Making Tax Digital for Income Tax is now a reality for many self-employed people and landlords.
Those brought into MTD from 6 April 2026 are required to keep digital records and use compatible software to send quarterly updates to HMRC. For those following the standard quarterly periods, the first update covered the period from 6 April to 5 July 2026 and was due by 7 August 2026.
If you were required to make an update and missed the deadline, the important thing is not to ignore it.
First, check whether MTD applies to you
Not every self-employed person or landlord is required to use MTD yet.
Broadly, you are within MTD for Income Tax from April 2026 if your qualifying gross income from self-employment and property exceeded £50,000 in the relevant tax year used to determine your start date. The threshold is due to fall to £30,000 from April 2027.
There are also exemptions in certain circumstances.
If you are unsure whether you should have made a quarterly update, check your position before assuming that you have missed a filing obligation.
Get your records up to date
If MTD does apply, the next priority is to make sure your digital records are complete.
The quarterly update is based on the income and expense information recorded in your compatible software. If bookkeeping has fallen behind, bringing those records up to date should usually be the first step.
Do not be tempted simply to wait until the next quarterly deadline. This could leave you trying to correct several months of records at the same time and increases the possibility of errors.
The second standard quarterly update is due by 7 November 2026, so getting back on track now will make the next submission considerably easier.
What about penalties?
MTD for Income Tax uses a points-based penalty system for late submissions. Broadly, a late submission can result in a penalty point, rather than an immediate financial penalty. Once the relevant points threshold is reached, a £200 financial penalty can become payable.
This makes it particularly important not to allow one missed deadline to turn into a pattern of late submissions.
Different rules apply to late payment of tax, so filing and payment obligations should not be confused.
Speak to us if you are uncertain
MTD represents a significant change in the way many taxpayers report their business and property information to HMRC. Some problems during the early stages are inevitable.
If you believe you should have submitted a quarterly update by 7 August, or you are unsure whether MTD applies to you, speak to us. We can help establish your position, check your records and make sure you are ready for the next deadline.