Thousands of sole traders and landlords face a tax deadline on Saturday 7 November, when the second Making Tax Digital quarterly update for Income Tax falls due. HM Revenue and Customs has reminded those affected to send their update by the deadline.

Who has to file

Making Tax Digital for Income Tax became mandatory from 6 April 2026 for sole traders and landlords whose qualifying income exceeded £50,000 in the 2024/25 tax year. More than 800,000 taxpayers are required to report under the system. HMRC said less than half had signed up by September, and it has begun automatically enrolling those who have not yet joined.

What the update involves

A quarterly update is a short summary of self-employment and property income and expenses, sent to HMRC through recognised software. It is not a tax return: no tax is calculated and nothing is due to be paid when the update is sent. For standard update periods, the second update covers income and expenses from 6 April to 5 October 2026 on a cumulative basis. The first quarterly update was due on 7 August.

Five things HMRC wants filers to know

HMRC published five myth-busters on 2 November to clear up common misunderstandings. It confirmed no payment is due with an update, mistakes can be corrected, and updates can be sent on Saturday 7 November itself. The Self Assessment helpline will be open from 9am to 3pm on the day. HMRC also confirmed it will not apply penalty points for late quarterly updates during the 2026/27 tax year.

Who comes next

The scheme widens over the next two years. From 6 April 2027 it will reach sole traders and landlords earning more than £30,000, and from 6 April 2028 those earning more than £20,000.