HM Revenue and Customs (HMRC) has shared five things hundreds of thousands of taxpayers "need to know" ahead of an important deadline this weekend. Sole traders and landlords with annual gross income over £50,000 must send their second quarterly update for Making Tax Digital (MTD) for Income Tax by Saturday, November 7, 2026.
On April 6, 2026, HMRC introduced Making Tax Digital for Income Tax, making it mandatory for most Britons with a combined gross income of £50,000 or more from sole trades and property in the 2024/25 tax year to file the first of four quarterly updates on their income and expenses. The rule came in ahead of a phased rollout to sole traders and landlords with lower gross incomes over the next couple of years as part of a long-term shift towards all-digital filing.
The first filing deadline for the £50,000 cohort fell on August 7. HMRC has now shared five "myths" about MTD that Brits subject to the new rules should know.
Myth 1: A quarterly update is the same as a tax return
HMRC explains that a quarterly update is not a tax return, but rather a "short summary of self-employment and property income and expenses, which is sent through compatible software". "There's no tax calculation involved and no payment is due when you send it," it adds. "Customers' overall tax position is only calculated when they submit their tax return for the 2026 to 2027 tax year."
Myth 2: I need to contact HMRC to see if they have received my quarterly update
HMRC says if you've successfully completed your first quarterly update in August, "there's no need to recheck their status or contact HMRC for reassurance". Taxpayers subject to the rules can "check their submission history at any time by logging into their HMRC online account or through MTD software, without needing to call or use webchat", the department says.
Myth 3: I can only use specialist accounting software
The department says there are a variety of HMRC-recognised software options available that suit different needs and circumstances. "Some customers use software designed specifically for sole traders and landlords, while others use more advanced accounting packages," it explained. It added: "Some free software options are also available. Customers can also use spreadsheets linked to bridging software. There is guidance on GOV.UK to help people choose MTD compatible software that is right for them."
Myth 4: If I spot a mistake in my last update period, I need to resend the last update
HMRC says with MTD you can keep your information "up-to-date throughout the year". "If a customer spots a mistake with a digital record, then they should correct it as soon as possible," it adds. "The correction will then be reflected in the next quarterly update they send – so there's no need to resend quarterly updates."
Myth 5: Because the deadline falls on a Saturday, I need to find a way to send before the weekend
You can send your second quarterly update before or on November 7, HMRC explained, saying it is "encouraging people to send it as early as possible following the end of the update period". "Customers that need support should contact HMRC during the week when the full phone service is available. However, phone support will be available through the Self Assessment helpline on Saturday 7 November (from 9am to 3pm) for customers who need assistance with sending their quarterly update."
Key dates after November 7
After November 7, the other important dates to be aware of for people in the £50k bracket are: January 31, 2027 - Deadline to submit a Self Assessment tax return the usual way 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 straight from MTD for Income Tax 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.
However, there are a range of exemptions, some of which are automatic, and others that you have to apply for. HMRC says there are no penalties for missing a quarterly update deadline for the 2026 to 2027 tax year, a grace period put in place as people adapt to the new rules. But fines will be issued for not keeping records at all, and existing penalties for late filing of tax returns or payment still apply.
It marks stage one of the three-phase Making Tax Digital for Income Tax programme HMRC is bringing into effect across the next three tax years, The Chartered Institution of Taxation (CIOT) explains. Sole traders and landlords with a qualifying income of £30,000 for the 2025 to 2026 tax year will need to start using the system from April 6, 2027. Those with £20,000 of qualifying income for the 2026 to 2027 tax year will need to switch to the new reporting rules from April 6, 2028. You can find the official guidance and eligibility rules on the UK Government website.
