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Short answer: If you are in Making Tax Digital for Income Tax in 2026/27, you send four cumulative quarterly updates to HMRC: by 7 August 2026, 7 November 2026, 7 February 2027 and 7 May 2027. You then finish the year with a final declaration by 31 January 2028.
Making Tax Digital for Income Tax (MTD for ITSA) started on 6 April 2026. If your qualifying income is over £50,000, you now keep digital records and report to HMRC every quarter instead of once a year. This guide sets out the exact dates, what each update contains and what happens if you miss one. For the wider picture, see our explainer on Making Tax Digital for Income Tax.
Who has to send quarterly updates in 2026/27?
You must use MTD for Income Tax from 6 April 2026 if your total annual income from self-employment and property is over £50,000. HMRC measures this using the figures on your 2024/25 tax return, and it counts income before expenses. The threshold then falls to £30,000 from April 2027 and £20,000 from April 2028. You can also join voluntarily if you are below the limit. To sign up you must be registered for Self Assessment and have filed a return in the last two years.
If you are a landlord rather than a sole trader, the same rules apply to your rental income. Our guide to MTD software for landlords covers that side in more detail.
The four quarterly update deadlines
Most people use standard update periods, which follow the tax year from 6 April to 5 April.
| Update period | Deadline |
|---|---|
| 6 April to 5 July | 7 August 2026 |
| 6 April to 5 October | 7 November 2026 |
| 6 April to 5 January | 7 February 2027 |
| 6 April to 5 April | 7 May 2027 |
Each update is cumulative. It covers everything from 6 April to the end of that period, not just the latest three months.
Calendar quarters: an alternative
You can choose calendar update periods instead (1 April to 30 June, 30 September, 31 December and 31 March). The deadlines stay the same. HMRC says to use them if your accounting year runs from 1 April to 31 March. Software usually defaults to standard periods, so you must switch before sending your first update, and you cannot change it for the rest of the tax year once you have sent one.
What goes into a quarterly update?
- Totals of your income and expenses, grouped by category, for each business or property.
- No individual invoices or receipts. HMRC does not receive those.
- No accounting adjustments at this stage. You make those after the fourth update.
If you had no income or expenses in a period you still have to send an update. Your software must be MTD-compatible. We compare options in best MTD software for sole traders.
After the fourth update: the final declaration
Once your last quarterly update is in, you check whether any adjustments are needed (for example, resending the fourth update to correct records or add Rent a Room income). You then confirm your figures and your other income in your final declaration, which replaces the old Self Assessment return. The deadline is 31 January after the tax year ends, so 31 January 2028 for 2026/27. Any tax is still due by that date, and payments on account continue to apply.
Penalties for late updates and late payment
HMRC uses a points system. You get one point for each missed deadline, and a £200 penalty once you reach four points. For 2026/27 specifically, HMRC applies no penalty points to missed quarterly updates, and the points system for updates starts with 2027/28. Points below the threshold expire after 24 months.
Late payment penalties are separate. For 2026/27, there is no penalty up to 15 days late, 3% of the unpaid tax from day 16, a further 3% from day 31, then 10% a year on the balance. In your first year of the new regime you get 30 days before the first charge. Interest runs from day one. If you cannot pay, contact HMRC before the deadline to arrange a payment plan. Compare this with the older rules in Self Assessment late filing penalties.
A practical routine that avoids missed deadlines
- Record every sale and expense in your software as it happens, or at least monthly.
- Diary 1 August, 1 November, 1 February and 1 May to review the figures.
- Submit each update a few days early, not on the 7th.
- Keep a note of your update periods once chosen.
Not sure whether you are in scope yet? Use our tax calculators and read Self Assessment deadlines to see how the old and new timetables fit together.
Common mistakes with quarterly updates
- Sending only the latest quarter. Updates are cumulative, so each one must include the totals from 6 April onwards. Sending three months of figures by mistake understates your income.
- Waiting until the deadline day. Software outages and sign-in problems are common close to the 7th. Submit a few days early.
- Mixing personal and business spending. If your bank feed contains both, categorise carefully or you will report the wrong expenses.
- Forgetting a second income source. If you have both a trade and rental property, each is reported separately within the same software.
- Switching software mid-year without exporting records. Keep a full digital record so the cumulative totals still tie up.
Landlords and quarterly updates
If you let property, your rental income counts towards the £50,000 threshold alongside any self-employment income. You send property income and expenses as a separate business in each update. Property owned jointly is reported on each owner’s own account, using their share. If you let a room under Rent a Room relief, the income is recorded when you finalise the year, which is why you may need to resend the fourth update. For rental figures in detail, see how to declare rental income.
Joining early or voluntarily
You do not have to wait for your deadline year. You can sign up voluntarily for the current or next tax year if you are registered for Self Assessment and have filed a return in the last two years. The advantage is practice: a year of smaller, regular updates before the mandatory start date means the first compulsory year feels routine. The disadvantage is that you take on the quarterly workload earlier than the law requires. If your income is close to the next threshold, joining early can be sensible.
Who may be excused from MTD?
HMRC allows exemptions for people who cannot use digital tools because of disability, age, remote location or other circumstances. An exemption has to be applied for and agreed, it is not automatic, and you should keep a copy of the decision. Being unfamiliar with computers on its own is not a reason, so most people simply choose software that suits them.
How to get ready: a five-step plan
- Work out your qualifying income from the last full tax year, before expenses, across self-employment and property.
- Choose MTD-compatible software and connect your bank feed. Our comparison of MTD software is a starting point.
- Sign up to MTD for Income Tax in your HMRC account, or ask your accountant to do it as your agent.
- Choose standard or calendar update periods before you send your first update.
- Put the four deadline dates in your diary, plus the 31 January final declaration.
Can an accountant send the updates for you?
Yes. An authorised agent can sign up for MTD and submit quarterly updates and the final declaration on your behalf, as long as you keep your records up to date or give them access to your bookkeeping software. This is often the simplest option for sole traders who would rather not log in four times a year. We can handle the whole process for a fixed fee. See our self-employed tax return service or get a quote.
Frequently asked questions
When is the next MTD quarterly update deadline?
For standard update periods the next deadlines are 7 November 2026 (covering 6 April to 5 October 2026), then 7 February 2027 and 7 May 2027.
Do I still need to file a Self Assessment tax return if I am in MTD?
No. After your quarterly updates you submit a final declaration instead, by 31 January after the tax year ends. It plays the same role as the return.
Do I get a penalty for missing a 2026/27 quarterly update?
HMRC does not apply penalty points to missed quarterly updates for 2026/27. The points system for quarterly updates starts with the 2027/28 tax year, but late payment penalties and interest still apply.
What if my income is under £50,000?
You are not required to join from April 2026. The limit falls to £30,000 in April 2027 and £20,000 in April 2028, and you can join voluntarily earlier.
Are quarterly updates cumulative?
Yes. Each update covers the period from 6 April up to the end of that quarter, so the totals build through the year.
Want an accountant to do it for you?
Our qualified accountants prepare and file your return for a fixed fee, agreed before we start. Get a free quote, see our prices or call 0203 4411 258.
Last reviewed 28 October 2026. This guide is general information for UK taxpayers and is not personal tax advice. Scottish income tax rates differ from those shown.
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Reviewed and kept up to date by our expert team of ICAEW, ACCA and AAT qualified accountants. Last updated . This page is general guidance, not personal advice.
