436,000 file first quarterly update through Making Tax Digital for Income Tax

More than 436,000 sole traders and landlords have successfully submitted their first quarterly update after Making Tax Digital for Income Tax became mandatory for those with annual incomes over £50,000.

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

Over 570,000 people have now signed up to the service, and 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.

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. From April 2027, those earning a qualifying income more than £30,000 will be required to do MTD for Income Tax.

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.