HMRC issues Making Tax Digital deadline warning to 864,000

Those earning more than £50,000 from self-employment or property must submit their first quarterly update by August 7, 2026.

The update covers income and expenses for the first three months of the tax year and must be submitted through HMRC-recognised software.

This is not a tax return

HMRC has stressed that the quarterly update is not a Self Assessment tax return.

Instead, it is a short digital summary of income and expenses that takes just a few minutes to complete using compatible software.

People who have not yet signed up can still register before the deadline, while those who use an accountant can ask their agent to enrol them.

Some software also includes HMRC Assist, a digital tool that flags potential errors before submission and gives users an estimate of how much tax they are likely to owe, helping them budget ahead.

HMRC: ‘This is a landmark moment’

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.”

Among those who have already completed their first submission is Natasha Patterson, a 33-year-old potter from Whitehead, County Antrim, who runs Natasha Swan Ceramics.

She admitted she had expected the new process to be complicated and submitted her update early in case she ran into problems.

Instead, she said the process took around 10 minutes.

“I was expecting there to be some hurdles and I wanted to give myself time to work through any issues but was pleasantly surprised to find the process very smooth and straightforward,” she said.

“I went back to check I did it right about three times, but it really was very straightforward.

“Everything made sense and was logical – it wasn’t overwhelming, even though it was all new to me.

“If they can all go this seamlessly, we will be set up for smooth sailing at the end of this tax year.”

Natasha said one of the biggest benefits was being able to see an estimate of her tax bill immediately after submitting.

“It’s great to have a forecast of what I owe already, without mounds of paperwork. I feel more prepared knowing what’s expected of me in the coming months.”

She encouraged other sole traders not to worry about the new process, adding: “If you can complete your Self Assessment tax return, this is much easier. As far as tax submissions go, it was probably as pleasant as they come.”

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Making Tax Digital for Income Tax became mandatory from April 2026 for sole traders and landlords with qualifying income above £50,000.

The scheme will be extended to those earning more than £30,000 from April 2027, before expanding again to people earning more than £20,000 from April 2028.

HMRC has also reminded taxpayers that the new quarterly updates do not replace the annual Self Assessment tax return. Anyone affected must still submit their tax return and pay any tax due by January 31, 2027.

Although HMRC has confirmed no penalty points will be issued for late quarterly updates during the first year of the scheme, the normal penalties for late tax returns and late payments still apply.

From the second year onwards, a points-based penalty system will be introduced for missed quarterly deadlines.

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