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More than 864,000 sole traders and landlords earning over £50,000 from self-employment and property have until this Friday (7 August) to send their first Making Tax Digital (MTD) for income tax quarterly update.
Under the changes, they must submit details of income and expenses using compatible software. The first update covers 6 April to 5 July 2026.
Before sending the update, users must register on GOV.UK.
In a LinkedIn post in mid-July, MTD director Craig Ogilvie said around 435,000 of the 864,000 people required to register had done so, meaning that more than half still needed to sign up.
No penalty points are being imposed for late quarterly updates during the first year of MTD for income tax, although penalties do still apply for late Self Assessment returns and late payments.
From the second year of MTD for income tax, points-based penalties will apply. One penalty point will be issued for each missed quarterly deadline. Once four points are reached, a £200 fixed penalty is charged. Points expire after a period of compliance.
MTD for income tax will be extended to sole traders and landlords earning more than £30,000 from April 2027, and to those earning more than £20,000 from April 2028.
The tax return deadline remains 31 January.
This year’s other MTD quarterly deadlines are as follows:
- 6 July to 5 October period: Deadline is 7 November
- 6 October to 5 January period: Deadline is 7 February
- 6 January to 5 April period: Deadline is 7 May
