436,000 sole traders and landlords make their tax digital

• More than 436,000 sole traders and landlords have successfully sent their first Making Tax Digital for Income Tax quarterly update for 2026/2027.

• Customers who have not yet sent their first quarterly update can do so now, with no penalty for lateupdates this year.

• From September, HMRC will begin signing up customers that need to use Making Tax Digital for Income Tax for the 2026 to 2027 tax year but have yet to do so.

More than 436,000 sole traders and landlords have successfully sent their first Making Tax Digital (MTD) for Income Tax quarterly update. Over 570,000 customers have now signed up to the service.

Sole traders and landlords earning more than £50,000 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 3 months of the tax year.

Customers who have not yet sent their update can do so now in a few simple steps through their recognised software. In 2026/27, there are no penalty points for late quarterly updates.

From September 2026, HMRC will begin signing up customers who should be using MTD for the 2026 to 2027 tax year but have not yet done so, helping them meet their requirements. This will happen in stages over the coming months.

Customers can avoid this by signing up now at GOV.UK. Those who sign up themselves can make sure their MTD details are correct from the start and prepare in their own time, rather than waiting to be contacted by HMRC. HMRC guidance and support is available on GOV.UK to help customers to sign up.

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.”

New guidance will be published in late August to explain what customers need to do if they receive a letter from HMRC about being signed up. 

Making Tax Digital for Income Tax is a legal requirement for sole traders and landlords earning more than £50,000 from self-employment and property. Quarterly updates are not tax returns; they are short summaries sent through compatible software and take minutes to complete.

The Self Assessment tax return deadline remains 31 January. Quarterly updates do not replace Self Assessment