Missed the First Making Tax Digital Deadline? What to Do Next.

This was the first quarterly filing deadline under the mandatory Making Tax Digital for Income Tax system. Therefore, it is understandable that some sole traders and landlords may have missed it, assumed their accountant had dealt with it or remained unsure whether the new rules applied to them.

There is some reassurance. HMRC has confirmed that it will not issue penalty points for late quarterly updates in the 2026 to 2027 tax year. However, that does not remove the underlying reporting requirement. You should still take action now instead of allowing one missed update to create problems later in the year.

If you were preparing for the deadline but did not complete the process, our earlier guide explains who was affected by the first Making Tax Digital deadline and what had to be submitted.

Who had to meet the 7 August deadline?

Making Tax Digital for Income Tax became mandatory from 6 April 2026 for individual sole traders and landlords whose total qualifying income from self-employment and property was more than £50,000.

For the first mandatory year, HMRC generally used the qualifying income shown on the taxpayer’s 2024 to 2025 Self Assessment return. Qualifying income means gross income before expenses from self-employment and property combined. It does not mean taxable profit.

HMRC should have written to people it identified as being within the rules. Nevertheless, not receiving a letter does not automatically mean that MTD does not apply. HMRC states that taxpayers remain responsible for checking whether and when they need to use Making Tax Digital for Income Tax.

What exactly was due?

The first quarterly update covered the opening three months of the 2026 to 2027 tax year. For most taxpayers, that was the period from 6 April to 5 July 2026. Those using calendar-quarter reporting covered 1 April to 30 June instead. In both cases, the submission deadline was 7 August 2026.

A quarterly update is a summary of income and expenses created from your digital records. It is not a full tax return, and it does not require every tax or accounting adjustment that may eventually appear in your year-end figures.

You can read HMRC’s guidance on sending quarterly updates and creating the required digital records.

Will you receive a penalty for missing it?

HMRC has confirmed that there are no penalties for missing an MTD quarterly update deadline during the 2026 to 2027 tax year. Consequently, someone who was mandated from April 2026 should not receive a late-submission penalty point solely because their first quarterly update was late.

This is a first-year concession for quarterly updates. It does not cancel the obligation, and it does not protect you from penalties connected with a late tax return or a tax bill paid after its normal due date. HMRC’s current position is set out in its MTD for Income Tax penalties guidance.

What should you do after missing the MTD deadline?

1. Confirm whether MTD applies to you

   Check your gross self-employment and property income from the relevant return. If the combined figure was more than £50,000, you may have been required to start from 6 April 2026. Do not use profit after expenses for this test.

2. Check that you are signed up

   Being registered for Self Assessment does not, by itself, complete the MTD sign-up process. If you have not joined, use HMRC’s MTD for Income Tax sign-up guidance or speak to your accountant about completing the process.

3. Confirm that your software is compatible

   You need software that can maintain or connect to your digital records and send the quarterly update to HMRC. Check the product and the income sources it supports against HMRC’s guidance on choosing compatible MTD software.

4. Bring the first quarter’s records up to date

   Record the relevant income and expenses for each affected sole-trader business or property business. Reconcile obvious gaps, such as missing sales, rental income or business costs, so the quarterly summary reflects the digital records you hold.

5. Submit the missing update

   Once the records and software are ready, send the outstanding quarterly update. You should not wait until the next quarterly deadline and assume the missing period will disappear.

6. Build a routine for the next quarter

   Set a regular bookkeeping schedule, decide who will review the records and leave time for software or authorisation problems. Consistent records are much easier to manage than a rushed catch-up every three months.

The next MTD quarterly deadlines.

HMRC lists four standard quarterly update deadlines for the 2026 to 2027 tax year. The first has passed, but the remaining dates should already be in your diary.

Quarterly updates do not replace the need to finalise your overall tax position. Your tax return and payment responsibilities continue, including any relevant Self Assessment payments on account.

How to make the second quarter easier.

The quickest way to avoid another late update is to turn MTD into part of your normal bookkeeping process. That means maintaining records throughout the quarter instead of recreating three months of activity just before the deadline.

• Record income and expenses regularly.
• Keep business and personal transactions clearly separated.
• Check that every affected income source is included.
• Review bank feeds and unreconciled items before quarter-end.
• Confirm who is responsible for submitting the update.
• Keep the next deadline visible in your calendar.

MTD also creates a more regular flow of financial information. That can be useful for forecasting, tax planning and understanding how the business is performing. We have considered the wider direction of travel in our article on the link between digital records and more frequent tax reporting.

What if you cannot use digital systems?

Some taxpayers may qualify for an exemption because they are digitally excluded. HMRC considers applications individually. Simply being unfamiliar with software, having relatively few records or facing additional cost is not automatically enough.

If you believe digital exclusion applies to you, review HMRC’s MTD exemption guidance. Do not assume that an application has been accepted until HMRC confirms the position.

Landlords who need more specialist guidance can also read Property Tax Advice’s current overview of the key tax changes affecting property investors from April 2026.

Final thoughts.

Missing the first MTD quarterly deadline is not something to ignore, but it is recoverable. The first step is to confirm whether you were within the mandatory rules. Then make sure the sign-up, software, digital records and submission are all brought into line.

Once the first update is resolved, focus on the next deadline rather than repeating the same last-minute exercise. A clear bookkeeping routine now should reduce pressure throughout the rest of the tax year.

Frequently asked questions.

Information checked: 11 August 2026. Tax rules and HMRC guidance can change. This article provides general information and does not replace advice based on your circumstances. Explore more practical tax and accounting guidance in the RiverView Portfolio news centre or visit our accounting and tax video library.