Missed the 7 August MTD Deadline? What HMRC Says to Do Next

7 August 2026 was the first Making Tax Digital (MTD) for Income Tax quarterly update deadline for in-scope sole traders and landlords with qualifying income over £50,000. If you have not yet sent that update — or your agent is still finishing digital records — HMRC’s published guidance is clear: there are no penalty points for late quarterly updates in the 2026 to 2027 tax year, but unfinished updates still block a clean path to the Self Assessment tax return.

A quarterly update is a category summary of self-employment and property income and expenses sent through compatible software. It is not a tax return and not a demand for payment. HMRC does not receive individual receipts or invoices — only the totals your software builds from digital records covering the tax year to date.

First-year penalty pause — and what still bites

HMRC will not apply points-based late submission penalties for missed quarterly update deadlines during 2026 to 2027. That soft landing is deliberate: the first year is for bedding in digital records and software links. Treat it as breathing room to catch up, not as permission to skip updates.

You still need to send each quarterly update before you can submit the year-end tax return. Late Self Assessment return penalties and late payment penalties continue to apply on their normal rules. Interest still accrues on late tax. Missing Q1 does not wipe later deadlines — the second update remains due by 7 November 2026.

Catch-up checklist if Q1 is still outstanding

Confirm you (or your agent) are signed up for MTD for Income Tax, that compatible software is linked to HMRC, and that agent authorisations are in place where an accountant sends updates for you. HMRC’s agent special edition stresses that those three steps must be complete before software can send an update.

Finish digital records for the first update period — standard periods run 6 April to 5 July 2026; calendar periods run 1 April to 30 June 2026. Each send is cumulative from the start of the tax year to the end of the update period, so corrections later refresh the year-to-date picture without resending earlier updates.

Check and send as soon as totals look right. You can also send updates more often than once a quarter if your software allows — for example after a large receipt — but every send still covers the full period to date. You cannot switch between standard and calendar update periods for a tax year after you have already sent a quarterly update.

Use the estimate — then diary November

After you send, compatible software or your HMRC online services account can show an estimate of tax on self-employment and property income. HMRC may fold in PAYE employment income or student loan plan type it already holds. Estimates are planning tools only — not payment demands — and are less accurate if other income is missing or your accounting period does not match the tax year.

Keep books current through autumn so the 7 November second update is a review step. Later 2026/27 deadlines are 7 February 2027 and 7 May 2027. The final declaration and balancing payment for 2026/27 remain due by 31 January 2028 under HMRC’s published MTD timetable.

How FinnAccountings helps after a late start

Organised bank, sales, and expense categories shorten the path from catch-up bookkeeping to quarterly update totals your adviser can review. FinnAccountings helps Ireland and UK sole traders and landlords prepare bookkeeping and tax packs with Chartered Accountant insight before you or your ICAEW/ACCA or Chartered Accountant (Ireland) adviser reviews figures. Start a free trial for review-ready drafts — we prepare packs; we do not submit MTD quarterly updates or Self Assessment returns to HMRC on your behalf.

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Related reading

See our post-first-update briefing for estimates, corrections, and joint-property options, and use the free tax calculator only for high-level Income Tax and National Insurance planning.

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