If you were required to use Making Tax Digital (MTD) for Income Tax from April 2026 and missed the first quarterly deadline on 7 August 2026, the main thing is to get the outstanding update submitted rather than ignore it.
For the 2026/27 tax year, HMRC says it will not apply penalty points for late quarterly MTD updates. However, you still need to send the required quarterly updates before you can submit your tax return, and the normal rules around late tax returns and late tax payments still matter.
So if 7 August passed without your first update being submitted, here is what to do next.
What should I do if I missed the 7 August MTD deadline?
- Check whether MTD actually applies to you. Confirm that you were required to join from April 2026 rather than assuming that every landlord or sole trader was included.
- Bring your digital records up to date. Make sure your self-employment or property income and expenses have been recorded correctly in compatible software from the start of the relevant period.
- Review and submit the outstanding quarterly update. Quarterly updates are summaries produced from your digital records; HMRC does not require you to make all of the accounting and tax adjustments that will eventually be needed for the tax return before submitting the quarterly update.
- Fix the bookkeeping process before November. Once the missed update has been dealt with, make sure your bank transactions, invoices, expenses and supporting records are being maintained regularly so the next deadline does not create the same problem.
Will I get a penalty for missing the August 2026 MTD deadline?
For the 2026/27 tax year, HMRC will not apply penalty points for late quarterly updates.
That first-year concession does not mean the update can be forgotten.
You still need to submit the required quarterly updates before you can submit your tax return. Penalty rules can also still apply to late tax returns and late payment of tax.
From tax years after 2026/27, HMRC's points-based system is due to apply to missed quarterly deadlines. Under the current rules, a taxpayer receives a point for a missed quarterly deadline and a £200 penalty is charged once the relevant four-point threshold is reached.
Were you actually required to use MTD from April 2026?
Making Tax Digital for Income Tax is being introduced in stages.
If the qualifying income shown by your 2024/25 tax return was more than £50,000, you generally need to use MTD for Income Tax from 6 April 2026, subject to the applicable rules and exemptions.
HMRC's current timetable then extends the regime to qualifying income of more than £30,000 from April 2027 and more than £20,000 from April 2028.
Qualifying income is based on your total turnover from self-employment and property before expenses, rather than simply the profit you make.
If you have more than one relevant source of income, they can therefore combine when determining your qualifying income. For example, someone with property income and sole-trader turnover may need to consider the total of both.
If you are unsure whether you were actually required to join MTD in April 2026, check that point before assuming you have missed an obligation.
What information is included in an MTD quarterly update?
A quarterly update is not another full tax return.
Your compatible software adds together the digital records for each relevant self-employment or property business and sends totals for the income and expense categories used during the period.
HMRC says you do not need to make accounting or tax adjustments before sending the quarterly update.
The aim is therefore to keep accurate digital records throughout the year rather than reconstructing everything immediately before a deadline.
What should you give your accountant if you are behind?
If your accountant is going to help bring the position up to date, getting the underlying records organised first can make the process much quicker.
That may include access to your bookkeeping software, complete bank transactions for the period, sales or rental-income records, invoices and receipts, details of expenses that have not yet been recorded and an explanation of any transactions you are unsure about.
If records are missing or incomplete, tell your accountant rather than guessing how a transaction should be treated.
The objective is not merely to make the overdue submission disappear. It is to establish reliable records that can support the remaining quarterly updates and the eventual tax return.
When is the next Making Tax Digital deadline?
For taxpayers using HMRC's standard update periods, the current deadlines are:
Standard update period | Submission deadline
6 April to 5 July | 7 August
6 April to 5 October | 7 November
6 April to 5 January | 7 February
6 April to 5 April | 7 May following the end of the tax year
HMRC's quarterly updates are cumulative: each update covers the period from the start of the tax year to the end of that update period.
That means the next key deadline after the first August submission is 7 November 2026.
If August was missed because your records were incomplete, fixing the bookkeeping process now is likely to be more useful than simply waiting until the November deadline approaches.
Why MTD is really a bookkeeping issue
The difficult part of Making Tax Digital is rarely pressing the final submit button.
The challenge is keeping the underlying records accurate throughout the year.
Income needs to be recorded, expenses categorised, missing transactions investigated and supporting records kept organised. For landlords with several properties or sole traders with a high volume of transactions, allowing that work to accumulate can quickly turn a quarterly update into a much larger job.
A consistent digital bookkeeping process should make the quarterly submission the end result of work you are already doing, rather than four separate emergency exercises each year.
Can an accountant submit your MTD updates for you?
An accountant or tax agent can help manage MTD obligations where the appropriate HMRC agent authorisation and compatible software arrangements are in place. HMRC's guidance for agents requires the relevant Agent Services Account and client authorisation for MTD for Income Tax.
If you already have an accountant, speak to them before submitting figures you are uncertain about.
Frequently asked questions
I missed the 7 August 2026 MTD deadline. Will HMRC fine me immediately?
No penalty points are being applied for late quarterly MTD updates during the 2026/27 tax year. You should still submit the outstanding update because the quarterly updates need to be completed before your tax return can be submitted.
Is an MTD quarterly update the same as a tax return?
No. HMRC describes quarterly updates as summaries of income and expense information created from your digital records. You still submit a tax return after the tax year.
When is the next MTD quarterly deadline?
For the standard update periods, the next deadline after 7 August 2026 is 7 November 2026.
Does the £50,000 threshold mean profit?
No. HMRC defines qualifying income using turnover from self-employment and property income before expenses, based on the relevant previous tax return.
Can property and self-employment income be combined?
Yes. Qualifying income is based on total relevant turnover from self-employment and property sources, so more than one source may contribute towards the threshold.
Need help getting MTD back on track?
If you have missed your first quarterly update, are unsure whether MTD applies to you, or your bookkeeping is not ready for the next deadline, dealing with the records now can prevent the problem from growing.
Dali & Co helps landlords, construction businesses and sole traders organise their bookkeeping, understand their reporting obligations and deal with HMRC requirements.
Talk to Dali & Co about getting your Making Tax Digital records and submissions back under control.
This article provides general information only and is based on HMRC guidance available on 11 August 2026. Tax treatment and reporting obligations depend on individual circumstances. Professional advice should be obtained where appropriate.