Deadline approaches for first Making Tax Digital quarterly update

More than 864,000 sole traders and landlords within scope of Making Tax Digital (MTD) for Income Tax have until 7th August to submit their first quarterly update.

The quarterly update covers income and expenses for the first three months of the tax year for those earning more than £50,000 from self-employment and property, and is sent directly to HMRC through recognised software and takes minutes to complete.

The deadline for submitting it to HM Revenue and Customs (HMRC) is 7 August 2026. Customers who have not yet signed up can still do so now by visiting the government website, where they can also find software and access free guidance and webinars. If customers use an agent, they can sign them up instead.

Making Tax Digital is now a legal requirement and customers in scope should check now that they are signed up, that their software is compatible and submit their update before the deadline. It will extend to those earning more than £30,000 from April 2027, and to those earning more than £20,000 from April 2028. Research by business advisory firm, Azets, published a month before the deadline found that two-thirds of those required to register with Making Tax Digital for Income Tax were still yet to do so.

The tax return deadline remains 31 January. Quarterly updates do not replace the tax return – customers will still need to submit their return and pay any taxed owed by the deadline.

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

“This is a landmark moment for the tax system. Hundreds of thousands of sole traders and landlords are now keeping digital records and will be sending their first quarterly update in the coming weeks.

“For those already using software, this should be straightforward and take minutes. If you haven’t signed up yet, there is still time – visit GOV.UK and search ‘Making Tax Digital for Income Tax’ to get started.”