- Over four hundred thousand taxpayers successfully submitted their first digital quarterly updates by the August seventh deadline.
- Approximately fifty point five percent of eligible landlords and sole traders completed the initial reporting requirement.
- HMRC will begin automatically enrolling unregistered taxpayers starting in September twenty twenty-six to ensure system compliance.
HM Revenue & Customs said 436,000 of the 864,000 people covered by Making Tax Digital for Income Tax submitted their first quarterly update by the deadline. The result covers the first mandatory reporting round under the UK’s digital tax system.
As of August 12, 2026, the first filing deadline had passed. Taxpayers needed to report for the period from April 6 to July 5, 2026, by August 7, 2026.
Free toolSubstantial Presence Test Calculator
The submitted total represented approximately 50.5% of those affected. The initial group consists of sole traders and landlords with qualifying annual income exceeding £50,000.
Registration ran ahead of filing. HMRC said 570,000 people had registered, leaving a difference between those who joined the service and those who completed the first update.
That gap does not establish why individuals had not filed. It does show that registration alone did not produce a completed submission by the cutoff.
Craig Ogilvie, HMRC’s Director of Making Tax Digital, said the first round showed taxpayers using their chosen software to send updates.
“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. If you haven’t yet signed up, now is the time to do so. Taking action now means you stay in control. rather than waiting for HMRC to sign you up from September.”
The first rollout leaves registration ahead of completed filing
The figures divide the first rollout into three stages: the people covered, those registered and those who submitted. The calculated gaps show how many fewer people completed an update than registered or fell within the affected group.
| First rollout measure | Figure or date |
|---|---|
| Affected taxpayers | 864,000 |
| Registered taxpayers | 570,000 |
| First updates submitted | 436,000 |
| Registered but not submitted by the cutoff | 134,000 |
| Affected taxpayers without a submitted update by the cutoff | 428,000 |
| First reporting period | April 6 to July 5, 2026 |
| First submission deadline | August 7, 2026 |
The service requires taxpayers to keep digital records and send quarterly updates through compatible software. HMRC-recognized software connects those records with the department’s systems.
The first cycle therefore introduced a new reporting task during the year. Taxpayers had to organize information covering a defined period and transmit it electronically rather than wait for the August deadline itself.
A first-year easing arrangement applies. During 2026/27, taxpayers who miss quarterly updates will not receive late-filing penalty points, provided they maintain digital records.
The arrangement softens the first year’s penalty treatment, but it does not remove the record-keeping requirement. Digital records remain part of the system during the transition.
HMRC will begin automatic enrollment in September
HMRC plans to automatically enroll eligible taxpayers who have not registered themselves starting in September 2026. The move follows the first filing round and gives the department a direct role in bringing unregistered people into the service.
Ogilvie urged people who have not signed up to act before that process begins. His statement also said customers had described the process as straightforward through their chosen software.
The immediate task is administrative: registration, digital record keeping and quarterly reporting must be brought together. The first figures show that those steps have not progressed at the same pace across the affected population.
The threshold drops and the penalty system tightens in 2027
The mandate will expand from April 2027 to sole traders and landlords with qualifying income over £30,000. That change will bring taxpayers below the first threshold into the digital reporting system.
A separate penalty milestone follows. The points-based penalty system for late submissions is scheduled to become fully enforceable on April 6, 2027.
| Upcoming milestone | What changes |
|---|---|
| September 2026 | HMRC begins automatically enrolling eligible taxpayers who have not registered |
| April 2027 | The mandate expands to qualifying income over £30,000 |
| April 6, 2027 | The points-based penalty system becomes fully enforceable |
The 2026/27 soft landing comes before the full penalty regime. Taxpayers still need to maintain digital records during that period.
The government’s guidance on using the service sets out the software and record-keeping framework for the rollout. The next enrollment phase begins in September 2026, followed by the wider threshold and penalty changes in 2027.
This article is for informational purposes only and does not constitute tax advice. Consult a qualified tax professional or CPA about your specific situation.
