HMRC have issued a press release confirming that 436,000 taxpayers have filed their first quarterly tax update under Making Tax Digital (MTD) for Income Tax, reminding those who have not yet submitted their returns to do so now.
HMRC have confirmed that more than 436,000 sole traders and landlords have successfully submitted their first Making Tax Digital (MTD) for Income Tax quarterly update for 2026-27.
- This follows the first MTD for Income Tax filing deadline on 7 August 2026.
Sole traders and landlords earning more than £50,000 have been required to keep digital records and send quarterly updates since April 2026, with this first submission covering the first three months of the 2026-27 tax year.
HMRC have reminded taxpayers who have not yet submitted their quarterly update to do so now using HMRC-recognised software.
- It has been confirmed that there will be no penalty points for late quarterly updates in 2026-27, but penalties will still apply for late tax returns and late payments.
Currently, over 570,000 taxpayers have signed themselves up for MTD for Income Tax. Based on 2023-24 figures, HMRC estimated in August 2025 that some 864,000 taxpayers would need to sign up from April 2026.
From September, HMRC will be signing up taxpayers who are required to use MTD for Income Tax for 2026-27, but who have not yet registered for the service themselves.
- This will be actioned in stages over the coming months.
- Taxpayers can avoid being signed up by HMRC by signing themselves up now, ensuring their MTD details are correct at the outset.
- HMRC will publish new guidance in late August to explain what taxpayers need to do if they receive a letter from HMRC about being signed up.
MTD for Income Tax should not be ignored, with HMRC reminding taxpayers that it is a legal requirement for sole traders and landlords earning more than £50,000 from self-employment and property to comply.
Quarterly updates do not replace the Self Assessment tax return. Those within scope must submit their quarterly updates in order to file their tax returns by 31 January.
HMRC reminds taxpayers that from April 2027, those earning more than £30,000 from self-employment and property will also be required to comply with MTD.
A Points-based penalty system will be introduced from 6 April 2027. Taxpayers will receive one point for each missed quarterly deadline and a £200 fixed penalty once four points have accumulated.
There are various MTD exemptions available, including those who are digitally excluded.
Useful guides on this topic
Making Tax Digital for Income Tax: Information required by HMRC
What information should you submit under Making Tax Digital for Income Tax? What are the requirements for relevant persons under the VAT threshold? What are the categories of information required?
MTD: Toolkit for accountants
What is the current timetable for Making Tax Digital (MTD)? When will MTD for Income Tax become mandatory? How will it work? Which clients will be excluded? What planning needs to be undertaken?
Compare software for Making Tax Digital for Income Tax
What software is available for MTD for Income Tax? What's the most suitable software I can use? Which software does HMRC list as working for MTD for Income Tax? What to consider before choosing software?
External link
HMRC: 436,000 sole traders and landlords make their tax digital - GOV.UK