The first quarterly deadline under Making Tax Digital for Income Tax passed on 7 August 2026, marking the start of a new reporting routine for many sole traders and landlords in the UK.
The rules apply from the 2026–27 tax year to people with more than £50,000 in qualifying gross income from self-employment and property. Quarterly updates do not replace the annual tax return. They are periodic summaries generated from digital records held in compatible software.
What changed in April 2026?
Those within scope must keep digital records and use compatible software to send quarterly updates to HM Revenue & Customs. For standard update periods, the first period ran from 6 April to 5 July 2026. Calendar update periods can instead run from 1 April to 30 June.
The first deadline was 7 August 2026. The next quarterly deadline is 7 November 2026, followed by 7 February 2027 and 7 May 2027.
What should businesses do now?
Businesses already within the system should focus on keeping their digital records current rather than treating the quarterly update as a miniature tax return. HMRC explains that each update is built from the income and expense records held in compatible software.
People with more than one qualifying business or both self-employment and property income may need separate updates for each source. The details can vary with accounting arrangements, so individual cases should be checked against current HMRC guidance or with a qualified tax adviser.
What if the first deadline was missed?
HMRC has stated that no penalty points will be issued for late quarterly updates during the 2026–27 tax year. That does not remove the reporting obligation, and the normal rules for late Self Assessment returns and late tax payments remain separate.
From the following tax year, points-based penalties are due to apply to missed quarterly deadlines.
Why this matters for independent workers
For sole traders, the important change is less about filing four extra tax returns and more about maintaining a continuous digital record throughout the year. That makes software setup, bookkeeping habits and the separation of business records more important than before.
This article is general information, not individual tax advice. HMRC guidance should be checked for the current rules, exemptions and thresholds.
