New August tax deadline passed – HMRC sends warning to taxpayers
Key Points
- The first deadline for Making Tax Digital has passed, with HMRC warning qualifying taxpayers to act now.
- Taxpayers whose combined turnover from self-employment and property was over £50,000 in the 2024/25 tax year must send quarterly updates to HMRC.
- HMRC will not yet be awarding penalty points for missed updates, but qualifying taxpayers must still submit all their quarterly updates, even if they are late.
- Making Tax Digital does not replace annual Self Assessment tax returns, which must still be filed where applicable.
HMRC has warned taxpayers that the first quarterly update deadline for Making Tax Digital has now passed, urging them to act now if they have not yet sent their update.
Taxpayers whose combined turnover from self-employment and property was over £50,000 in the 2024/25 tax year must send quarterly updates to HMRC as part of its new Making Tax Digital requirements.
The first deadline of 7 August 2026 has now passed, but HMRC will not begin awarding penalty points for missed deadlines until the next tax year.
However, missed or late payment of tax will still incur penalties, and missed updates will need to be filed even after the deadline has passed.
It is important to note that Making Tax Digital applies to turnover, not necessarily profit, and that the thresholds will decrease for the coming tax years.
If your annual turnover is above £30,000, you will need to sign up for Making Tax Digital from 6 April 2027; and if your turnover is above £20,000, you will need to sign up from 6 April 2028.
Making Tax Digital does also not replace the Self Assessment annual tax return, meaning that those who usually file an annual Self Assessment return will need to continue doing so, in addition to filing quarterly updates for Making Tax Digital.
More than 436,000 sole traders and landlords sent their first Making Tax Digital (MTD) for Income Tax quarterly update, and over 570,000 customers have now signed up to the service.
Collating tax information and submitting updates can be done yourself through free or paid software, and many digital banks allow you to build and submit your Making Tax Digital update directly from their platforms.
The latter option is especially easy if your business revenue and spending runs through a single account, as you can track income and expenses, and submit an update, from within a single interface.
A full guide on software options for Making Tax Digital is available on the HMRC website.
As a reminder, if you earned above £50,000 in 2024/25 from self-employment or property, and you have not yet signed up for Making Tax Digital, you have already missed the first deadline.
However, no penalty points will be applied and you must still submit your first quarterly update. Begin by signing up for MTD on the HMRC website.
