HMRC is stressing that registration remains open for anyone who has not yet enrolled

More than 864,000 Britons have just two weeks to meet a new HMRC reporting deadline.

Those affected must submit their first digital update by August 7, 2026.

The update must cover income and expenses from the first three months of the tax year and be filed using compatible software.

The rules apply to people with more than £50,000 in qualifying income from self-employment and property.

They must now keep digital records and provide HMRC with quarterly summaries under Making Tax Digital for Income Tax.

Anyone who has not registered can still sign up through GOV.UK. HMRC will not issue penalty points for late quarterly updates during the scheme's first year.

The August 7 deadline is the first quarterly reporting date under Making Tax Digital for Income Tax, which became compulsory in April 2026.

The rules apply to sole traders and landlords whose combined qualifying income from self-employment and property exceeds £50,000.

Anyone who has not yet registered can still enrol through GOV.UK, where HMRC also provides a list of compatible software, free guidance and webinars.

Taxpayers who use an accountant or tax agent can ask them to complete the registration process on their behalf.

The quarterly update is not a tax return. It is a short digital summary of income and expenses sent directly to HMRC through compatible software.

After submitting it, taxpayers can view an estimate of how much tax they may owe, helping them budget during the year.

Some approved software also includes HMRC Assist, a digital tool that provides personalised guidance and flags possible errors before the update is submitted.

However, the responsibility for ensuring accuracy ultimately rests with the taxpayer.

Craig Ogilvie, HMRC's Director of Making Tax Digital, described the moment as historic. "This is a landmark moment for the tax system.

"Hundreds of thousands of sole traders and landlords are now keeping digital records and will be sending their first quarterly update in the coming weeks," he said.

He added: "For those already using software, this should be straightforward and take minutes. If you haven't signed up yet, there is still time - visit GOV.UK and search 'Making Tax Digital for Income Tax' to get started."

Mr Ogilvie emphasised that MTD is now a legal requirement and urged all affected taxpayers to verify their registration and software compatibility before the deadline.

Despite the looming deadline, HMRC has confirmed that no penalty points will be issued for missed quarterly updates throughout the first year of the scheme. Penalties for late Self Assessment returns and overdue payments, however, remain in force.

From the second year onwards, a points-based system kicks in: each missed quarterly deadline earns one penalty point, and once four points accumulate, a fixed £200 fine is levied. Points can expire following a sustained period of compliance.

The programme will broaden its reach to those earning above £30,000 from April 2027, with the threshold dropping further to £20,000 from April 2028.

Traditional Self Assessment returns remain due by January 31 each year.