Right, let's talk about Making Tax Digital — because if you're a sole trader or CIS subcontractor earning over £50,000, your first quarterly deadline is 7 August 2026. That's weeks away, not months. And if you haven't sorted your records yet, now is the time to pay attention.
MTD for Income Tax officially launched in April 2026. Since then, there's been plenty of noise about it, some helpful, some not. So here's a straightforward explanation of what's actually happening, what you need to do, and what it means for EEBS clients specifically.
So what is the 7 August deadline, exactly?
Under MTD, you'll submit a summary of your income and expenses to HMRC four times a year through compatible software. The first quarterly deadline, 7 August, covers the period 6 April to 5 July 2026.
Worth being clear on this: it's not a payment deadline. You're not handing over any tax on 7 August. You're simply sending HMRC a summary of what you earned and spent in those three months. If your records are tidy, it really doesn't take long.
What do you need to have in place?
From April 2026, digital record keeping isn't optional for those in scope. Every income and expense item needs to be recorded digitally, date, amount, category, using MTD-compatible software. Paper receipts in a shoebox won't cut it anymore, at least not on their own.
Will I get fined if I miss it?
Here's a bit of good news. HMRC has confirmed a soft-landing period for the 2026/27 tax year, which means no penalty points for late submissions this year. However, and this is important, you still have to submit it. HMRC requires all four quarterly updates to be filed before you can make your Final Declaration at the end of the year. The soft landing removes the penalty. It doesn't remove the obligation.
From 2027/28, the soft landing disappears. Miss a deadline then and you'll accumulate penalty points. Four of those triggers a £200 fine, with further fines for each subsequent miss.
Does this affect CIS subcontractors?
Yes, if you're a self-employed sole trader subcontractor earning over £50,000, MTD applies to you. Being paid through CIS doesn't exempt you. We know this question comes up a lot, so to be absolutely clear: if you hit the threshold, you're in scope.
What's EEBS doing about it?
We've built something to make this genuinely easy. EEBS Core is a free app for all EEBS clients and subcontractors, and it takes the hassle out of MTD completely.
The bit people love most? Snap a photo of a receipt and the app reads it for you. Amount, date, supplier, all pulled out automatically using AI. No typing, no filing, no glovebox full of crumpled paper. It's logged against the right quarter and ready to go.
Here's what EEBS Core does:
- Keeps digital records of your income and expenses as you go, exactly the way HMRC requires
- Lets subcontractors see their payslips and pay history in one place
- Lets contractors track timesheets and payments to subbies
- Sends quarterly summaries so you're never scrambling at deadline time
- Keeps everything tidy and ready for your accountant
It's the same trusted EEBS support, now in your pocket. And it's completely free for everyone we work with.
Already an EEBS client? Talk to your team about getting set up. Not with us yet? Give us a ring and let's have a chat about how we can help.
📞 01245 493 832 | info@eebs.co.uk | eebs.co.uk/eebs-core
