More than 436,000 sole traders and landlords have submitted their first quarterly update under the UK's new Making Tax Digital regime, marking a significant step in the government's
overhaul of income tax reporting.
HM Revenue & Customs said on Wednesday that more than 570,000 people had now signed up to the service, with the first quarterly submissions covering the opening three months of the 2026-27 tax year.
Making Tax Digital for Income Tax became a legal requirement in April for sole traders and landlords with qualifying annual income above £50,000 from self-employment and property. Those affected must maintain digital records and provide HMRC with quarterly updates using compatible accounting software.
The first wave of submissions comes as the government pushes ahead with plans to move more taxpayers towards digital reporting. HMRC said anyone who has not yet filed their first quarterly update can still do so, with no penalty points for late submissions during the 2026-27 tax year.
From September, the tax authority will begin automatically signing up people who fall within the scope of the system but have not registered. The process will be rolled out in stages over the following months.
HMRC is urging eligible taxpayers to register themselves rather than wait to be contacted. Early registration allows them to check their details, select suitable software and prepare for the new requirements on their own timetable.
Craig Ogilvie, HMRC's director of Making Tax Digital, said the number of successful submissions represented an important milestone in the transition to a more modern tax system.
He said feedback from many users suggested that the process was straightforward when completed through their chosen software, while encouraging those who had yet to register to act before HMRC begins automatic enrolment.
Further guidance is due to be published later in August setting out what taxpayers should do if they receive a letter informing them that HMRC is registering them for the service.
The quarterly updates are not tax returns. Instead, they provide HMRC with brief summaries of income and expenses and are designed to be completed within minutes through compatible software.
The existing Self Assessment system remains in place, with the usual 31 January filing deadline. Taxpayers within the Making Tax Digital regime will still have to complete a Self Assessment return, but they must submit their required quarterly updates before they can file it.
HMRC has published additional online guidance for taxpayers who need to register, choose software and comply with the new digital reporting requirements.
