HMRC put a number on it this week. In a press release published on 23 July 2026, the department confirmed that more than 864,000 sole traders and landlords now signed up to Making Tax Digital for Income Tax have two weeks left to submit their first quarterly update. HMRC has kept the deadline at 7 August 2026. It’s still 7 August 2026. But you should read the announcement carefully, because tucked inside it are a couple of details that most MTD explainers, including plenty aimed at London taxpayers, haven’t picked up on yet.
This isn’t another generic countdown post. It’s a look at what HMRC said this week, what it means in practice for London’s sole traders and landlords specifically, and where the government’s upbeat messaging leaves out some detail that matters for anyone with more than one income source.
What HMRC Actually Confirmed This Week
The headline figure is straightforward: over 864,000 people are now in scope for MTD quarterly updates, and the first submission window covers income and expenses from 6 April to 5 July 2026 (or 1 April to 30 June for those using calendar update periods). HMRC explains that the first update is not a tax return. It’s a short digital summary, sent through recognised software, and the department says it should take minutes to complete for anyone already keeping proper digital records.
Craig Ogilvie, HMRC’s Director of Making Tax Digital, called it a landmark moment for the tax system, noting that hundreds of thousands of people are now keeping digital records for the first time. Those framing matters. HMRC isn’t just tracking a deadline here. It’s positioning this quarter as the actual start of a new relationship between taxpayers and the department; one built on ongoing digital reporting rather than a single annual return.
If you haven’t signed up yet, the announcement is a reminder that there’s still time, either through your own Government Gateway account or through an agent acting on your behalf. Our MTD for Income Tax quarterly deadline guide covers the sign-up process and software requirements in more detail.
Two Features HMRC Highlighted That Deserve More Attention
Buried in the announcement are two specific features that don’t get much airtime elsewhere, and both are worth knowing before your first submission.
HMRC Assist.
Some MTD-compatible software now includes a built-in digital support tool called HMRC Assist, which reviews your submission before you send it and flags potential errors or inconsistencies. It’s not a substitute for accurate record-keeping, and HMRC is explicit that customers remain responsible for the accuracy of what they submit, but it’s a genuinely useful safety net for anyone filing their first quarterly update without an accountant reviewing it first.
A running tax bill estimate.
After each quarterly update is submitted, the software shows an estimate of your tax bill based on the figures entered so far. This is arguably the most practical change buried in this announcement. Instead of waiting until January to find out what you owe, taxpayers now get a running forecast four times a year. For London landlords juggling mortgage costs against rental income, or sole traders whose earnings fluctuate quarter to quarter, that visibility can make a real difference to cash flow planning.
Why “It Only Takes Minutes” Doesn’t Tell the Whole Story for London
HMRC’s messaging this week, understandably, leans reassuring. The announcement includes a case study from a small business owner who filed her first update in about ten minutes, having kept her records up to date throughout the quarter. It’s a genuinely useful illustration of what MTD looks like when the underlying bookkeeping is already in good shape.
But it’s worth being honest about who that scenario fits best: someone with a single, straightforward income source and consistent habits already in place. That’s not the typical profile of a London sole trader or landlord. Higher property values mean a single rental flat can push someone over the £50,000 qualifying income threshold on its own, and it’s common in London for that rental income to sit alongside a separate trade, consultancy, or freelance work. Add a second property, a mix of furnished and unfurnished lets, or income that varies significantly by quarter, and “ten minutes” becomes a less realistic estimate.
None of this means MTD is unmanageable. It means the straightforward, single-income version HMRC describes in its own press release isn’t necessarily what most London taxpayers in scope should expect from their own first submission, particularly if digital records haven’t been kept consistently since April.
London’s contribution to that 864,000 figure is also worth pausing on. Property values here mean a smaller share of London landlords sit at the margins of the £50,000 threshold compared with the national picture; a single well-let flat in many parts of the city can push someone over the line on its own. That’s part of why the profile of a typical London filer looks different from the case study HMRC published this week. A single flat generating strong rental income, combined with even modest self-employment earnings on the side, is a common enough pattern in London to be worth planning for specifically, rather than assuming the national messaging applies evenly everywhere.
What This Means If You’re Not Ready Yet
With roughly two weeks left before 7 August, the practical priorities are the same ones HMRC’s announcement itself points to, just worth restating plainly:
- Confirm you’re signed up for MTD for Income Tax, either directly or through an agent
- Check that your software is genuinely on HMRC’s recognised list, not just a general bookkeeping app
- Bring your April to July records up to date now, rather than in the final few days
- If your income spans more than one source, allow extra time to reconcile everything before submitting
HMRC has confirmed there are no penalty points for late quarterly updates during this first year, but that concession doesn’t extend to late payment interest or to your year-end Self-Assessment return. Our detailed breakdown of MTD penalties for 2026/27 sets out exactly what is and isn’t covered by the soft landing, since the gap between the two catches people out more often than the headline deadline does.
It’s also worth thinking about this first update as setting a pattern rather than a one-off task to clear. Whatever habits get established now, whether that’s logging expenses weekly or leaving everything until deadline week, tend to carry through the remaining three quarters of the tax year. Getting the first submission right, with proper software and accurate records, makes each of the following three considerably easier.
How Brayan & Spencer Associates Can Help
HMRC’s announcement this week is aimed at reassuring the public that MTD is manageable, and for a lot of people, it genuinely is. But London sole traders and landlords are more likely than most to be dealing with combined income sources, multiple properties, or record-keeping that hasn’t been consistent since April. That’s exactly where having someone check your figures before submission earns its keep.
At Brayan & Spencer Associates, we’re helping sole traders and landlords across London get their first MTD quarterly update filed accurately, not just on time. That includes confirming your qualifying income, making sure your software is properly HMRC-recognised, and reviewing your records before anything goes to HMRC.
Call 0207 183 5956 or visit www.bsassociate.co.uk to get your first quarterly update handled properly before 7 August.
For more on the quarterly deadlines, penalties, and what’s actually required at each stage, browse our full Making Tax Digital blog category, including our guide to the first quarterly deadline on 7 August 2026.
Frequently Asked Questions
On 23 July 2026, HMRC confirmed that over 864,000 sole traders and landlords signed up to MTD for Income Tax have until 7 August 2026 to submit their first quarterly update, covering income and expenses from 6 April to 5 July 2026.
HMRC Assist is a digital support tool built into some MTD-compatible software that reviews your quarterly update before submission and flags potential errors. Customers remain responsible for the accuracy of what they file.
Yes. After each quarterly update is submitted, MTD-compatible software displays an estimate of your tax bill based on the figures submitted so far, giving a running forecast across the year rather than a single figure at January.
For taxpayers with a single, straightforward income source and consistent digital records, it can take only minutes. For London sole traders and landlords with combined income sources or inconsistent record-keeping, it typically takes longer and benefits from professional review.
No penalty points apply to late quarterly updates during the 2026/27 tax year. Late payment interest on tax owed still applies, and the year-end Self-Assessment return is not covered by this concession.
