HMRC recently announced that come September, they’ll start signing up eligible sole traders and landlords for Making Tax Digital (MTD). Crucially, this isn’t all sole traders and landlords – just those who were required to register for MTD this tax year, but haven’t yet.
If this is you, it could be worth getting a head start on your MTD obligations, rather than waiting for HMRC to get the ball rolling. You’ll need to create digital records of all income and expenses using MTD-compatible software, and submit your first quarterly update. No time to lose!
💡 Hnry is MTD-compatible. Better yet, we do MTD for you.See how it works.
Don’t worry if all the above sounds like complete jargon. Let’s go through it step by step: what HMRC’s announcement is all about, who it applies to, and the MTD due dates you need to hit. Here’s everything you need to know:
HMRC’s MTD announcement
On 12 August, shortly after the first-ever MTD deadline, HMRC issued a press release. They announced that more than 436,000 sole traders and landlords submitted their first quarterly update, of the over 570,000 who’d registered.
While this was a positive first step, they also noted that not everyone who should be registered for MTD is actually registered.
HMRC plans to narrow the gap by enrolling eligible earners who haven’t done it themselves. Starting September, they’ll begin signing up outstanding sole traders and landlords in stages.
The good news for these people is that no late penalties will be applied to late MTD submissions this tax year. But if you’re required to register for MTD for tax year 2026/27, and you haven’t done it yet, it’s potentially worth signing up before HMRC does it for you.
You’ll be able to make sure all your details are correct from the get-go, rather than going through the hassle of updating HMRC if they get something wrong. You’ll also have more time to choose the MTD-compatible software that’s right for you.
Who does HMRC’s announcement apply to?
HMRC plans on enrolling anyone who was required to start using MTD from 6 April 2026. That’s sole traders and landlords who earned over £50,000 in annual qualifying income.
💡 For more on what counts as “qualifying income”, check out ourMTD explainer.
If you haven’t signed up for MTD yet, you’re still required to fulfil all MTD obligations. Like we mentioned earlier, there won’t be penalties applied this tax year for late submissions, but they may apply in the future!
What does MTD involve again?
MTD for Income Tax came into effect on 6 April 2026. It requires eligible sole traders and landlords to:
- Keep digital records of your income and expenses using MTD-compatible software
- Send HMRC quarterly updates via your software
- Submit your final tax return
MTD due dates for 2026/27
| Update | Deadline |
|---|---|
| Q1 | 7 August 2026 |
| Q2 | 7 November 2026 |
| Q3 | 7 February 2027 |
| Q4 | 7 May 2027 |
MTD is aimed at helping users streamline their tax admin, making it easier to complete by requiring regular updates rather than one submission at the end of the tax year. The right software can make a real difference to the whole process. Speaking of which –
Hnry does MTD for you
You can go through all the admin of getting MTD sorted yourself. Or you can join Hnry – we don’t just keep your digital records, we do MTD for you.
For 1% +VAT of your self-employed income, capped at £600 +VAT a year, Hnry will complete and submit your quarterly updates and final tax return on your behalf. It’s literally that simple.
Better yet, every time you’re paid through the Hnry Account, we calculate and pay your:
- Income Tax
- National Insurance contributions
- Student loan repayments (if applicable)
- VAT (if you’re registered)
… so you never have to set any of that aside yourself. It’s all sorted for you as you earn. Easy!
Join Hnry today, and never think about tax again.