UK small businesses face August 7 deadline for Making Tax Digital

The first quarterly filing deadline for the UK’s Making Tax Digital (MTD) for Income Tax scheme is set for 7 August 2026. The new rules require sole traders and landlords with qualifying income over £50,000 to keep digital records and submit quarterly updates to HMRC through authorised software.

Research from Tide shows that 26 % of qualifying owners in London have not yet signed up, a figure above the national average of 25 %. Lloyds Bank’s survey found that 55 % of small businesses nationwide are still unprepared, equating to roughly 475,000 sole traders and landlords. Both reports highlight a lack of awareness about the filing frequency – 85 % of surveyed owners do not know they will need to file five times a year.

To help businesses meet the deadline, Tide is running a free‑ice‑cream outreach at Victoria Station and Broadgate on 23‑24 July, offering advice on switching to MTD. Lloyds has integrated HMRC‑recognised MTD functionality into its Business Accounts at no extra cost, aiming to simplify tax administration for its customers.