HMRC has confirmed that more than 436,000 sole traders and landlords have successfully submitted their first Making Tax Digital (MTD) for Income Tax quarterly update for the 2026/27 tax year. Over 570,000 people are now signed up to the service.
That’s good progress — but HMRC isn’t stopping there.
From September 2026, HMRC will begin automatically signing up the remaining taxpayers in the first wave who should already be using MTD but haven’t registered yet. This covers sole traders and landlords with qualifying income over £50,000 (based on earlier tax returns). Estimates put the number still to be enrolled at well over 250,000.
Crucially, HMRC plans to contact these taxpayers directly, rather than going through their accountants or agents.
What this means for you
If you fall into this group and haven’t signed up yet:
• You will receive a letter or notification from HMRC confirming you’ve been signed up.
• New guidance explaining exactly what to do when that letter arrives is expected later this month (late August 2026).
• You can avoid the automatic process by signing up yourself now via GOV.UK. Doing it yourself means you stay in control of the details from day one and can choose the software that suits you best.
Key points to remember
• No late-update penalties this year — HMRC has confirmed there will be no penalty points for late quarterly updates during 2026/27. Penalties for quarterly deadlines start from April 2027.
• Quarterly updates are not tax returns. They are short digital summaries of your income and expenses for the quarter, submitted through HMRC-recognised software. They typically take just a few minutes once your records are up to date.
• You still need to submit a final declaration (and pay any tax due) by 31 January after the end of the tax year. The quarterly updates simply feed into that process.
• The Self Assessment tax return for the previous year (2025/26) still needs to be filed in the normal way by 31 January 2027.
Why act now?
Signing up yourself (or getting your accountant to help you do it) is almost always better than waiting for HMRC to do it for you. You can:
• Check and correct your details immediately
• Choose software that works for your business
• Get support set up properly from the start
• Avoid any last-minute scramble when the automatic letters start arriving
We’re the MTD experts – let us help
At My Accountant Friend we specialise in Making Tax Digital for sole traders and landlords. We’ve already guided hundreds of clients through their first quarterly updates and software set-up.
Whether you’ve just received (or expect to receive) an HMRC letter, you’re unsure if you’re in scope, or you simply want everything handled smoothly, we’re here to help.
Visit myaccountantfriend.com today to book a free MTD review or speak to one of our specialists. We’ll check your position, recommend the right software, get you signed up correctly, and make sure your quarterly updates and year-end are handled without stress.
Don’t wait for HMRC’s letter. Take control now — and let the MTD experts at My Accountant Friend do the heavy lifting!