If you’re a sole trader or landlord affected by Making Tax Digital (MTD) for Income Tax, another key deadline is fast approaching. You must submit your second quarterly update to HMRC by 7 November 2026.

Under the new Making Tax Digital rules, HMRC has changed the way sole traders and landlords report their income. Instead of submitting one tax return each year, those affected must keep digital records and send updates to HMRC every three months using compatible software.

Since April 2026, MTD has applied to sole traders and landlords with income above £50,000. While many people submitted their first update successfully, HMRC figures show thousands missed the first deadline in August, highlighting that the new system is taking time to get used to.

The second update is another reminder that MTD isn’t a one-off task. Businesses and landlords need to keep their records up to date throughout the year so they can submit their quarterly information on time.

Many people are still adapting to the changes. Common issues include keeping digital records up to date, understanding what information needs to be recorded and choosing software that works with HMRC’s systems. Leaving things until the last minute can make the process much more difficult and stressful.

The changes are also set to affect many more people.  From 6 April 2027, the income threshold will reduce from £50,000 to £30,000, meaning thousands more sole traders and landlords will need to follow the MTD rules. HMRC has also confirmed plans to extend the scheme further to those with income of £20,000 or more in the future.

Sean Farnell, Partner at Burgis & Bullock, said: “The second deadline is a good opportunity to review your records and make sure everything is up to date. With the threshold reducing to £30,000 next year, businesses and landlords need to start preparing now rather than waiting until the changes affect them.”

To help local businesses and landlords understand the new rules, Burgis & Bullock is planning to host further free Making Tax Digital briefings in early 2027 at their Leamington Spa and Stratford-upon-Avon offices. Details will be published on our website and Eventbrite in due course. The briefings will explain what MTD means in plain English, who is affected, what records need to be kept and the practical steps you can take to stay compliant and avoid any last-minute panic.

For further information, please contact Burgis & Bullock at www.burgisbullock.com/contact-us/