We link to the original sources below. Sections labelled “Sandycroft analysis” contain our interpretation and practical suggestions. Product and service links are commercial suggestions from Sandycroft, separate from the source reporting.
SOURCED NEWS SUMMARY
The news
HM Revenue & Customs published a reminder on 2 November for sole traders and landlords earning more than £50,000 who are within Making Tax Digital for Income Tax. Their second quarterly update is due by Saturday 7 November 2026 and must be sent through HMRC-recognised software, including bridging software where a spreadsheet is used.
HMRC says the quarterly update is a summary of self-employment and property income and expenses, not a tax return. There is no tax calculation and no payment is due when it is submitted. A mistake in a digital record should be corrected as soon as possible and will be reflected in the next update; the previous quarterly update does not need to be resent.
SANDYCROFT ANALYSIS
Sandycroft business context: identify the person and income stream
Start with the legal taxpayer, not the trading name. The notice is directed at qualifying sole traders and landlords; it is not a corporation-tax filing for a limited company. A company director could still have separate self-employment or property income, so each person should confirm their own position with their accountant or the official eligibility guidance.
List every relevant income stream, the software file that holds it, the bank or payment account feeding the records and the person responsible for the update. Do not assume that VAT software, a year-end accountant handover or a company bookkeeping file automatically completes the MTD for Income Tax requirement.
SANDYCROFT ANALYSIS
Run a five-day digital-record check
Reconcile the update period to business-bank, card-processor and marketplace records. Check that sales are not duplicated when a platform payout and the underlying orders both enter the books. Match expenses to receipts and supplier invoices, review refunds and chargebacks, and make sure personal transfers or director movements have not been coded as trading income or costs.
For makers and online sellers, sample-check garment, blank mug, ink, thread, packaging, postage and marketplace-fee entries against source documents. For landlords, keep the property records separate from any trade. Record questions for the accountant now rather than waiting until Saturday, when the full weekday support service will not be available.
SANDYCROFT ANALYSIS
Submit, save evidence and keep working records current
Use the recognised software or bridging route already linked to the taxpayer. Review the period dates and totals before sending, then save the submission receipt, timestamp and software reference with the reconciliation. HMRC says submission history can be checked in the online account or through the software, so there is no need to call merely for reassurance after a successful update.
Keep the receipt separate from the underlying invoices and digital records: it proves transmission, not that every entry is correct. Add a short post-submission note for corrections still to be made in the next period and assign an owner and date. This is a quarterly information step; the overall tax position is calculated later through the 2026–27 tax return.
CHECK THE ORIGINAL REPORTING