Making Tax Digital quarterly updates: what to do after 7 August

The first Making Tax Digital for Income Tax quarterly deadline passed on 7 August 2026. If your update is overdue, you still need to send it. HMRC will not apply penalty points for late quarterly updates during the 2026 to 2027 tax year, and the next update is due by 7 November 2026.¹

This guide explains the current position, the records you need and how to prepare for the next deadline. It provides general information. Use HMRC's official guidance or speak to a tax adviser if you are unsure about your circumstances.

If you missed the first Making Tax Digital quarterly update

Start by checking your compatible software and HMRC online services account for the outstanding update. Bring the relevant digital records up to date, review the totals created by your software and send the update when the records are ready.

HMRC's first-year treatment is specific. It will not apply penalty points for late quarterly updates in the 2026 to 2027 tax year. The requirement to keep digital records and send quarterly updates still applies, and you must send the updates before you can submit your annual tax return.¹

The annual Self Assessment return and payment obligations remain separate. Penalty points can still apply to a late tax return, while late payment penalties and interest depend on the payment position and the rules in force.²

If a software problem prevented submission, contact the software provider and keep a clear record of the issue. Ask a tax adviser about any accounting judgement or uncertainty in the underlying records.

The next Making Tax Digital deadline is 7 November 2026

For standard update periods, the second quarterly update covers 6 April to 5 October 2026. Calendar update periods cover 1 April to 30 September. Both are due by 7 November 2026.¹

Each update is cumulative. The second update includes the records from the start of the tax year to the end of the second update period. Corrections made to earlier digital records will therefore feed into the next cumulative totals.¹

The remaining quarterly deadlines for the 2026 to 2027 tax year are:

• 7 November 2026;
• 7 February 2027; and
• 7 May 2027.

Your software will show when an update is available to send. HMRC says you can usually send it from the end of the update period until the deadline. You can send an update up to ten days before the period ends when you do not expect to record any more transactions in that period.¹

Check whether Making Tax Digital applies to you

The first mandatory group began using Making Tax Digital for Income Tax on 6 April 2026. It covers sole traders and landlords whose qualifying income was more than £50,000 on their 2024 to 2025 Self Assessment return. Qualifying income is the gross income from self-employment and property before expenses.³

The introduction continues in stages:

• qualifying income over £30,000 in the 2025 to 2026 tax year means a start date of 6 April 2027; and
• qualifying income over £20,000 in the 2026 to 2027 tax year means a start date of 6 April 2028.

HMRC's online checker can help you confirm when you need to start and whether an exemption may apply. Partnerships have a future timetable that HMRC has yet to set out. Limited companies are outside Making Tax Digital for Income Tax.

What a quarterly update contains

A quarterly update is a summary of the income and expense totals held in your digital records. Compatible software adds the records together for each self-employment and property business and sends the totals to HMRC. You do not need to make accounting or tax adjustments before sending the update.¹

HMRC does not receive each individual invoice, receipt or transaction record through the quarterly update. You still need to keep the original records and supporting documents required for Self Assessment, including relevant invoices and bank statements.⁴

Each business needs its own digital records and quarterly update. If you have two sole-trader businesses, your software needs to keep and report them separately. You must also send an update when a business had no income or expenses during the latest period.¹

Prepare your records for the next quarterly update

Use the weeks before 7 November to create a routine you can repeat. Confirm that you have signed up, authorised your software to communicate with HMRC and selected the correct update periods. Calendar periods can simplify record-keeping when your accounting period runs from 1 April to 31 March, but you need to choose them in your software before sending your first update.⁴

Keep digital records as close as practical to each transaction. HMRC requires digital records for self-employment and property income and expenses, while the supporting documents still need to be retained. If you joined during the tax year, you need to catch up from the start of the relevant tax year.⁴

Reconcile the money received with the records that explain it. Compare completed sales and invoices with payment-provider data, bank entries and the accounting record. Our guide to payment reconciliation for small businesses provides a repeatable process for spotting duplicates, missing entries and timing differences.

Payment records can show when money was requested, authorised, confirmed by a provider or credited to the bank. Those stages have different meanings, as our guide to how Pay by Bank payments work explains. They also do not determine the tax treatment of the transaction. Your accounting records and professional advice should supply the correct income or expense treatment.

If you connect payments to accounting software, check what information moves between the systems and which records still need attention. See how Wonderful connects Pay by Bank payments with Xero, then confirm that your chosen tax software supports Making Tax Digital for Income Tax. HMRC maintains a current compatible software finder.⁵

Self Assessment remains part of the process

Quarterly updates do not replace the annual tax return. They provide in-year summaries from the digital records. After the end of the tax year, you will still need to finalise the records, make any required tax adjustments, add other income and submit the return through compatible software.

For the 2026 to 2027 tax year, the deadline to submit the tax return and pay any tax due is 31 January 2028. The quarterly updates must be complete before you can submit that return.²

The practical priority is to bring any overdue update under control and build a reliable process for 7 November. Accurate digital records, regular reconciliation and clear supporting documents will make each cumulative update easier to review.

Making Tax Digital quarterly update FAQs

Will I get a penalty for missing the 7 August 2026 deadline?

HMRC will not apply penalty points for late quarterly updates during the 2026 to 2027 tax year. You still need to send the update before you can submit the annual tax return. Late tax return and payment rules remain separate.¹

When is the next Making Tax Digital quarterly update due?

The next deadline is 7 November 2026. The standard update covers 6 April to 5 October, while a calendar update covers 1 April to 30 September.¹

Does a quarterly update replace my tax return?

No. You will still need to finalise your records, make any required adjustments and submit the annual tax return through compatible software.

Footnotes

1. HM Revenue & Customs, quarterly update contents, periods, deadlines and first-year penalty treatment. Send quarterly updates.
2. HM Revenue & Customs, tax return, quarterly update and payment penalty rules. Penalties for Making Tax Digital for Income Tax.
3. HM Revenue & Customs, qualifying income, thresholds and start dates. Find out if and when you need to use Making Tax Digital for Income Tax.
4. HM Revenue & Customs, digital record requirements, calendar periods and catching up. Create digital records.
5. HM Revenue & Customs, recognised compatible software. Find software that works with Making Tax Digital for Income Tax.