2 October 2026
A recent news release from HMRC states that over 400,000 sole traders and landlords filed their first MTD quarterly return for the quarter to 5 July 2026, ahead of the 7 August 2026 deadline.
However, it is believed that HMRC were expecting over 800,000 individuals to comply with MTD for 2026/27, which means that around half of the people expected to comply, have missed the deadline. Whilst no penalties will be imposed for missing the deadlines for 2026/27, this is not expected to be the case for 2027/28 returns.
From September 2026, HMRC will begin signing up customers who will need to report via MTD software for 2026/27. As a reminder, this will be individuals with sole trade and / or rental income over £30,000. This will be particularly important for those that fall into self assessment for 2025/26 for the first time, as they will have to:
- File their 2025/26 tax return by 31 January 2027.
- Start 2027/28 MTD compliance from April 2027.
- File their 2026/27 tax return by 31 January 2028.
So in theory, the individuals may be filing 2027/28 information ahead of 2026/27 information.
It is best to take advice early in this respect and ensure that you are fully compliant, ahead of MTD penalties being imposed from 2027/28.
As ever, our team are available to help.
