HMRC Warns 864,000 Taxpayers of August 7 Digital Deadline

HM Revenue and Customs (HMRC) issued a two-week warning to approximately 864,000 sole traders and landlords earning over £50,000 to meet an August 7 deadline. This is the first quarterly update under the Making Tax Digital (MTD) system, which requires taxpayers to submit records of income and expenses via approved software for the first three months of the tax year.

HM Revenue and Customs began the mandatory rollout in April 2026. While a 12-month transitional grace period currently prevents penalty points for late quarterly updates, HMRC will eventually implement a points-based system that triggers a £200 fine after four missed submissions. The standard final tax return and payment deadline remains January 31, 2027.

HMRC plans to expand the MTD requirement to taxpayers earning over £30,000 in April 2027 and those earning over £20,000 in April 2028. Craig Ogilvie, HMRC’s Director of Making Tax Digital, described the transition as a landmark moment for the tax system.