Deadline approaches for first HMRC Making Tax Digital quarterly update as 864,000 taxi drivers and self-employed face August submission
- Perry Richardson
- 3 hours ago
- 2 min read
More than 864,000 sole traders and landlords have less than two weeks to submit their first quarterly update under the new Making Tax Digital (MTD) for Income Tax rules, with HM Revenue and Customs warning that the deadline falls on 7 August.
The first update applies to people turning over more than £50,000 from self-employment or property income who are now legally required to comply with the new digital reporting system. The submission covers income and expenses for the first three months of the 2026-27 tax year.
HMRC said the quarterly update is not a tax return. Instead, it is a summary of income and expenses submitted through recognised software and is designed to take only a few minutes to complete.
Those who have not yet enrolled in the scheme can still sign up through GOV.UK or ask their accountant or tax agent to do so on their behalf. HMRC has also published free guidance and webinars to help customers understand the new reporting requirements.
Some recognised software packages include HMRC Assist, a digital support tool that provides tailored feedback to help identify potential errors before information is submitted. However, HMRC stressed that taxpayers remain responsible for ensuring the accuracy of their submissions.
Following each quarterly update, users can view an estimated tax position, allowing them to better understand their expected liability before the end of the tax year and potentially improve budgeting and cash flow planning.
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.”
The introduction of Making Tax Digital for Income Tax marks a significant change in how many self-employed people manage their tax affairs. The programme is intended to modernise the tax system by requiring digital record keeping and more frequent reporting throughout the year.
The scheme is set to expand further over the next two years. From April 2027 it will apply to those earning more than £30,000 from self-employment and property, before extending to those earning more than £20,000 from April 2028.
Despite the introduction of quarterly updates, the annual tax return has not been abolished. Taxpayers must still submit their end-of-year tax return and pay any tax due by 31 January 2027.
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