If you are a UK sole trader or landlord with income over £50,000, the Making Tax Digital quarterly update deadlines now shape your tax year. The first deadline passed on 7 August 2026, and the second one lands on 7 November 2026. Many people are still finding their feet with the new system, and HMRC has started writing to those who missed the first update.
This guide sets out every deadline for the 2026-27 tax year, explains what a quarterly update actually contains, covers the penalty position and shows what to do if you are behind. It is general information, not tax advice, so check your own position with HMRC guidance or an accountant.
- 100% free
- Call direct
- Voice search
- Urdu & English
In this article
Who Has to Follow Making Tax Digital for Income Tax?
Making Tax Digital (MTD) for Income Tax applies to self-employed people and landlords. You are brought in based on your gross income from self-employment and property combined (before expenses), as declared on an earlier tax return. The Low Incomes Tax Reform Group sets out the phased start dates:
Also readInvoice Factoring Explained: How It Works, What It Costs and When It Makes Sense
| Tax return tested | Qualifying income | MTD start date |
|---|---|---|
| 2024/25 | More than £50,000 | 6 April 2026 |
| 2025/26 | More than £30,000 | 6 April 2027 |
| 2026/27 | More than £20,000 | 6 April 2028 |
If you make your accounts up to 31 March, your start date is 1 April rather than 6 April. Dividends, pension income and PAYE wages do not count toward the threshold. The Association of Taxation Technicians (ATT) reported that HMRC expected about 864,000 people in the first wave, rising to almost 3 million by April 2028.
If your income is close to a threshold, good pricing decisions affect more than profit. Our guide on how to price your services as a freelancer can help you plan income with these thresholds in mind.
Making Tax Digital Quarterly Update Deadlines for 2026-27
Under the standard tax-year periods, each update is cumulative: it covers everything from 6 April to the end of the latest quarter. These are the dates published on HMRC’s official MTD for Income Tax timeline:
| Update | Period covered | Deadline |
|---|---|---|
| Quarter 1 | 6 April to 5 July 2026 | 7 August 2026 |
| Quarter 2 | 6 April to 5 October 2026 | 7 November 2026 |
| Quarter 3 | 6 April 2026 to 5 January 2027 | 7 February 2027 |
| Quarter 4 | 6 April 2026 to 5 April 2027 | 7 May 2027 |
| Tax return (final declaration) | Full 2026-27 tax year | 31 January 2028 |
You can also choose calendar quarters, where each period ends on the last day of a month (for example, 30 June rather than 5 July). The deadlines stay the same.
Do not forget your old Self Assessment return
In your first MTD year you still file a normal Self Assessment return for the previous tax year. For 2025-26, that deadline is 31 January 2027, and you file it the usual way.
What Goes Into a Quarterly Update?
A quarterly update is not a tax return, and you do not pay tax four times a year. HMRC describes updates as simple summaries of your income and expenses, pulled from your digital records. In practice that means:
- Totals of income and expenses for each self-employment business and each property business.
- Figures sent straight from MTD-compatible software, not typed into a web form.
- A running picture of your year, with an estimate of your tax bill after each update.
You still pay your Income Tax by 31 January, through your online tax account or the HMRC app, just as before. The final declaration is where you add other income (such as bank interest or pensions), claim reliefs and make adjustments.
Digital records come first
The update is only as good as the records behind it. MTD expects you to log sales and costs little and often in recognised software, whether that is a phone app or desktop bookkeeping package. Many small firms are already using automation for this; our article on how AI is changing small businesses in 2026 looks at the wider trend.
Penalties: What Happens If You Miss a Deadline?
MTD uses a points-based system for late submissions, but there is a soft landing in the first year.
The 2026-27 soft landing
According to the ATT, you will not receive a penalty point for missing a quarterly update deadline in 2026-27. However, any outstanding quarterly updates must be submitted before you can file your 2026-27 tax return, so you cannot simply skip them.
How the points system works
| Type of submission | Point threshold | Result |
|---|---|---|
| Quarterly updates | 4 points within 24 months | £200 penalty, plus £200 for each further late submission |
| Annual tax return | 2 points within 24 months | Penalty once the threshold is reached |
| Late payment | Not points-based | Penalties grow the later you pay |
Points expire after a period of compliance, as described by IPSE in its guide for sole traders. Points for updates, returns and payments are counted separately.
Missed the 7 August Deadline? Here Is What to Do
HMRC is writing to taxpayers who missed the first quarterly update for one or more of their businesses. The ATT reported on 20 October 2026 that the letters ask people to set up MTD-compatible digital records for the first three months of 2026-27 and send the outstanding update as soon as possible. If you are in that position:
- Choose compatible software now. Pick a product that HMRC recognises for MTD for Income Tax.
- Rebuild your records from 6 April 2026. Enter income and expenses from bank statements, invoices and receipts.
- Submit the first update. Send the overdue quarter 1 update as soon as your records are complete.
- Aim for 7 November. Because updates are cumulative, getting your records current also prepares your quarter 2 update.
- Talk to your agent. If you use an accountant, give them a copy of any HMRC letter straight away.
Tips to Stay Ahead of Every Deadline
- Book a recurring calendar reminder two weeks before the 7th of August, November, February and May.
- Record transactions weekly rather than leaving a quarter’s worth to the last minute.
- Separate business and personal spending with a dedicated bank account to make categorising easier.
- Go paperless where you can. Digital invoices and card payments flow more easily into software, a shift we cover in our piece on the future of digital payments.
- Review costs each quarter. Quarterly figures give you a regular chance to spot overspending; our guide on how to reduce costs during economic uncertainty has practical ideas.
- Use the tax estimate. Set aside money each quarter based on the estimate your software shows, so the January bill does not come as a shock.
FAQ
When is the next Making Tax Digital quarterly update due?
For the standard periods, the second update for 2026-27 is due on 7 November 2026, covering 6 April to 5 October 2026.
Do I pay tax every quarter under MTD?
No. Quarterly updates are summaries only. Payment dates do not change, and you still pay by 31 January.
Will I be fined for missing a quarterly update in 2026-27?
You will not get a penalty point for a missed quarterly update in 2026-27, but you must still submit all updates before filing your 2026-27 tax return.
Does MTD apply if my income is under £50,000?
Not yet. The threshold drops to more than £30,000 from 6 April 2027 and more than £20,000 from 6 April 2028, based on earlier tax returns.
Can I use calendar quarters?
Yes. You can choose periods that end on the last day of a calendar month. The deadlines stay the same.
Conclusion
The Making Tax Digital quarterly update deadlines are simple once you know them: 7 August, 7 November, 7 February and 7 May, with the final declaration due on 31 January after the tax year ends. The first year comes with a penalty-point soft landing, but every update still has to be filed before your tax return. Keep digital records weekly, use software you trust, and treat each quarter as a chance to understand your business finances. If anything about your situation is unclear, check HMRC’s guidance or speak to a qualified accountant.
