The first Making Tax Digital for Income Tax quarterly update is due 7 August 2026, and research commissioned by Tide estimates around 216,000 qualifying sole traders and landlords still haven't registered.
- Tide's research, based on a survey of 500 sole traders and landlords earning over £50,000, found one in four qualifying business owners had not signed up.
- Against HMRC's estimate of 864,000 people in the first phase, that puts unregistered numbers at roughly 216,000.
- 22% of those surveyed did not know the first deadline was approaching at all.
- 85% did not know how often they would need to file — nearly a third thought it would be eight times a year or more; the actual figure is five.
What's actually due on 7 August
Making Tax Digital for Income Tax requires five submissions a year: four quarterly updates plus one final declaration. The 7 August 2026 deadline is the first of those quarterly updates — not a tax return, and not the same as Self Assessment. The Self Assessment deadline for the relevant tax year remains 31 January 2027.
Why so many people are behind
Tide's findings suggest the gap isn't mainly people ignoring the rules — it's people not knowing the rules exist or how they work. Nearly a quarter of those surveyed were unaware the deadline was approaching, and the vast majority underestimated or didn't know the filing frequency. For a sole trader or landlord who has just discovered they're inside Making Tax Digital, the immediate question isn't which software to buy — it's what they're likely to owe.
What to do if you're one of the 216,000
Registering late is better than not registering, and the absence of first-year penalty points for late quarterly updates gives some room to catch up without an automatic fine. The practical next step is establishing an estimate of what's owed before opening any accounting software, since that number determines how urgent the registration itself is.
Frequently asked questions
Is the 7 August 2026 deadline a full tax return?
No. It's the first quarterly update under Making Tax Digital for Income Tax. Self Assessment for the relevant tax year is still due 31 January 2027.
Will I be fined for missing the quarterly update deadline?
HMRC has confirmed no penalty points will apply to late quarterly updates during the first year of the scheme, though filing on time is still the better option.
How many times a year do I need to file under Making Tax Digital?
Five times: four quarterly updates plus one final declaration — not the eight-or-more that nearly a third of those surveyed by Tide assumed.