If you're in the first wave of Making Tax Digital for Income Tax — sole traders and landlords with combined gross income over £50,000 shown on your 2024/25 tax return — your second quarterly recording period is nearly complete. It covers 6 July to 5 October 2026, and the update is due to HMRC by 7 November 2026.
Here is a practical action plan to get there without a last-minute scramble. If you missed the first update (6 April to 5 July, due 7 August 2026), it is covered below too.
Your second MTD quarterly update is due 7 November 2026 — one month after the end of the 6 July to 5 October recording period. Two more quarterly deadlines follow: 7 February 2027 and 7 May 2027.
Missed the first update?
The first quarterly update (6 April to 5 July 2026) was due on 7 August 2026. If you have not sent it, do it now. HMRC has confirmed it will not issue penalty points for late quarterly updates during 2026/27, but that is a temporary easement, not a waiver: every quarterly update must still be submitted before you file your final declaration, and late payment and late final declaration penalties are not covered by it.
Step 1: Confirm you're in scope
You're required to follow MTD for Income Tax for the 2026/27 tax year if your total gross income from self-employment and/or property (combined, before expenses) was over £50,000 in the 2024/25 tax year, as reported on your Self Assessment return. HMRC should have written to you, but it is worth checking directly via your HMRC online account if you are unsure — agents can also check this on your behalf.
Get your digital records up to date now
MTD requires digital record-keeping using compatible software — Xero, QuickBooks, FreeAgent, or similar. Every transaction from 6 April 2026 onward needs to be recorded digitally, categorised by income and expense type.
If you have fallen behind, don't try to catch up on three months of records in one sitting the week before the deadline. Set aside a few hours now to get current, then build a weekly or fortnightly habit of entering transactions as they happen.
Reconcile and categorise everything for the period
Once 5 October has passed, every transaction between 6 July and 5 October needs to be reconciled against your bank statement and assigned to the correct category — the categories broadly mirror the income and expense boxes on the Self Assessment property and self-employment pages.
Pay particular attention to: mixed personal/business transactions, mileage and motor expenses, home office costs, and any cash transactions that haven't been recorded yet.
Submit through MTD-compatible software
The quarterly update itself is a simple submission — total income and total expenses by category for the period, sent directly from your software to HMRC. It is not a tax calculation and does not require you to estimate your tax bill at this stage. Your final tax position is settled once, through the final declaration after the tax year ends.
What stays the same
It's worth being clear about what MTD for Income Tax does not change. Your Self Assessment deadline for the 2025/26 return is still 31 January 2027. Your tax payment deadlines (31 January and, where applicable, 31 July for payments on account) are unchanged. The quarterly updates are about keeping HMRC informed of your running totals — they don't trigger a tax payment or a final tax calculation on their own.
What happens if you miss a deadline
During 2026/27, HMRC will not issue penalty points for late quarterly updates. From 2027/28, a points-based system applies: each missed quarterly update adds a point, and once you reach four points a £200 fixed penalty applies, with further penalties for each additional late update. Building the on-time habit from this quarter makes the change painless.
Quick reference: your 2026/27 quarterly deadlines
| Period covered | Submission deadline |
|---|---|
| 6 April 2026 – 5 July 2026 | 7 August 2026 (passed — submit now if you missed it) |
| 6 July 2026 – 5 October 2026 | 7 November 2026 |
| 6 October 2026 – 5 January 2027 | 7 February 2027 |
| 6 January 2027 – 5 April 2027 | 7 May 2027 |
For the full picture — who is in scope in 2027 and 2028, software, and how agents fit in — see our complete guide to Making Tax Digital and the guide to MTD for Income Tax deadlines and penalties.
Need help getting MTD-ready before 7 November?
I can review your current records, set up digital bookkeeping, and handle your quarterly submissions going forward. Book a free 30-minute call to get started.