HM Revenue and Customs (HMRC) has issued a fresh alert ahead of a tax deadline this Saturday, November 7. In doing so, HMRC stated it was assisting sole traders and landlords earning more than £50,000 to prepare for their second Making Tax Digital (MTD) for Income Tax quarterly update by addressing some of the most frequently raised questions since the first quarterly update in August. Customers are required to submit their second quarterly update to HMRC on Saturday.
HMRC answers Making Tax Digital questions
Firstly, it clarified that an MTD quarterly update was not a tax return. It is a brief summary of self-employment and property income and expenditure, submitted via compatible software. No tax calculation is involved and no payment is required upon submission. Customers' overall tax position is only determined once they file their tax return for the 2026 to 2027 tax year.
Secondly, it noted that, should a customer have successfully completed their first quarterly update in August, there is no need to recheck their status or contact HMRC for confirmation. They are able to review their submission history at any point by logging into their HMRC online account or through MTD software, without the need to telephone or use webchat.
Software options and record keeping
Thirdly, HMRC noted that a range of HMRC-recognised software options are available to suit varying needs and circumstances. Some customers opt for software designed specifically for sole traders and landlords, while others prefer more sophisticated accounting packages. Certain free software options are also on offer. Customers may also utilise spreadsheets linked to bridging software. Guidance is available on GOV.UK to assist people in selecting MTD compatible software that is most suitable for them.
Fourthly, HMRC stated that MTD enabled customers to keep their records up-to-date throughout the year. Should a customer identify an error in a digital record, they should rectify it at the earliest opportunity. The amendment will subsequently be reflected in the next quarterly update they submit – meaning there is no requirement to resubmit quarterly updates.
HMRC phone line availability confirmed
Finally, customers were informed they could submit their second quarterly update before or on November 7, and it made no difference that the date fell on a weekend. HMRC said it was encouraging people to submit it as early as possible following the close of the update period.
Customers requiring support should contact HMRC during the week when the full phone service is operational. However, phone support will be available through the Self Assessment helpline on Saturday, November 7, from 9am to 3pm for customers who need assistance with submitting their quarterly update.
'Do it early'
Craig Ogilvie, HMRC's director of Making Tax Digital, said: "Thousands of sole traders and landlords have already successfully sent their first quarterly update and we want the second to be just as straightforward. As the next deadline approaches, we're helping customers prepare with confidence by answering common questions about MTD and highlighting the support available."
"Customers can send their update any time before November 7 and I would encourage them to do so as early as possible to ensure they have everything in place before the deadline."
It is worth noting that quarterly updates are not tax returns, meaning no tax is owed upon submission, and customers are able to keep their records current throughout the year. For further details regarding MTD for Income Tax, visit GOV.UK.
