Overview
- The first quarterly-update deadline on 7 August 2026 has passed and HMRC reports that more than 436,000 sole traders and landlords have submitted their first Making Tax Digital (MTD) update.
- Over 570,000 customers have signed up to MTD for Income Tax but HMRC estimates about 864,000 people were in the first cohort so roughly 401,000 have not yet sent their first update.
- HMRC will not issue penalty points for late quarterly updates during the 2026–27 tax year though penalties still apply for late Self Assessment returns and late tax payments.
- From September HMRC will begin proactively signing up customers who have not enrolled and it will apply a points-based penalty regime from 6 April 2027 that gives one point per missed quarterly deadline and a £200 fixed penalty after four points.
- Taxpayers in scope must keep digital records and send short quarterly summaries through HMRC‑recognised software because qualifying income is measured as gross self‑employment and property income before expenses, so those with high costs can still be caught and should act now to avoid future fines.