Sole traders and landlords using Making Tax Digital for Income Tax have until November 7 to submit their next quarterly update to HMRC, as thousands adjust to new digital reporting rules.
Who must comply with Making Tax Digital
Making Tax Digital for Income Tax became mandatory in April 2026 for sole traders and landlords whose qualifying income exceeded £50,000. The next quarterly update deadline is November 7, 2026, for those following the standard reporting timetable.
The rules are being introduced in stages, with eligibility based on qualifying income from self-employment and property. People whose 2024–25 Self Assessment tax return showed qualifying income of more than £50,000 were required to start using the system from April 6, 2026.
Future thresholds and who joins next
The next group will join from April 2027. This will affect sole traders and landlords whose 2025–26 tax return shows qualifying income of more than £30,000. The threshold is then scheduled to fall to more than £20,000 from April 2028, based on the 2026–27 tax return.
Qualifying income means gross income from self-employment and property before expenses are deducted. It is not the same as profit, and income from these sources is considered together when checking the threshold.
What people need to do
Those covered by the rules must use compatible software to keep digital records of their business and property income and expenses. They must also send quarterly updates to HMRC summarising their income and expenses.
These updates are not tax returns and do not replace the annual Self Assessment process. Taxpayers must still check and submit their annual return and pay any tax owed by the usual deadline.
People who use spreadsheets may be able to continue doing so, but they will need compatible software, sometimes known as bridging software, to submit the required information. HMRC does not provide the software itself. Taxpayers can use its online guidance to find compatible products and understand what they need to do.
What happens if you miss the HMRC deadline
HMRC has introduced a penalty-points system for late submissions under Making Tax Digital. However, the department has confirmed that it will not apply penalty points for late quarterly updates during the 2026–27 tax year.
Taxpayers must still submit their required updates before they can complete their tax return. Separate penalties can apply for late payment of tax.
Anyone who is unsure whether they need to use the system should check their previous Self Assessment return and the official HMRC guidance. Sole traders and landlords can find the eligibility rules, sign-up service and software guidance on the official GOV.UK website.
