More than 436,000 sole traders and landlords have submitted their first Making Tax Digital for Income Tax quarterly update, HM Revenue and Customs has confirmed, as the authority prepares to begin signing up remaining eligible customers from September.
The UK HM Revenue & Customs (HMRC) has announced that more than 436,000 sole traders and landlords have successfully sent their first Making Tax Digital (MTD) for Income Tax quarterly update for the 2026 to 2027 tax year, with over 570,000 customers now signed up to the service, according to a press release published on 12 August 2026.
Requirement and deadlines
Sole traders and landlords earning more than GBP 50,000 have been required to keep digital records and send quarterly updates to HMRC since April 2026, with the first update covering the first three months of the tax year. The first quarterly update period ran from 6 April 2026 to 5 July 2026 for most customers, while some customers using calendar update periods had their first period run from 1 April to 30 June 2026. The quarterly update deadline for all customers was 7 August 2026.
HMRC said customers who have not yet sent their update can do so now in a few simple steps through their recognised software. No penalty points will be issued for late quarterly updates during the 2026 to 2027 tax year, though penalties continue to apply for late tax returns and late payments.
HMRC to begin signing up remaining customers
From September 2026, HMRC will begin signing up customers who should be using MTD for the 2026 to 2027 tax year but have not yet done so, in stages over the coming months, the authority said. New guidance is due to be published in late August 2026 explaining what customers need to do if they receive a letter from HMRC about being signed up.
Craig Ogilvie, HMRC’s Director of Making Tax Digital, said: “It’s fantastic to see so many sole traders and landlords successfully sending their first quarterly updates. This marks an important milestone in the move to a more modern tax system, with many customers telling us that the process is straightforward and works well through their chosen software.”
He added: “If you haven’t yet signed up, now is the time to do so. Taking action now means you stay in control, can make sure your Making Tax Digital for Income Tax details are correct from the start, and have time to choose the software that works best for you, rather than waiting for HMRC to sign you up from September.”
Scope of the requirement
MTD for Income Tax became mandatory from April 2026 for sole traders and landlords with qualifying income over GBP 50,000. From April 2027, those with a qualifying income of more than GBP 30,000 will also be required to comply with MTD for Income Tax.
HMRC said quarterly updates are not tax returns but short summaries sent through compatible software, taking minutes to complete. The Self Assessment tax return deadline remains 31 January. Quarterly updates do not replace Self Assessment, but customers in scope must send their quarterly updates before they are able to submit a tax return.
Various exemptions from Making Tax Digital for Income Tax are available, including for those who are digitally excluded, HMRC said.
Penalty regime from 2027
From 6 April 2027, points-based penalties will apply where taxpayers miss a quarterly deadline. Taxpayers will receive one penalty point for each missed quarterly deadline, and once four points have accumulated, a fixed penalty of GBP 200 will be charged. Points will expire after a period of compliance, HMRC said.
Quarterly updates must be sent through HMRC-recognised software, and a list of compatible software is available on GOV.HMRC added that a list of compatible software is available on GOV.UK, alongside guidance on exemptions and the points-based penalty regime that will take effect from April 2027.
