13/08/2026
436,000 Sole Traders And Landlords Submit First Digital Income Tax Updates
More than 436,000 sole traders and landlords have filed their first Making Tax Digital (MTD) for Income Tax quarterly update for 2026/27, HMRC has confirmed. Over 570,000 customers have now signed up. There are no penalty points for late quarterly updates during 2026/27, and HMRC will begin signing up eligible customers who have not enrolled from September.
Since April 2026, sole traders and landlords with qualifying income above £50,000 have been required to keep digital records and send quarterly updates to HMRC. The first update covered the opening three months of the tax year.
Those who have not yet submitted can do so now through HMRC-recognised software. For this tax year, late quarterly updates will not attract points-based penalties.
From September 2026, HMRC will start enrolling customers who should be using MTD for the 2026 to 2027 tax year but have not yet signed up, with onboarding taking place in stages over the following months.
Customers can avoid being enrolled by HMRC by signing up themselves now via GOV.UK. Self-registration lets users check their details from the outset and choose software at their own pace. Guidance and support are available on GOV.UK to help with sign-up and use of the service.
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.
"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."
HMRC will publish new guidance in late August explaining what customers should do if they receive a letter about being signed up.
MTD for Income Tax is a legal requirement for sole traders and landlords earning more than £50,000 from self-employment and property. Quarterly updates are not tax returns; they are short summaries sent through compatible software and typically take minutes to complete.
The Self Assessment deadline remains 31 January. Quarterly updates do not replace Self Assessment, but those in scope must submit their updates in order to file a tax return.
From April 2027, MTD for Income Tax will extend to those with qualifying income over £30,000. For most customers, the first quarterly update period ran from 6 April to 5 July 2026 (some used calendar quarters running 1 April to 30 June), with a submission deadline of 7 August 2026.
Updates must be sent via HMRC-recognised software, and a list of compatible products is available on GOV.UK. Exemptions exist, including for those who are digitally excluded; details are on GOV.UK.
No penalty points will be issued for late quarterly updates during 2026/27, although penalties still apply for late tax returns and late payments. From 6 April 2027, a points-based system will apply to missed quarterly deadlines: one point per missed deadline, with a £200 fixed penalty once four points are reached. Points expire after a period of compliance; further information is on GOV.UK.
Since April 2026, sole traders and landlords with qualifying income above £50,000 have been required to keep digital records and send quarterly updates to HMRC. The first update covered the opening three months of the tax year.
Those who have not yet submitted can do so now through HMRC-recognised software. For this tax year, late quarterly updates will not attract points-based penalties.
From September 2026, HMRC will start enrolling customers who should be using MTD for the 2026 to 2027 tax year but have not yet signed up, with onboarding taking place in stages over the following months.
Customers can avoid being enrolled by HMRC by signing up themselves now via GOV.UK. Self-registration lets users check their details from the outset and choose software at their own pace. Guidance and support are available on GOV.UK to help with sign-up and use of the service.
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.
HMRC will publish new guidance in late August explaining what customers should do if they receive a letter about being signed up.
MTD for Income Tax is a legal requirement for sole traders and landlords earning more than £50,000 from self-employment and property. Quarterly updates are not tax returns; they are short summaries sent through compatible software and typically take minutes to complete.
The Self Assessment deadline remains 31 January. Quarterly updates do not replace Self Assessment, but those in scope must submit their updates in order to file a tax return.
From April 2027, MTD for Income Tax will extend to those with qualifying income over £30,000. For most customers, the first quarterly update period ran from 6 April to 5 July 2026 (some used calendar quarters running 1 April to 30 June), with a submission deadline of 7 August 2026.
Updates must be sent via HMRC-recognised software, and a list of compatible products is available on GOV.UK. Exemptions exist, including for those who are digitally excluded; details are on GOV.UK.
No penalty points will be issued for late quarterly updates during 2026/27, although penalties still apply for late tax returns and late payments. From 6 April 2027, a points-based system will apply to missed quarterly deadlines: one point per missed deadline, with a £200 fixed penalty once four points are reached. Points expire after a period of compliance; further information is on GOV.UK.
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