Making Tax Digital: the next quarterly update is due by 7 November
Digital reporting has been compulsory since April for sole traders and landlords earning over £50,000. Year one carries no penalty points — but the annual return has not gone away.
Since 6 April 2026 Making Tax Digital for Income Tax has been compulsory for sole traders and landlords whose income from self-employment and property exceeds £50,000. The threshold is assessed on the 2024–25 Self Assessment return; HMRC checks it and writes to those who are caught.
How the deadlines work
Updates are filed quarterly through approved software. The first — covering 6 April to 5 July — was due by 7 August. The next covers 6 July to 5 October and is due by 7 November 2026. The pattern continues: 7 February and 7 May.
Those who elected calendar quarters had a first period of 1 April to 30 June, with the rest shifted accordingly.
Penalties: a year of grace
In the first year of the regime — the 2026–27 tax year — no penalty points are issued for late quarterly updates. From year two a points system applies: one point per missed deadline and a fixed £200 penalty once four points accumulate. Points expire after a period of compliance.
What digital reporting does not replace
A quarterly update is not a tax return. Self Assessment is still due by 31 January, and penalties for a late return and for late payment apply regardless of the quarterly points system. This is the part most often missed: four quarters filed, and the year assumed closed.
Who is next
The thresholds fall in stages. From 6 April 2027 the regime becomes compulsory above £30,000, assessed on the 2025–26 return. From 6 April 2028 the threshold drops to £20,000, assessed on the 2026–27 return — which means the year now under way is, for many small traders, the one that will pull them in.
You can check whether and when the requirement applies to you on HMRC's own page, linked below.
