First Making Tax Digital Filing Deadline Arrives as Fintech Helps Sole Traders Adapt

The first quarterly submission deadline under Making Tax Digital (MTD) for Income Tax is approaching, marking a significant milestone in the UK’s transition to digital tax reporting.

By 7 August, sole traders and landlords with qualifying income above £50,000 who joined Making Tax Digital from April 2026 must submit their first quarterly update to HMRC, covering the period from 6 April to 5 July.

The new rules require affected taxpayers to keep digital records and submit quarterly updates using HMRC-recognised software, replacing traditional annual reporting with more regular digital record keeping.

As the deadline approaches, fintech providers are playing an increasingly important role in helping businesses adapt to the new requirements. Starling Bank, founded by Welsh entrepreneur Anne Boden and home to a significant technology hub in Cardiff, is among those offering integrated, HMRC-recognised Making Tax Digital software, allowing eligible sole trader customers to manage digital records and submit quarterly updates directly through their banking platform.

Starling’s HMRC-recognised software is integrated into its sole trader account, bringing bookkeeping, tax estimates and quarterly submissions together within one platform.

Daniel Hogan, Product Director at Starling Bank, said:

“Sole traders and landlords making over £50,000 now need to use HMRC-recognised software under the new Making Tax Digital for Income Tax rules. Plenty of options exist, including free tools like the one we made for Starling customers. There is still time, but act soon.

“Sole traders and landlords crossing the £30,000 a year threshold should start looking into software so they’re ready for when they have to sign up for Making Tax Digital from April 2027. Speaking as a former accountant, I know how confusing new tax rules can be, so if you’re struggling, consider asking a qualified accountant for help.

“The deadline for the first quarterly submission is 7 August, covering income from 6 April to 5 July this year. Once you’re signed up for Making Tax Digital for Income Tax on HMRC’s website, you can link your compatible software to your HMRC account instantly to submit online. If you are choosing software now, Starling sole trader customers won’t need to manually enter past transactions as our software will include income from April onwards automatically.

“There is no immediate fine if you miss the deadline, but penalties will apply in the future. It is best to get into the habit of meeting deadlines from the start. You still have plenty of time, so submit your tax update as soon as you can.”

Starling’s accounting software is integrated into its sole trader account and enables customers to maintain digital records, categorise income and expenses, estimate tax liabilities and submit quarterly updates directly to HMRC. The bank launched the HMRC-recognised tool earlier this year as part of its wider accounting offering for sole traders.

The latest deadline represents the first major test of the government’s Making Tax Digital for Income Tax programme, which is being introduced in phases. From April 2027, the rules will extend to sole traders and landlords with qualifying income above £30,000, before expanding to those earning more than £20,000 from April 2028.

For Wales’ growing fintech ecosystem, the rollout also highlights the role that digital financial services are playing in helping businesses navigate changing regulation. With fintech firms developing integrated compliance tools alongside everyday banking services, technology is becoming an increasingly important part of how sole traders and small businesses manage their financial obligations.

Find out more: Visit the HMRC Making Tax Digital guidance or learn more about Starling’s free Making Tax Digital for Income Tax software.