Over 436,000 sole traders and landlords submit first digital tax update
UKPulse Money Desk
More than 436,000 sole traders and landlords have successfully submitted their first Making Tax Digital for Income Tax quarterly update for the 2026 to 2027 tax year.
- Over 436,000 sole traders and landlords have sent their first Making Tax Digital (MTD) for Income Tax quarterly update.
- Sole traders and landlords earning over £50,000 have been required to keep digital records and send quarterly updates since April 2026.
- HMRC will begin signing up customers for MTD for Income Tax from September 2026 if they have not yet done so.
More than 436,000 sole traders and landlords have successfully sent their first Making Tax Digital (MTD) for Income Tax quarterly update for the 2026 to 2027 tax year. This initial update covers the first three months of the tax year.
Sole traders and landlords with an income exceeding £50,000 have been required to maintain digital records and submit quarterly updates to HM Revenue and Customs (HMRC) since April 2026. Over 570,000 customers have now signed up to the service.
Customers who have not yet submitted their first quarterly update can do so now, with no penalty for late updates during the 2026 to 2027 tax year. However, penalties for late tax returns and late payments still apply.
From September 2026, HMRC will start contacting and signing up customers who are required to use MTD for Income Tax for the current tax year but have not yet registered. This process will occur in stages over the coming months.
Why this matters: This marks an important milestone in the transition to a more modern tax system for sole traders and landlords.
What this means for you: If you are a sole trader or landlord earning over £50,000 and have not yet signed up for Making Tax Digital for Income Tax, you can do so now to ensure your details are correct and prepare in your own time, before HMRC contacts you from September.