MTD 7 August 2026 —
Missed It? What To Do Now
Making Tax Digital for Income Tax became mandatory on 6 April 2026 for sole traders and landlords whose qualifying income was over £50,000 in the 2024–25 tax year. The first quarterly update deadline, 7 August 2026, has now passed. This page explains what HMRC's guidance says about that, what is still required, and what to do next.
What was the 7 August 2026 deadline?
It was the deadline for the first quarterly update of 2026–27. With standard update periods it covers 6 April to 5 July 2026; with calendar update periods it covers 1 April to 30 June 2026. The deadline is the same either way. A quarterly update is a summary of your income and expense totals for each category, not a tax return, and you do not need to make accounting or tax adjustments before sending it.
Who has to send quarterly updates?
You must use MTD for Income Tax if you are a sole trader or landlord registered for Self Assessment, you have self-employment or property income, and your qualifying income is above the threshold for your start date:
- Over £50,000 in 2024–25: mandatory from 6 April 2026
- Over £30,000 in 2025–26: mandatory from 6 April 2027
- Over £20,000 in 2026–27: mandatory from 6 April 2028
Qualifying income is your gross income (turnover before expenses) from self-employment and property. Employment income, dividends, pensions and your share of partnership profit do not count. HMRC writes to people it identifies, but if you did not get a letter it is still your responsibility to check. HMRC: find out if and when you need to use MTD ↗
What happens if you missed 7 August 2026?
But the obligation has not gone away:
- You must keep digital records and send your quarterly updates before you can submit your tax return.
- Penalty points still apply to a late tax return, and for the 2026–27 return the deadline is 31 January 2028.
- Late payment penalties and interest are separate and are not covered by the relief (see below).
Send any outstanding update as soon as you can, then keep to the November deadline.
Late payment: different rules
Late payment penalties apply to balancing payments, not payments on account. In your first year under the new rules you have 30 days from the due date to pay in full or agree a payment plan before penalties start. For tax relating to 2026–27:
| Payment is… | Penalty |
|---|---|
| Up to 15 days late | No penalty |
| 16 to 30 days late | 3% of the tax owed at day 15 (no penalty at this stage in your first year) |
| 31 days or more late | 3% at day 15 and 3% at day 30, plus 10% a year on the outstanding amount from day 31, for up to 2 years |
Late payment interest is charged separately from the first day. HMRC: penalties for MTD for Income Tax ↗
What to do right now: step by step
What if I'm not sure whether I qualify?
Use HMRC's official checker ↗ or our free MTD calculator. Once you are using MTD, you can choose to opt out if your qualifying income stays below the threshold for 3 tax years in a row. Some people are exempt, for example if their qualifying income is £20,000 or less, they have no National Insurance number, or they are digitally excluded. See our exemptions guide.
The full MTD deadline calendar for 2026–27
| Update | Standard period | Calendar period | Deadline |
|---|---|---|---|
| Q1 | 6 April – 5 July 2026 | 1 April – 30 June 2026 | 7 August 2026 (passed) |
| Q2 | 6 April – 5 October 2026 | 1 April – 30 September 2026 | 7 November 2026 (next) |
| Q3 | 6 April 2026 – 5 January 2027 | 1 April – 31 December 2026 | 7 February 2027 |
| Q4 | 6 April 2026 – 5 April 2027 | 1 April 2026 – 31 March 2027 | 7 May 2027 |
| 2025–26 Self Assessment return | Filed the usual way | 31 January 2027 | |
| 2026–27 tax return (from MTD software) | Replaces the Self Assessment return | 31 January 2028 | |
HMRC: quarterly update dates ↗
Frequently asked questions
Does the soft landing mean I don't need to send quarterly updates?
No. HMRC will not apply penalty points for late quarterly updates in 2026–27, but you still need to keep digital records and send your quarterly updates before you can submit your tax return. Penalty points still apply to a late tax return.
I missed the 7 August update. Should I still send it?
Yes. HMRC's guidance says you need to send your quarterly updates before you can submit your tax return, so send any outstanding update as soon as you can rather than leaving it. Your software will guide you, and an agent or HMRC can help if you are unsure.
What is the next MTD deadline?
7 November 2026, for the update covering 6 April to 5 October 2026 (or 1 April to 30 September 2026 if you use calendar update periods). After that: 7 February 2027 and 7 May 2027.
Are quarterly updates cumulative?
Yes. Each update covers the tax year from the start to the end of the update period, not just the previous three months. That means you can correct your records without resending earlier updates.
Do I still file a Self Assessment return for 2025–26?
Yes. The 2025–26 Self Assessment return is filed the usual way by 31 January 2027. The first return submitted directly from MTD software is for 2026–27, due 31 January 2028.
When can I send my next quarterly update?
Any time from the end of the update period up to the deadline. You can also send it up to 10 days before the end of the period if you do not expect to record any further transactions.
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