Sole traders and landlords in the first mandatory phase of Making Tax Digital for Income Tax must send their second quarterly update by Saturday 7 November, HM Revenue & Customs has reminded taxpayers. The deadline applies to those with qualifying income above £50,000 who entered the new reporting system in April 2026, unless an exemption applies.
The quarterly submission is not a final tax return and does not itself trigger an income tax payment. It transmits data held in digital business records to HMRC, while the year-end return is still needed to check the full position, claim reliefs, and account for other relevant income. Existing tax payment dates are unchanged by this quarterly reporting requirement.
Affected taxpayers must use software recognised for Making Tax Digital, which can include dedicated bookkeeping products, more comprehensive accounting software, or spreadsheets connected through bridging software. HMRC has published a list of compatible products, including some free options, to help taxpayers find a system suitable for their records.
The update periods are cumulative. For someone following standard tax-year quarters, the second update covers records from 6 April to 5 October, including information already covered in the first update. Taxpayers opting for calendar quarters have a different end date for the period, but the same 7 November deadline. The third and fourth updates are due on 7 February and 7 May 2027 respectively.
HMRC has also clarified what happens when an error is discovered. Taxpayers should correct the underlying digital record promptly, allowing the change to appear in the next quarterly submission. They do not normally need to resend the earlier quarterly update solely because the correction has been made.
The reporting timetable differs from the annual Self Assessment cycle. For the 2026–27 tax year, the year-end return made through compatible software must be submitted by 31 January 2028. In the transition year, taxpayers also retain their separate responsibilities for earlier years’ Self Assessment returns.
The 7 November deadline remains in force even though it falls on a Saturday. HMRC encourages earlier submission and has arranged Self Assessment helpline support between 9am and 3pm on the deadline day. The Agent Dedicated Line will not operate that Saturday, although webchat support will be available during its specified hours.
Digital exclusion and other exemptions remain available for taxpayers who meet the relevant conditions. The phased expansion will bring sole traders and landlords with qualifying income over £30,000 into mandatory reporting from April 2027, followed by those over £20,000 from April 2028.
For small businesses and accountancy practices, the immediate requirement is to ensure the digital records and compatible software cover the appropriate period and that the update is transmitted before the deadline. HMRC is distinguishing those recurring information submissions from the final calculation and payment of income tax.
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