360 Accounts & Bookkeeping Ltd

    Making Tax Digital, your second quarterly update is due by 7th November 2026

    ComplianceUpdated 14 October 2026

    Making Tax Digital, your second quarterly update is due by 7th November 2026

    Overview

    The second Making Tax Digital (MTD) for Income Tax quarterly update for 2026/27 is due by 7th November 2026. If you use standard update periods, it covers income and expenses cumulatively from 6th April to 5th October 2026, not just the latest three months. If you selected calendar update periods, it covers 1st April to 30th September 2026. The deadline is the same for both.

    For 2026/27, mandatory MTD generally applies to sole traders and landlords whose qualifying income exceeded £50,000 in 2024/25, subject to eligibility and exemptions. HMRC will not apply penalty points for late quarterly updates for 2026/27, but the reporting and digital-record requirements still apply. This relaxation does not extend to late annual tax returns or late tax payments.

    Detailed Content

    Who needs to submit?

    If you are required to use MTD for Income Tax, you must send quarterly updates for each self-employment and property business you have. People using MTD voluntarily also send updates, but different penalty rules apply to volunteers.

    Qualifying income is generally your combined gross self-employment and property income before expenses, not your profit or total personal income. Employment income, dividends and pensions do not count towards this threshold. Special rules can apply, including for jointly owned property and short accounting periods.

    The mandatory starting dates are:

    6th April 2026 - (Over £50,000 in 2024/25)

    6th April 2027- (Over £30,000 in 2025/26)

    6th April 2028 -(Over £20,000 in 2026/27)

    Check eligibility and exemptions rather than relying only on current turnover. Not receiving an HMRC letter does not remove your responsibility to check whether you must use MTD.

    What does the second update contain?

    Quarterly updates are cumulative summaries of recorded self-employment and property income and expenses. Your software adds together the relevant digital records for you to check before submitting. HMRC does not receive each individual invoice or receipt through the quarterly update.

    For standard periods, the latest three-month bookkeeping period is 6th July to 5th October, but the second submission includes the figures from 6th April onwards. For calendar periods, the second submission includes figures from 1st April to 30th September.

    You do not normally need to make accounting or tax adjustments before sending an update. There are specific reporting options for jointly let property, so check how these apply if relevant. You must still send an update if there has been no income or expenditure in the latest period.

    A quarterly update is not your annual tax return and does not itself create a quarterly tax-payment deadline. After submitting, you can obtain an estimated tax bill, but this is not the final liability and may be incomplete if other income or adjustments are missing.

    What software is needed?

    You or your adviser must use software compatible with MTD for Income Tax. Check the particular product, subscription and features, rather than assuming that any package from a familiar provider will work. Software compatible with MTD for VAT is not automatically suitable for Income Tax.

    Spreadsheets can be used with suitable bridging software where the arrangement meets HMRC's requirements. Quarterly updates cannot be submitted directly through your Personal Tax Account.

    Deadlines for 2026/27

    First - 6th April to 5th July 2026- 1st April to 30th June 2026- 7th August 2026

    Second - 6th April to 5th October 2026 - 1st April to 30th September 2026 -7th November 2026

    Third - 6th April 2026 to 5th January 2027 - 1st April to 31st December 2026 - 7th February 2027

    Fourth - 6th April 2026 to 5th April 2027 - 1st April 2026 to 31st March 2027 - 7th May 2027

    After the year ends, complete any necessary corrections and tax adjustments, add other reportable income, and submit your 2026/27 annual tax return through compatible software by 31st January 2028. Your separate 2025/26 Self Assessment return remains due under the usual rules, normally by 31st January 2027 if filed online.

    Penalties and the first-year relaxation

    HMRC will not apply penalty points for late quarterly updates relating to 2026/27. However, you must send the required updates before you can submit your annual tax return. Late annual returns can still attract penalty points, and late-payment penalties and interest are separate.

    For mandatory MTD users, late quarterly-update points apply for tax years after 2026/27. A missed quarterly-update or annual-return deadline can generate a point. Reaching the four-point threshold triggers a £200 penalty, with another £200 for each further missed submission deadline while at the threshold. Only one point can arise per deadline, even if updates for more than one business are late. Reasonable-excuse appeals and rules for removing points may apply. Volunteers have different rules.

    Step By Step Procedure

    1. Confirm your obligations. Check your qualifying income for the relevant reference year, any exemption, your MTD registration and each business requiring updates.

    2. Check your software. Confirm Income Tax compatibility, HMRC authorisation, registered income sources and whether you use standard or calendar periods. Do not change period type mid-year after sending an update.

    3. Bring your records up to date. Record and reconcile income and expenses through 5th October for standard periods, or 30th September for calendar periods. Check the cumulative figures from the start of the reporting year, including corrections to earlier records.

    4. Review and submit. Send the second update for each relevant business by 7th November 2026. Do not wait until the deadline if your figures are ready.

    5. Keep confirmation and address omissions. Retain HMRC acceptance evidence. If the first update was missed, contact your adviser and resolve the outstanding submission requirements rather than assuming the second update automatically clears them.

    6. Plan ahead. Diary the remaining quarterly deadlines, your annual return and any separate tax-payment obligations.

    Frequently Asked Questions

    When is the second MTD deadline?

    7th November 2026. The standard update covers 6th April to 5th October cumulatively. A calendar update covers 1st April to 30th September.

    What if I missed the first deadline?

    HMRC will not apply quarterly-update penalty points for 2026/27, but the update obligations remain. Speak to your adviser and submit outstanding updates as required before the annual return. The first-year relaxation is not permission to stop keeping digital records.

    Do I pay tax when I submit an update?

    No payment is required simply because you send an update. Existing tax-payment deadlines, including payments on account where applicable, remain separate. Any estimate shown after submission is not your final bill.

    Do quarterly updates replace the annual return?

    No. You still need to complete the year-end process and submit an annual tax return through compatible software. For 2026/27, the deadline is 31st January 2028.

    Will MTD apply to me in future?

    Generally, qualifying income over £30,000 in 2025/26 brings you into MTD from 6th April 2027, and over £20,000 in 2026/27 from 6th April 2028, subject to eligibility and exemptions. These tests concern qualifying gross income, not simply your current profit or salary.

    Can 360 Accounts & Bookkeeping help?

    We can help you check your obligations, organise digital records, choose suitable software and prepare quarterly updates. Contact us before the deadline so we can agree what support you need.

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