Now that we are into the first quarter of the new tax year, MTD reporting obligations are live for those within Making Tax Digital for VAT and/or Income Tax. Quarter 1 deadlines are already approaching, so it is a good moment to make sure everything is in order.

What MTD Requires

Under Making Tax Digital, businesses and landlords must keep their records digitally using compatible software or spreadsheets that link digitally to submission software. Returns and quarterly updates must then be submitted to HMRC through MTD-compatible software — not through HMRC’s standard online forms.

Quarter 1 Deadlines

Two sets of deadlines are relevant for this first quarter:

MTD for VAT — VAT returns for VAT-registered businesses fall due in line with your normal VAT stagger.

MTD for Income Tax — quarterly updates are due shortly after the quarter end. For most people, the first deadline is 5 August 2026, covering the period 6 April to 5 July.

Three Things to Check Right Now

Your software — confirm that your accounting or property management software is MTD-compatible and fully up to date. If you are unsure, now is the time to check rather than discover a problem at filing.

Your records — digital records need to be maintained on an ongoing basis. Avoid copying data manually between systems, as this creates compliance risks and can cause errors.

Your timing — if we are authorised to submit on your behalf, please send us your Quarter 1 records and system reports as early as possible ahead of your filing deadline. This gives us time to review and submit without any last-minute pressure.

Not Sure Where You Stand?

If you are uncertain whether you fall within MTD for VAT or Income Tax, unclear about your specific Quarter 1 deadline, or need help verifying that your software is compliant, please get in touch with us as soon as possible. MTD is not a one-size-fits-all regime, and your obligations will depend on your individual circumstances.

Our team is experienced in supporting clients across all MTD requirements — from initial compliance checks through to ongoing submission support.

These articles are for guidance only and professional advice should be obtained before acting on any information contained in them. No responsibility can be accepted for loss occasioned howsoever to any person as a result of action taken or refrained from as a result of reading.