HMRC Sets August 7 Deadline for Making Tax Digital Updates

The HM Revenue & Customs (HMRC) has set a deadline of August 7, 2026, for approximately 864,000 sole traders and landlords to submit their first quarterly update under the Making Tax Digital (MTD) for Income Tax scheme. The requirement applies to those with a combined turnover exceeding £50,000 in the 2024/25 tax year. Taxpayers must provide a digital summary of income and expenses for the first three months of the tax year using approved software.

This mandate is the first stage of a three-phase rollout. The threshold for mandatory participation will drop to £30,000 in April 2027 and further to £20,000 in April 2028. While these quarterly submissions are now a legal requirement, HMRC is providing a transitional grace period for the 2026 to 2027 tax year, meaning no penalty points will be issued for missed quarterly deadlines. However, fines remain in effect for failing to keep digital records or filing annual tax returns late.

HMRC clarified that quarterly updates do not replace the annual Self Assessment tax return, which remains due by January 31, 2027. To assist the transition, the agency has provided instructional videos and webinars. Craig Ogilvie, HMRC’s Director of Making Tax Digital, described the initiative as a landmark moment for the tax system.