More than 436,000 sole traders and landlords send first MTD for Income Tax quarterly update

More than 436,000 sole traders and landlords have sent their first Making Tax Digital (MTD) for Income Tax quarterly update, HM Revenue & Customs said on 12 August 2026. Over 570,000 customers have signed up to the service¹.

MTD for Income Tax became mandatory from April 2026 for sole traders and landlords with qualifying income over £50,000¹. The first quarterly update period ran from 6 April 2026 to 5 July 2026 for most customers, while some use calendar update periods, the first of which ran from 1 April to 30 June 2026. The deadline for all customers was 7 August 2026¹.

Updates must be sent through HMRC-recognised software. HMRC says quarterly updates are not tax returns but short summaries, and that they do not replace Self Assessment: those in scope must send quarterly updates to be able to submit a tax return. The Self Assessment deadline remains 31 January¹.

No penalty points will be issued for late quarterly updates during the 2026 to 2027 tax year, though penalties still apply for late tax returns and late payments¹. From 6 April 2027, points-based penalties will apply where taxpayers miss a quarterly deadline. Taxpayers receive one penalty point for each missed quarterly deadline, and once four points are accumulated a £200 fixed penalty is charged. Points expire after a period of compliance¹.

Craig Ogilvie, HMRC's Director of Making Tax Digital, said:

Why it matters for households

Sole traders and landlords with qualifying income over £50,000 are in scope now, and those who have not yet sent a first update can still do so without penalty points for the 2026 to 2027 tax year¹. From April 2027, the threshold falls to qualifying income of more than £30,000, bringing more people into Making Tax Digital for Income Tax¹.

Being in scope changes how records are kept and how income is reported during the year, even though the Self Assessment return and its 31 January deadline remain¹. Exemptions exist, including for those who are digitally excluded, and HMRC has published guidance on exemptions from Making Tax Digital¹. The penalties framework that starts in April 2027 is set out in HMRC's penalty points and late payment penalties guidance¹. How self-employed income is taxed is unchanged by the quarterly reporting requirement¹.

What happens next

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 months¹. New guidance is to be published in late August explaining what customers need to do if they receive a letter from HMRC about being signed up¹. From 6 April 2027, points-based penalties apply to missed quarterly deadlines, and from April 2027 the requirement extends to those with qualifying income over £30,000¹.