- Sole traders and landlords earning more than £50,000 from their self-employment and property must send their first Making Tax Digital for Income Tax quarterly update by 7 August 2026.
- The quarterly update covers income and expenses for the first three months of the tax year.
- The update takes minutes through recognised software and is not a tax return.
More than 864,000 sole traders and landlords signed up to Making Tax Digital (MTD) for Income Tax have just two weeks left before the deadline to submit their first quarterly update.
The update covers income and expenses for the first three months of the tax year. The deadline for submitting it to HM Revenue and Customs (HMRC) is 7 August 2026.
The quarterly update is not a tax return. It is a short summary sent directly to HMRC through recognised software and takes minutes to complete.
Customers who have not yet signed up can still do so now by visiting GOV.UK, where they can also find software and access free guidance and webinars. If customers use an agent, they can sign them up instead.
Some software includes digital support tool HMRC Assist, which gives tailored feedback to help customers spot potential errors before submission. Customers remain responsible for ensuring their return is accurate.
After each update, users can see an estimate of their tax bill, helping them to plan ahead.
Craig Ogilvie, HMRC’s Director of Making Tax Digital, said
This is a landmark moment for the tax system. Hundreds of thousands of sole traders and landlords are now keeping digital records and will be sending their first quarterly update in the coming weeks.
For those already using software, this should be straightforward and take minutes. If you haven’t signed up yet, there is still time – visit GOV.UK and search ‘Making Tax Digital for Income Tax’ to get started.
Making Tax Digital is now a legal requirement and customers in scope should check now that they are signed up, that their software is compatible and submit their update before the deadline.
It will extend to those earning more than £30,000 from April 2027, and to those earning more than £20,000 from April 2028.
The tax return deadline remains 31 January. Quarterly updates do not replace the tax return – customers will still need to submit their return and pay any taxed owed by the 31 January 2027.
Case Study
“My first Making Tax Digital update was so easy – if they can all go this seamlessly, we’ll be set up for smooth sailing”
Natasha Patterson, 33, is a full-time potter based in Whitehead, County Antrim, and is already ahead of the game – she has submitted her first Making Tax Digital for Income Tax quarterly update weeks before the 7 August deadline.
Natasha Patterson
She has been working as a potter since 2020 and opened her studio shop – Natasha Swan Ceramics – in 2023, where she specialises in functional wheel-thrown tableware including mugs, salt pigs and reed diffusers.
Like many small business owners, Natasha was not looking forward to a new tax obligation. She decided to submit early – just in case there were any issues along the way.
Natasha said
I was expecting there to be some hurdles and I wanted to give myself time to work through any issues but was pleasantly surprised to find the process very smooth and straightforward.
In the end, the submission itself took about 10 minutes. Natasha had been adding receipts and updating her records throughout the quarter, so everything was ready to go when it came to submitting.
I went back to check I did it right about three times, but it really was very straightforward.
Everything made sense and was logical – it wasn’t overwhelming, even though it was all new to me.
If they can all go this seamlessly, we will be set up for smooth sailing at the end of this tax year.
One of the things she has valued most is being able to see a forecast of her tax bill straight away.
It’s great to have a forecast of what I owe already, without mounds of paperwork. I feel more prepared knowing what’s expected of me in the coming months and also more confident going into the second quarter now knowing how straightforward the first submission was.
Her message to other sole traders approaching their first update is straightforward. She said
If you can complete your Self Assessment tax return, this is much easier. As far as tax submissions go, it was probably as pleasant as they come.
Further Information
Making Tax Digital for Income Tax became mandatory from April 2026 for sole traders and landlords with qualifying income over £50,000.
The first quarterly update period runs from 6 April 2026 to 5 July 2026, for most customers. Some customers can instead use calendar update periods, the first of which runs from 1 April to 30 June. The update deadline for all customers is 7 August 2026.
Quarterly updates are submitted through HMRC-recognised compatible software. A list of compatible software is available on GOV.UK.
The tax return deadline remains 31 January. MTD quarterly updates do not replace the tax return.
There are various exemptions from MTD available, including for those who are digitally excluded, visit GOV.UK for details.
No penalty points will be issued for late quarterly updates during the first year of MTD for Income Tax. Penalties do still apply for late Self Assessment returns and late payments.
From the second year of MTD for Income Tax onwards, points-based penalties will apply where taxpayers miss a quarterly deadline. Taxpayers receive one penalty point for each missed quarterly deadline. Once 4 points are accumulated, a £200 fixed penalty is charged. Points expire after a period of compliance. Further details are available on GOV.UK
Natasha Patterson used Starling Bank’s MTD-compatible software to submit her quarterly update. This case study was sourced with the assistance of Starling Bank. A full list of compatible software is available on GOV.UK.