Global Daily Tax News, UK Making Tax Digital For Income Tax Reporting Begins, (Aug 13, 2026)

HM Revenue and Customs has welcomed the successful implementation of Making Tax Digital for Income Tax, with more than 436,000 sole traders and landlords having successfully submitted their first quarterly update.

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

Sole traders and landlords earning more than GBP50,000 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 three months of the tax year.

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

From September 2026, HMRC will begin signing up taxpayers who should be using MTD for the 2026 to 2027 tax year but have not yet done so. The agency said this will happen in stages over the coming months.

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."

The Self Assessment tax return deadline remains January 31. 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, HMRC said.

From April 6, 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 GBP200 fixed penalty will be charged. Points expire after a period of compliance.