More than 864,000 taxpayers across the UK face a key HMRC tax deadline today, August 7. This is the first-ever quarterly update deadline under the government's Making Tax Digital for Income Tax programme.
Sole traders and landlords with qualifying income over £50,000 must submit their first quarterly update to HM Revenue and Customs (HMRC) before the deadline. The update covers income and expenses for the first three months of the tax year.
What you need to know
Making Tax Digital for Income Tax became mandatory from April of this year for those with qualifying income over £50,000. The first quarterly update period runs from April 6 to July 5 for most customers, though some can use calendar periods starting April 1. Regardless of the period, the deadline is today.
HMRC stressed that the quarterly update is not a tax return. It is a short digital summary of income and expenses submitted through HMRC-recognised software, usually taking only a few minutes.
How to comply
Customers who have not yet signed up can still register and choose compatible software. Those using a tax agent can ask them to complete the sign-up on their behalf.
After each update, taxpayers can view an estimate of their tax bill. Some software includes HMRC Assist, a digital tool that provides tailored feedback to help identify potential errors.
Penalties and future changes
Craig Ogilvie, HMRC's Director of Making Tax Digital, said: "This is a landmark moment for the tax system. Hundreds of thousands of sole traders and landlords are now keeping digital records and will be sending their first quarterly update in the coming weeks."
HMRC confirmed no penalty points will be issued for late quarterly updates during the first year. However, penalties for late Self Assessment returns and payments remain. From the second year, a points-based system will apply, with a £200 fixed penalty after four missed deadlines.
Making Tax Digital will extend to those earning over £30,000 from April 2027, and over £20,000 from April 2028. The annual tax return deadline remains January 31, and quarterly updates do not replace it.
