Missed Your First Making Tax Digital Update? Don’t Panic!
Making Tax Digital for Income Tax started on 6 April 2026 for many self-employed people and landlords.
The first quarterly update was due by 7 August 2026. If you missed this date, you should submit the update as soon as possible. The good news is that HMRC will not issue penalty points for late quarterly updates during the 2026/27 tax year.
Who must use Making Tax Digital?
You should have started using Making Tax Digital from 6 April 2026 if:
- You are registered for Self Assessment.
- You receive income from self-employment, property or both.
- Your total qualifying income was more than £50,000 in the 2024/25 tax year.
Qualifying income is your gross income before expenses and tax allowances are deducted.
The income threshold will fall to:
- More than £30,000 from 6 April 2027.
- More than £20,000 from 6 April 2028.
Check when you must start using Making Tax Digital
What if you missed the first update?
You should still submit it using software which works with Making Tax Digital.
There are no penalty points for missing a quarterly update deadline during the 2026/27 tax year. However, you must submit all required quarterly updates before you can complete your end-of-year tax return.
The remaining quarterly deadlines for 2026/27 are:
- 7 November 2026
- 7 February 2027
- 7 May 2027
Your usual Self-Assessment filing and payment deadlines continue to apply. You could still face penalties if your tax return is late or you do not pay your tax bill on time.
Penalties will begin from April 2027
From 6 April 2027, late quarterly updates will normally result in penalty points. Once you reach four points, HMRC can issue a £200 penalty. Further missed deadlines may lead to more £200 penalties.
This makes it important to put suitable software and record-keeping arrangements in place now. Read about the penalty system
HMRC will begin signing people up
From September 2026, HMRC will start signing up people who should already be using Making Tax Digital but have not registered themselves. This will happen in stages over several months.
You should not wait for HMRC to act. It remains your responsibility to check whether the rules apply to you and to keep the required digital records. HMRC announcement
What should you do now?
If you believe Making Tax Digital applies to you:
- Check when you are required to join.
- Choose compatible accounting software.
- Sign up with HMRC if you have not already done so.
- Submit any outstanding quarterly updates.
- Speak to your accountant or tax adviser if you need help.
Some people may qualify for an exemption, including those who are unable to use digital services because of their age, disability, location or another reasonable cause.
The first year offers some breathing space, but the reporting duties still apply. Acting now will help you avoid a last-minute rush and reduce the risk of penalties from April 2027.
This article provides general information and should not be treated as personal tax advice. Tax rules can change, and you should seek professional advice where needed.
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