Making Tax Digital: The First Quarterly Deadline Has Passed, What the Numbers Show
RealYield Team
Property Analyst
The first Making Tax Digital quarterly deadline came and went on 7 August 2026. Here's what actually happened, and why the next few months matter even if you already filed on time.
We covered how to submit a quarterly update back in May. This is the debrief: how many landlords actually filed, what HMRC is doing about the ones who didn't, and what changes from next April.
The Numbers So Far
More than 436,000 sole traders and landlords sent their first quarterly update to HMRC by the 7 August deadline, HMRC confirmed. Over 570,000 have signed up to Making Tax Digital for Income Tax in total.
Set that against the number who should be in the system. HMRC has said more than 864,000 sole traders and landlords are in scope from April 2026, based on qualifying income above £50,000 in the 2024-25 tax year. On HMRC's own figures, that means fewer than half of everyone who should be using MTD has actually sent a quarterly update, and a meaningful chunk haven't even signed up yet.
Quarterly updates aren't tax returns. They're short summaries of your income and expenses for the quarter, sent through compatible software, and HMRC says most take minutes to complete once your records are in order. The gap between 864,000 in scope and 436,000 filed isn't really about the update itself being hard. It's about landlords not getting round to signing up in the first place.
Frequently Asked Questions
How many landlords have submitted their first Making Tax Digital update?
More than 436,000 sole traders and landlords submitted their first Making Tax Digital for Income Tax quarterly update by the 7 August 2026 deadline, according to HMRC. Over 570,000 have signed up to the service in total, out of more than 864,000 who are in scope.
What happens if I missed the 7 August 2026 MTD deadline?
There's no penalty for a late quarterly update in the 2026-27 tax year. You can still submit through HMRC-recognised software with no penalty points attached. But you must catch up before you can file your end-of-year return, and from September 2026 HMRC is starting to automatically sign up landlords who should be using MTD but haven't registered.
Is HMRC really signing landlords up for Making Tax Digital automatically?
Yes. From September 2026, HMRC is writing directly to sole traders and landlords who meet the income threshold but haven't yet signed up, enrolling them in Making Tax Digital for Income Tax in stages over the following months. The letters go to the taxpayer, not their accountant or agent, so it's worth telling your adviser if one arrives.
When does the Making Tax Digital threshold drop below £50,000?
From 6 April 2027, the threshold falls to landlords and sole traders with qualifying income over £30,000. From 6 April 2028, it falls again to over £20,000. The 2027 change also ends the current penalty-free grace period for missed quarterly updates.
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