More than 864,000 self-employed workers and landlords are facing a deadline this Friday, August 7, to submit their first quarterly update under the Government's Making Tax Digital for Income Tax scheme. The requirement applies to sole traders and landlords earning more than £50,000 a year from self-employment or property income.
What the quarterly update involves
The update covers income and expenses for the first three months of the current tax year and must be submitted to HM Revenue & Customs using compatible software. HMRC has stressed that the quarterly update is not a tax return. Instead, it is a short digital summary that takes only a few minutes to complete and allows users to keep their tax records up to date throughout the year.
Those who have not yet signed up can still register through GOV.UK or ask their accountant or tax agent to do it on their behalf. Some approved software also includes HMRC Assist, which helps users identify potential errors before submitting their update.
HMRC director urges action
"This is a landmark moment for the tax system," said Craig Ogilvie, HMRC's director of Making Tax Digital. "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. For those already using software, this should be straightforward and take minutes. If you haven't signed up yet, there is still time - visit GOV.UK and search 'Making Tax Digital for Income Tax' to get started."
Wider roll-out ahead
Making Tax Digital for Income Tax is now a legal requirement for those within the current earnings threshold. The scheme is due to expand further, covering people earning more than £30,000 from April 2027 and those earning more than £20,000 from April 2028.
HMRC has also reminded taxpayers that quarterly updates do not replace the annual Self Assessment tax return. Anyone affected will still need to file their tax return and pay any tax owed by January 31, 2027.
