Half of taxpayers for Making Tax Digital are unregistered as deadline passes
3 weeks ago | 8 comments
Landlords face automatic Making Tax Digital sign-up
12:01 AM, 13th August 2026, 3 weeks ago
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Landlords who have not signed up for Making Tax Digital (MTD) face being automatically enrolled from September, although late first quarterly updates will not attract penalty points this tax year.
HMRC will begin registering those required to use the system in stages over the coming months.
It says that more than 436,000 sole traders and landlords submitted their first quarterly update for the 2026 to 2027 tax year, while more than 570,000 customers have joined the service.
The rules have applied since April to those with qualifying income of more than £50,000 from property and self-employment.
HMRC urges early action
Craig Ogilvie, HMRC’s director of Making Tax Digital, said: “It’s fantastic to see so many sole traders and landlords successfully sending their first quarterly updates.
“This marks an important milestone in the move to a more modern tax system, with many customers telling us that the process is straightforward and works well through their chosen software.”
He added: “If you haven’t yet signed up, now is the time to do so.
“Taking action now means you stay in control, can make sure your Making Tax Digital for Income Tax details are correct from the start, and have time to choose the software that works best for you, rather than waiting for HMRC to sign you up from September.”
Late updates escape penalties
For most taxpayers, the first update covered the period from 6 April to 5 July 2026, while those using calendar periods reported from 1 April to 30 June.
The deadline for both groups was 7 August.
Outstanding updates can still be submitted through HMRC-recognised software without attracting penalty points during 2026 to 2027.
Penalties continue to apply to late tax returns and overdue payments.
Lower threshold from 2027
From April 2027, Making Tax Digital will also apply to sole traders and landlords with qualifying income of more than £30,000.
Quarterly updates are short summaries of income and expenses rather than tax returns.
The Self Assessment deadline remains 31 January, and taxpayers within the scheme must complete their updates before they can submit a return.
From 6 April 2027, each missed quarterly deadline will add one penalty point, with a £200 fine imposed once four points have accumulated.
Tags:
HMRC quarterly updates, Landlord Tax, Making Tax Digital landlords, MTD for income tax, MTD penalties, Self Assessment landlords
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New buy to let mortgage rates from 3.55%
Member Since February 2016 - Comments: 986 - Articles: 1
10:10 AM, 13th August 2026, About 3 weeks ago
Rarely the government issue a more ridiculous initiative than this one.
It is just another burden and cost to LLs. Serves absolutely ZERO PURPOSE.
Member Since July 2013 - Comments: 236
10:19 AM, 13th August 2026, About 3 weeks ago
Four points in a year equals a £200 fine. Less than the cost of the software for most!
Member Since January 2024 - Comments: 411
10:44 AM, 13th August 2026, About 3 weeks ago
I hope they take into account whether taxpayers have taken action to avoid MTD by forming partnerships or limited companies. I bet they don’t!
This will leave many taxpayers who have been automatically registered battling to de-register! Hopefully they will pay compensation to all those who have incurred costs and inconvenience.
Member Since October 2025 - Comments: 9
10:45 AM, 13th August 2026, About 3 weeks ago
Another unfair burden.
It’s totally unacceptable to put this extra pressure and stress on all small business owners.
I can see what’s coming once they have forced everyone to sign up we will then Be forced to pay tax 4 times a year. Why? So the government coffers get filled faster. If they get a quarter of everyone’s tax in August, instead of waiting till January . . . They gain big time.
And we are poorer yet again.
The money I save from income each year for my taxes earns me interest during the year. A small amount but still better than nothing. Scale that up and all those billions of small amounts become a huge sum when the government hoovers them up.
This is nothing more than an underhand extra money grab.
Member Since July 2013 - Comments: 510 - Articles: 1
12:46 PM, 13th August 2026, About 3 weeks ago
Reply to the comment left by Ray Davison at 13/08/2026 – 10:19
Great post!
Member Since July 2013 - Comments: 510 - Articles: 1
12:47 PM, 13th August 2026, About 3 weeks ago
Reply to the comment left by Whiteskifreak Surrey at 13/08/2026 – 10:10
We live in Clownworld Land
Member Since August 2026 - Comments: 13
3:59 PM, 14th August 2026, About 3 weeks ago
Reply to the comment left by Ray Davison at 13/08/2026 – 10:19
Once you hit the four-point threshold it’s £200 for that failure and £200 for every subsequent late submission, and points stop expiring automatically at that stage.
Doesn’t apply for 26 / 27 though.
Member Since July 2015 - Comments: 48
1:08 PM, 18th August 2026, About 2 weeks ago
Sold 3 houses (and 4th going through) over the past 4 years and nicely brings us under the £20k each pa. So no MTD for me.
My tenants are all long termers paying around half market rent…not because I’m a charity but because I bought these places for ‘not a lot’, tenants have repaid my mortgages over 20 years (as interest rates plummeted) and now I own them outright.
Now they are assets for family ownership and to pass to grandkids as each child becomes the right sort of age. CGT of course but they will be valued and gifted in shocking derelict condition. Then I can gift more pennies by helping them renovate and hopefully then live for 7 years.
No point building wealth now my pension has IHT too….goalposts moving all the time.
Best defence is to make sure the whole family are modestly looked after and non of us are ‘rich’
And by 75 make sure there is nothing held so the gov can look after me.
So intent is to rotate and hold what property we have, no point renting them all out…we dont need the cash flow because I need to empty that pension due to IHT (and double tax for kids), we dont want to spend daft money on EPC compliance…
Its not just labour though…they have all been spending too much, mainly corruption…not even misplaced socialism…..the left and right finished about 20 years ago.
So my wealth and property are no longer mine, they are the government’s to dictate regulations, EPCs, land tax etc. So if its not mine anymore I would rather gift it and let my kids and grandkids waste it rather than the gov spend it on Andy Burnhams wife Neto zero interests (plus all the other gov families self interests) and HS2 and quangos.
Its not like it will go on NHS patient care, education or those who really do struggle to look after themselves. That changed decades ago.
Happy days…spend it, gift it or lose it.