HMRC busts five common Making Tax Digital myths ahead of the 7 November quarterly update deadline.
HM Revenue and Customs ( HMRC ) is helping sole traders and landlords earning more than £50,000 prepare for their second Making Tax Digital ( MTD ) for Income Tax quarterly update by answering some of the most common questions raised since the first quarterly update in August.
Fact: An MTD quarterly update is not a tax return. It’s a short summary of self-employment and property income and expenses, which is sent through compatible software. There’s no tax calculation involved and no payment is due when you send it.
Customers’ overall tax position is only calculated when they submit their tax return for the 2026 to 2027 tax year.
Fact: If a customer successfully completed their first quarterly update in August, there’s no need to recheck their status or contact HMRC for reassurance. They can check their submission history at any time by logging into their HMRC online account or through MTD software, without needing to call or use webchat.
Fact: There are a variety of HMRC -recognised software options to suit different needs and circumstances. Some customers use software designed specifically for sole traders and landlords, while others use more advanced accounting packages. Some free software options are also available. Customers can also use spreadsheets linked to bridging software. There is guidance on GOV.UK to help people choose MTD compatible software that is right for them.