Sole traders and landlords face 7 November Making Tax Digital update deadline: five myths

Correct as at 3 November 2026.

Sole traders and landlords with qualifying income above £50,000 must send their second Making Tax Digital for Income Tax quarterly update to HMRC by Saturday 7 November 2026, HMRC said.

Who has to send the update?

Making Tax Digital for Income Tax became mandatory from 6 April 2026 for sole traders and landlords whose income from self-employment and property is above £50,000.

Qualifying income is total turnover from self-employment and property before expenses, based on the tax return for the previous tax year. For the first stage, that is the 2024 to 2025 return.

Those who must use the system send an update for each self-employment and property business they have.

What are the five myths?

HMRC set out five common misunderstandings that have arisen since the first update in August.

Myth one is that a quarterly update is the same as a tax return. HMRC said it is a short summary of income and expenses sent through compatible software, with no tax calculation and no payment due.

Overall tax is calculated only when the return for the 2026 to 2027 tax year is submitted.

Myth two is that people must contact HMRC to check it received an update. HMRC said anyone who completed the first update in August need not recheck their status or call for reassurance.

Submission history can be checked at any time in an HMRC online account or through the software, without phoning or using webchat.

Myth three is that only specialist accounting software will do. HMRC said recognised options range from products built for sole traders and landlords to more advanced accounting packages, and some are free.

Spreadsheets can also be used if linked to bridging software.

Myth four is that a mistake in the last period means the previous update must be resent. HMRC said a corrected digital record will be reflected in the next quarterly update, so there is no need to resend.

Myth five is that the Saturday deadline means updates must go before the weekend. HMRC said customers can send on or before 7 November and encouraged people to send as early as possible.

Craig Ogilvie, HMRC’s director of Making Tax Digital, said: “Thousands of sole traders and landlords have already successfully sent their first quarterly update, and we want the second to be just as straightforward.”

How does a quarterly update work?

Every three months, compatible software adds together digital records to create totals for each income and expense category, and these totals are sent to HMRC.

HMRC guidance said each update covers the tax year so far, from 6 April to the end of the update period. HMRC does not receive individual receipts or invoices.

A business with no income or expenses in a period must still send an update.

Which dates apply?

For those using standard update periods, the second update covers 6 April to 5 October and is due by 7 November. For those with a 1 April to 31 March accounting period, it covers 1 April to 30 September and has the same deadline.

The third update is due by 7 February 2027 and the fourth by 7 May 2027, HMRC said in its timeline.

An update can be sent at any time after the end of the update period, up to and including the deadline day. It can also go up to 10 days before the period ends if no further transactions are expected.

What help is there on Saturday 7 November?

HMRC said the full phone service runs during the week, but the Self Assessment helpline will be open on Saturday 7 November from 9am to 3pm for those needing help sending an update.

The Agent Dedicated Line will not be available that day. Agents can use the Self Assessment helpline on 0300 200 3310. Webchat will run from 8am to 4pm.

What happens if an update is late?

HMRC will not apply penalty points for late quarterly updates during the 2026 to 2027 tax year. Updates must still be sent before a tax return can be submitted through software.

After that year, a late update earns a penalty point, and reaching 4 points brings a £200 penalty.

Who is left out?

Those whose qualifying income is £20,000 or less are automatically exempt, HMRC guidance says. Exempt people must keep reporting income and gains in a Self Assessment return as normal.

Other exemptions exist, including for people who are digitally excluded, some of which require an application. Partnerships do not currently need to use the system.

The scheme widens in stages: sole traders and landlords earning more than £30,000 from 6 April 2027, and more than £20,000 from 6 April 2028.

What was the previous rule?

Under Self Assessment, people submit one tax return each year and pay the bill by 31 January after the tax year ends. HMRC said that remains the case. The return for 2025 to 2026 is still due the usual way by 31 January 2027.

The return for 2026 to 2027, the first year of the new system, is due through software by 31 January 2028.

How can people check where they stand?

HMRC said in its main guidance that it began signing up in September 2026 those who need the system for 2026 to 2027, have not signed up, and whose records show qualifying income over £50,000 in 2024 to 2025.

Software can be checked through HMRC’s software finder, whose listed products have all been through its recognition process. HMRC does not recommend any product or provider. Free products suit simple tax affairs but may limit the number of transactions.

The next dated step is the 7 November deadline for the second update, followed by the third on 7 February 2027.