Landlords and sole traders warned over HMRC deadline as new tax rules begin
Around 864,000 sole traders and landlords must file their first quarterly update, with no late-filing penalties in the first year, HMRC said.
- Today, August 7, marks the first Making Tax Digital reporting deadline for around 864,000 sole traders and landlords earning more than £50,000 annually. Those affected must submit quarterly updates to HMRC using compatible software.
- The Government introduced this reporting system for those earning more than £50,000 annually. The scheme will expand to people earning more than £30,000 from April 2027 and those earning more than £20,000 from April 2028.
- Elsa Littlewood, tax partner at BDO, noted the deadline timing creates challenges for compliance. "The first reporting deadline comes at a rather inconvenient time when many people will be trying to enjoy their summer holiday," she added.
- HMRC will not issue penalties for late quarterly updates during the first year, providing a grace period. Once four penalty points accumulate, HMRC will issue a £200 fixed penalty, with further penalties possible for continued non-compliance.
- Littlewood warned that HMRC is considering Self Assessment reforms that could bring tax payment dates forward from April 2029. "While the rules are not yet set in stone, we could conceivably see payment demands being brought forward to coincide with quarterly MTD reporting deadlines," she said.
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Landlords and sole traders warned over HMRC deadline as new tax rules begin
Around 864,000 sole traders and landlords must submit their first Making Tax Digital report to HMRC by August 7 2026. Here's who is affected.
First quarterly reporting deadline under MTD for landlords
Today marks the first quarterly reporting deadline under Making Tax Digital for Income Tax, and take-up has been slower than HMRC will have hoped. FOI data Landlord Studio received from HMRC in May showed around two thirds of property-income taxpayers in scope had still not signed up more than a month after the rules came into force. Logan Ransley, Landlord Studio, makes the point that the real shift isn’t the extra deadlines but the change in h…
ACCA warns 400,000 landlords and sole traders risk missing MTD deadline
Around 400,000 self-employed people and landlords are on course to miss the Making Tax Digital (MTD) deadline on 7 August, the Association of Chartered Certified Accountants (ACCA) said. HMRC figures show that just over 400,000 of the 850,000 taxpayers mandated to join the scheme have registered so far. This leaves more than half still outside the system ahead of what is being described as the biggest reform of the UK tax regime in a generation.…
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