436,000 sole traders and landlords make their tax digital

12 Aug 2026 11:44 AM

More than 436,000 sole traders and landlords have successfully submitted their first Making Tax Digital for Income Tax quarterly update.

More than 436,000 sole traders and landlords have successfully sent their first Making Tax Digital (MTD) for Income Tax quarterly update. Over 570,000 customers have now signed up to the service.

Sole traders and landlords earning more than £50,000 have been required to keep digital records and send quarterly updates to HM Revenue and Customs (HMRC) since April 2026, with the first update covering the first 3 months of the tax year.

Customers who have not yet sent their update can do so now in a few simple steps through their recognised software. In 2026 to 2027, there are no penalty points for late quarterly updates.

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, helping them meet their requirements. This will happen in stages over the coming months.

Customers can avoid this by signing up now at GOV.UK. Those who sign up themselves can make sure their MTD details are correct from the start and prepare in their own time, rather than waiting to be contacted by HMRC.

HMRC guidance and support is available on GOV.UK to help customers to sign 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.

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.

New guidance will be published in late August to explain what customers need to do if they receive a letter from HMRC about being signed up.

Making Tax Digital 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 take minutes to complete.

The Self Assessment tax return deadline remains 31 January. Quarterly updates do not replace Self Assessment but those in scope will have to send their quarterly updates to be able to submit a tax return.

Further Information

MTD for Income Tax became mandatory from April 2026 for sole traders and landlords with qualifying income over £50,000. From April 2027, those earning a qualifying income more than £30,000 will be required to do MTDfor Income Tax.

The first quarterly update period ran from 6 April 2026 to 5 July 2026 for most customers. Some customers use calendar update periods instead, the first of which ran from 1 April to 30 June 2026. The quarterly update deadline for all customers was 7 August 2026.

Quarterly updates need to be sent through HMRC-recognised software. A list of compatible software is available on GOV.UK.

There are various exemptions from Making Tax Digital for Income Tax 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 2026 to 2027 tax year. Penalties still apply for late tax returns and late payments.

From 6 April 2027 onwards, points-based penalties will apply where taxpayers miss a quarterly deadline. Taxpayers receive one penalty point for each missed quarterly deadline. Once four points are accumulated, a £200 fixed penalty is charged. Points expire after a period of compliance. Further details are available on GOV.UK.