack. Direct API submission to HMRC is on the RentVault roadmap. In the interim, your accountant can submit using the export, or you can use bridging software to submit directly.

Your Quarter 1 MTD export is ready in one click

RentVault tracks your income and expenses throughout the year, applies Section 24 correctly, excludes mortgage capital automatically, and generates your quarterly MTD export and accountant pack the moment you need it. Don't spend the last week of July scrambling for receipts.

• HMRC-compliant MTD quarterly export — one click
• SA105 figures with Section 24 correctly applied
• Mortgage capital excluded automatically
• One-click accountant pack — everything they need in one email
• Quarterly deadline reminders so nothing slips
• Live bank feed — transactions auto-categorised daily

Sources: HMRC Making Tax Digital for Income Tax Self Assessment guidance (GOV.UK) · HMRC MTD ITSA quarterly submission requirements · Finance Act 2021 · Finance (No.2) Act 2017 (Section 24) · ICAEW MTD guidance · CIOT.

This article is for general information purposes only and does not constitute tax advice. Your tax position depends on your individual circumstances. Consult a qualified accountant or tax adviser for advice specific to your situation.