HM Revenue and Customs (HMRC) has sent a fresh reminder to sole traders and landlords. The 7 November 2026 Making Tax Digital (MTD) deadline is close.
On 2 November 2026, HMRC answered five common questions about quarterly reporting. The goal is to help taxpayers send their second update without confusion.
If the new rules cover you, you must send your income and expense details through approved software by Saturday. HMRC has also confirmed that you don’t need to pay any tax when you send the update.
Who Must Meet the 7 November MTD Deadline?
Making Tax Digital for Income Tax became mandatory on 6 April 2026. It applies to sole traders and landlords with qualifying gross income above £50,000.
HMRC measures this threshold on income before expenses, not on profit. It includes qualifying income from self-employment and property.
If this applies to you, it’s time to send your second quarterly update. For standard reporting periods, it covers 6 April to 5 October 2026.
The update includes all income and expenses since the start of the tax year, not just the last three months.
HMRC Clears Up Five Common MTD Concerns
HMRC’s latest guidance explains what you need to know before you send your update.
1. A quarterly update is not a tax return
You only send a summary of your income and expenses. You don’t need to work out your tax or pay anything at this stage.
2. You do not need to call HMRC to confirm submission
If you sent your first update in August, you can check your submission history in your HMRC online account or your compatible software.
3. Expensive accounting software is not compulsory
HMRC accepts a range of recognised software, including some free options. You can also use a spreadsheet linked to bridging software, though many businesses find cloud accounting software simpler to manage.
4. Errors do not always require another submission
If you spot a mistake in an earlier period, fix your digital records. The correction will show up in your next quarterly update.
5. Saturday submissions are allowed
7 November falls on a Saturday, but you can still send your update that day. HMRC’s Self-Assessment helpline will offer support from 9 am to 3 pm.
What Happens If You Miss the Deadline?
HMRC has confirmed that late quarterly updates won’t earn penalty points during the 2026–27 tax year.
That doesn’t remove the requirement, though. You still need to keep digital records and send any outstanding updates before you complete your annual Self-Assessment tax return. Penalties for late tax returns still apply. From the next tax year, late quarterly updates can earn penalty points. Four points can lead to a £200 penalty.
What Should Sole Traders and Landlords Do Now?
The deadline is near, so check your digital records and make sure your software is ready to submit. Look for missing income, missing expenses, or errors before you send the update, and keep your bookkeeping up to date throughout the year.
If you use a spreadsheet, confirm that your bridging software works with HMRC’s system. HMRC advises you to submit early instead of waiting until Saturday.
How Can Lanop Help?
Digital reporting can feel tough, especially when you juggle business income, rental records, and tax duties.
At Lanop, our accountants help sole traders and landlords understand their Making Tax Digital requirements, review financial records, and manage tax reporting as part of wider tax planning.
Whether you need help with compatible software or quarterly updates, Lanop can guide you through each step.
Contact Lanop to review your MTD obligations before the 7 November deadline.
