The First MTD Quarterly Submission Was Due 7 August 2026 — What to Do Now

By RentVault Team · Published 2026-06-04 · Updated 2026-08-26 · 7 min read

The first MTD quarterly update, covering 6 April to 5 July 2026, was due by 7 August 2026. Here is what affected landlords need to do now.

The deadline was 7 August 2026. If you entered Making Tax Digital for Income Tax in April 2026, your first quarterly update covered 6 April to 5 July 2026 and was due by 7 August 2026. HMRC will not apply penalty points for missed quarterly updates during 2026/27, but an outstanding update still needs to be submitted.

HMRC facts last verified: 25 August 2026 — GOV.UK: Penalties for Making Tax Digital for Income Tax.

Who was required to submit by 7 August 2026?

The 7 August 2026 deadline applied 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 means your quarterly figures will not accurately reflect your records. Correct the records as soon as possible and include the correction in your next quarterly update.

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 and the update remains outstanding, send the quarterly export pack promptly. 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 or any other quarterly late-submission penalties for the 2026/27 tax year. If an update is overdue, you must still submit it before you submit your tax return. The points-based penalty system applies only to tax years after 2026/27:

• A late quarterly submission earns one penalty point
• Threshold for quarterly filers: 4 penalty points
• A £200 financial penalty is triggered when the threshold is reached
• Points expire after 24 months of full compliance

There is no quarterly late-submission penalty for missing a 2026/27 deadline, but the update does not disappear: submit it as soon as possible, because every overdue quarterly update must be filed before you submit your tax return. Submitting on time now also helps establish the routine you will need when the points-based penalty system applies in later tax years.

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 reduces surprises when you prepare your annual tax return.

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
• Annual tax return (full year 2026/27) — submit through compatible software or an accountant by 31 January 2028

Add the quarterly and annual deadlines 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. You finalise your Income Tax position and submit your annual tax return through compatible software or an accountant, 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. Correct your records as soon as possible and include the correction in the next quarterly update. After the fourth update, correct and resend it or adjust the relevant category total while updating your records, before finalising your Income Tax position. 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. If the update remains outstanding, send them your income and expense summary for 6 April to 5 July promptly. In RentVault, the one-click accountant pack provides the records in a single export.

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?

If you realise you made an error — missed an income entry or miscategorised an expense — correct your digital records as soon as you notice and include the correction in the next quarterly update. After the fourth update, correct and resend it or adjust the relevant category total while updating your records, before finalising your Income Tax position.

Q: Does RentVault submit directly to HMRC?

RentVault generates your quarterly MTD export and provides an accountant pack. Use the export with compatible software or your accountant to send the update to HMRC.

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 when you need it.

• Quarterly export for compatible software or an accountant — 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 guidance · HMRC penalties guidance · 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.