UK Tax Update: MTD Deadline Today

Five UK tax developments accountants and business owners should know

The first mandatory Making Tax Digital for Income Tax quarterly filing deadline is today, 7 August 2026. Tax advisers also need to check whether they fall within the first HMRC registration window, while three important HMRC consultations close over the next two weeks.

These developments are particularly relevant to sole traders, landlords, tax advisers, employers, VAT-registered businesses and accountancy practices.

1. First MTD for Income Tax quarterly update due today

Today, 7 August 2026, is the deadline for the first quarterly update under Making Tax Digital for Income Tax.

Making Tax Digital became mandatory from April 2026 for qualifying sole traders and landlords with gross income from self-employment and property of more than £50,000. HMRC says more than 864,000 people are within this first cohort.

For most affected taxpayers, the first update covers 6 April to 5 July 2026. Taxpayers using calendar quarters report for 1 April to 30 June, but the same 7 August deadline applies.

The update is a digital summary of income and expenses submitted through HMRC-recognised compatible software. It is not a tax return, and it does not replace the annual Self Assessment return.

Final checks before the deadline

Affected taxpayers and their advisers should confirm that:

every mandated taxpayer has been identified;
all relevant self-employment and property sources are included;
digital records cover the whole reporting period;
the software is still authorised to communicate with HMRC;
the update has actually been submitted, rather than merely prepared;
the submission has not been rejected; and
successful filing confirmation has been retained.

HMRC has confirmed that no penalty points will be issued for late quarterly updates during the first year of MTD for Income Tax. However, anyone who has missed the deadline should still submit as soon as possible. Normal penalties continue to apply to late Self Assessment returns and late tax payments.

2. Tax-adviser registration deadline: 18 August 2026

The first registration window under HMRC’s new mandatory tax-adviser registration regime closes on 18 August 2026.

This window applies to new tax advisers and advisers who interact with HMRC without an Agent Services Account, Self Assessment account or Corporation Tax account. HMRC says anyone paid to interact with it on another person’s tax affairs will generally be treated as a tax adviser unless an exemption applies.

Advisers who already have an Agent Services Account generally do not need to register again at this stage. HMRC says it will contact them through their account if more information is required.

HMRC’s phased timetable

18 May to 18 August 2026: new advisers and advisers without an Agent Services Account, Self Assessment account or Corporation Tax account.
18 August to 18 November 2026: advisers with a Self Assessment or Corporation Tax account, but no Agent Services Account.
18 November 2026 to 18 February 2027: advisers who provide payroll services only.
31 December 2026 to 31 March 2027: existing Agent Services Account holders and certain financial-services organisations.

Practices should identify the legal entity that provides the tax-adviser service, record which HMRC accounts it holds and confirm the correct registration window. This can be especially important where a group contains separate bookkeeping, payroll or tax companies, or where work is subcontracted.

3. Proposed criminal offence for reckless direct-tax statements

HMRC is consulting on a proposed criminal offence for making reckless untrue statements or declarations in relation to direct tax. The consultation closes on 16 August 2026.

The proposal is relevant to tax professionals, advisers, trustees, business owners and people involved in corporate restructurings. A key issue will be how criminal recklessness is distinguished from an innocent mistake or ordinary carelessness.

This is a consultation proposal and is not currently a new criminal offence. HMRC says it will consider responses before publishing draft legislation.

Why accountants should pay attention

The direction of travel reinforces the value of strong engagement files. Practices should retain clear evidence of information supplied by clients, enquiries made, assumptions used, professional judgement applied, advice given and issues brought to the client’s attention.

4. Could Direct Debit become compulsory for VAT and PAYE?

A separate HMRC consultation considers requiring businesses to pay VAT return liabilities and PAYE liabilities by Direct Debit. It also closes on 16 August 2026.

HMRC says the proposal is intended to reduce late payment, limit the flow of tax debt and reduce errors such as the use of an incorrect payment reference. It follows an earlier attempt to promote Direct Debit as the primary payment method, which HMRC says did not materially increase take-up.

Compulsory Direct Debit is not a current requirement. The consultation seeks views on the scope of any future change, safeguards and possible exceptions.

Businesses and advisers may wish to consider how mandatory collection could operate where there are insufficient funds, amended returns, disputed liabilities, multiple VAT or PAYE schemes, changing bank accounts, non-UK bank accounts or central treasury arrangements.

5. HMRC’s plans for more third-party data

HMRC is also consulting on draft legislation intended to improve the collection and use of third-party tax data. Responses are due by 20 August 2026, and the measure is scheduled to take effect from 6 April 2028.

In-scope data holders would be required to provide information on an ongoing basis, report it within set timeframes, collect and verify specified tax references and make reasonable efforts to obtain missing required information.

This continues the move towards more pre-populated and data-driven tax administration. Accountants should expect to spend more time reconciling client records with information supplied directly to HMRC by banks, platforms and other third parties, checking whether it is complete, correctly attributed and taxed in the right period.

Companies House identity-verification watch

Identity verification remains a key Companies House compliance priority. After verification, an individual receives a personal code that must be used to connect their verified identity with each relevant company role.

Existing directors generally provide their personal code with the company’s next confirmation statement. People with significant control have role-specific 14-day periods in which to provide their code.

A useful internal control is a company-by-company register covering director verification, PSC verification, personal-code submission and the next confirmation-statement date.

Tribunal watch: HMRC v Christian Peter Candy

The recent Upper Tribunal decision in HMRC v Christian Peter Candy [2026] UKUT 00282 (TCC) is of specialist interest in relation to Stamp Duty Land Tax overpayment relief.

The case concerned a contract that had been substantially performed but was not ultimately carried into effect, where the taxpayer was already out of time to amend the land transaction return. HMRC’s appeal was dismissed.

The decision may be relevant in unusual failed or restructured property transactions, but it should not be treated as creating an automatic SDLT repayment right. The statutory conditions and facts remain crucial.

Key dates at a glance

7 August 2026: first MTD for Income Tax quarterly update deadline.
16 August 2026: consultations close on reckless direct-tax statements and VAT/PAYE payments by Direct Debit.
18 August 2026: first mandatory tax-adviser registration window closes.
20 August 2026: consultation closes on better use of third-party tax data.

How SKN Chartered Accountants can help

If you are unsure whether your MTD quarterly update has been successfully filed, or you need support with tax planning, digital records or business compliance, speak to SKN Chartered Accountants.

Official sources

Disclaimer

This article provides general information only and does not constitute tax, legal, financial or investment advice. Consultation proposals are not enacted law, and individual circumstances should be reviewed professionally before action is taken.

SKN UK Tax & Business Update – 7 August 2026