HMRC has issued an urgent reminder about the upcoming August 7 deadline for hundreds of thousands of Britons, warning taxpayers to "make sure you're signed up." In a post on X on Monday, July 6, the UK tax authority flagged that the first quarterly update under its Making Tax Digital for Income Tax changes is "fast approaching."
Taxpayers are reminded: "You need to send your first quarterly update by 7 August if you’re a sole trader or landlord with a combined turnover of over £50,000. Make sure you’ve signed up." This requirement applies to those who must now file digitally as part of the phased rollout of Making Tax Digital.
Background of Making Tax Digital
HMRC introduced the Making Tax Digital scheme for VAT-registered businesses in 2022 as part of a transition to an all-digital service. From April 6, 2026, the tax authority began requiring individuals with self-employment and property income exceeding £50,000 in turnover to keep digital records and submit quarterly updates using MTD-compatible software.
Taxpayers must use approved software to submit these updates. According to the GOV.UK website, quarterly updates are "summaries of your business income and expenses. Every 3 months, your compatible software adds together your digital records to create totals for each income and expense category. These totals are then sent to HMRC as a quarterly update." However, this does not mean tax is paid quarterly; tax remains due via the annual Self Assessment process.
Key Deadlines for 2026 and Beyond
After the first quarterly update on August 7, 2026, other important dates for those in the £50,000 turnover bracket include:
- November 7, 2026 – Deadline to send your second quarterly update
- January 31, 2027 – Deadline to submit a Self Assessment tax return for 2025 to 2026
- February 7, 2027 – Deadline to send your third quarterly update
- May 7, 2027 – Deadline to send your fourth quarterly update
- August 7, 2027 – Deadline to send your first quarterly update for 2027 to 2028
- November 7, 2027 – Deadline to send your second quarterly update
- January 31, 2028 – Deadline to submit your tax return via MTD software for 2026 to 2027
- February 7, 2028 – Deadline to send your third quarterly update
- May 7, 2028 – Deadline to send your fourth quarterly update
Exemptions and Exclusions
There are several exemptions from Making Tax Digital, some automatic and others requiring an application. Automatic exemptions include: if your qualifying income is £20,000 or less; if you do not have a National Insurance number before the start of the tax year; and permanent exemptions unless your circumstances change. Partnerships are also completely excluded under current legislation.
Exemptions you can apply for include a digitally excluded exemption for those who have a fair reason not to use digital services, such as age, disability, or religious beliefs.
Future Phases of Rollout
HMRC is rolling out digitisation of returns for self-employment and property letting in phases based on turnover. Those with a turnover above £30,000 will have to start filing quarterly updates from April 6, 2027, and those with turnover above £20,000 from April 6, 2028. Full details on rules and exemption criteria are available on the GOV.UK website.
