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 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, with the first update covering the first three months of the tax year.

In 2026 to 2027, 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.

Craig Ogilvie, HMRC’s Director of Making Tax Digital, says: “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.”

New guidance will be published in late August to explain what landlords 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. 

HMRC insists that quarterly updates are not tax returns; they are short summaries sent through compatible software.

The Self Assessment tax return deadline remains January 31. 

HMRC is going to some length to insist that quarterly updates do not replace Self Assessment but those in scope will have to send their quarterly updates to be able to submit a tax return.