MTD for Income Tax: Your second quarterly update is due on 7 November
Making Tax Digital (MTD) for Income Tax has now been live for seven months, and the second quarterly deadline is almost here. If you're a sole trader or landlord with qualifying income over £50,000, your next update must reach HMRC by Saturday 7 November 2026.
Here's a practical reminder of what's due, a couple of things we're seeing come up, and what's coming next.
What's due on 7 November?
The second quarterly update is a cumulative, year-to-date summary rather than just the last three months. It covers:
Standard update periods: 6 April to 5 October 2026.
Calendar update periods: 1 April to 30 September 2026.
Your software works out the totals from your digital records and sends a summary to HMRC. HMRC doesn't see every invoice or receipt, just the totals by category.
What this means: If your bookkeeping is up to date, the submission itself should only take a few minutes. If it isn't, now is the time to catch up.
Has HMRC signed you up without asking?
Since September, HMRC has been enrolling some sole traders and landlords who hadn't signed up themselves, using the income shown on their 2024/25 tax return. If that's you, HMRC still expects digital records going back to 6 April and any missed updates to be sent as soon as possible.
Remember, the £50,000 test is based on your gross income (turnover and rents before expenses), not your profit. A tradesperson turning over £60,000 with £25,000 profit is still in scope.
What this means: If you've had a letter from HMRC, or you're not sure whether you're in, check your position now rather than waiting for January.
What if you miss the deadline?
HMRC has confirmed there are no penalty points for late quarterly updates during the 2026/27 tax year. That's a welcome grace period, but it isn't a reason to fall behind:
You still need to send all four quarterly updates before you can submit your 2026/27 tax return.
From 6 April 2027, each missed quarterly deadline will earn a penalty point, with a £200 penalty once you reach four points.
Late filing and late payment penalties for your tax return still apply as normal.
Quarterly updates don't replace your tax return
This one catches people out. Your 2025/26 Self Assessment return is still due by 31 January 2027, along with any tax you owe. The quarterly updates for 2026/27 feed into next year's return, not this one.
Who's next? The £30,000 threshold from April 2027
From 6 April 2027, MTD for Income Tax extends to sole traders and landlords with qualifying income over £30,000, based on their 2025/26 tax return. If you're in that group, the next few months are the ideal time to move onto compatible software and get used to keeping digital records.
Our tips for a smooth submission
Reconcile your bank feeds before you submit, so your totals are accurate.
Capture receipts as you go with an app like Dext, rather than saving them up.
Keep business and personal spending in separate accounts.
Put the remaining 2026/27 deadlines in your diary: 7 February and 7 May 2027.
At BlueFox Accounting, we help sole traders and landlords get set up on MTD-compatible software, keep their records in order and submit their quarterly updates on time. If you're unsure whether MTD applies to you, or you'd like us to take it off your plate, get in touch.