HM Revenue and Customs (HMRC) in the UK has reported that more than 436,000 sole traders and landlords have submitted their first quarterly update under the government’s Making Tax Digital (MTD) for Income Tax for the 2026 to 2027 tax year.
Announcing the figures, HMRC added that 570,000 people have now signed up to the service.
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This comes as sole traders and landlords with qualifying income above £50,000 ($67,404) have been mandated to keep digital records and send quarterly updates to HMRC since April 2026. The threshold will be brought down to £30,000 from April next year.
The first update covers the opening three months of the tax year.
HMRC said customers who have not yet filed their initial quarterly update can do so now using recognised software.
For 2026 to 2027, late quarterly updates will not attract penalty points.
From September, HMRC will start enrolling customers who must use MTD for Income Tax for the 2026 to 2027 tax year but have not yet signed up. This onboarding will take place in stages over the following months.
HMRC Making Tax Digital director Craig Ogilvie said: It’s fantastic to see so many sole traders and landlords successfully sending their first quarterly updates.
“This marks an important milestone in the move to a more modern tax system, with many customers telling us that the process is straightforward and works well through their chosen software.”
HMRC plans to publish new guidance in late August, setting out what taxpayers should do if they receive a letter about being signed up.
It noted that the Self Assessment tax return deadline remains 31 January.
The tax authority added that the quarterly MTD updates do not replace Self Assessment, but those within scope must submit their quarterly information in order to file a tax return.
