HM Revenue and Customs is urging hundreds of thousands of Britons earning more than £50,000 to submit their second Making Tax Digital (MTD) quarterly update after the deadline passed. The second quarterly update deadline for MTD for Income Tax was Saturday, November 7, 2026, and HMRC is now asking anyone who missed it to file immediately.
As of April this year, people with a combined gross income above that level from sole trades and property in the 2024/25 tax year are subject to new rules requiring them to file updates on their income and expenses online. HMRC first introduced its MTD scheme for all VAT-registered businesses in 2022 as part of a phased transition to an all-digital service, and is now beginning to include individual taxpayers.
HMRC's 'Act now' warning
In a post on X, the UK tax authority wrote: "Missed the Making Tax Digital quarterly update deadline? If your combined turnover from self-employment and property was over £50,000 in the 24/25 tax year, you need to send your second quarterly update. Act now."
After November 7, the other important dates for people in the £50k bracket include January 31, 2027, the deadline to submit a Self Assessment tax return the usual way for 2025 to 2026, and February 7, 2027, the deadline to send the third quarterly update. Further deadlines include May 7, 2027, for the fourth quarterly update, August 7, 2027, for the first quarterly update for 2027 to 2028, and November 7, 2027, for the second quarterly update. For 2026 to 2027, the deadline to submit a tax return straight from MTD for Income Tax software is January 31, 2028, followed by February 7, 2028, for the third quarterly update and May 7, 2028, for the fourth quarterly update.
Exemptions and penalties
There are a range of exemptions, some of which are automatic and others that require an application. HMRC says there are no penalties for missing a quarterly update deadline for the 2026 to 2027 tax year due to a grace period put in place as people adapt to the new rules. However, fines will be issued for failing to keep records, and existing penalties for late filing of tax returns or for late payment still apply.
It marks stage one of the three-phase Making Tax Digital for Income Tax programme HMRC is bringing into effect across the next three tax years, the Chartered Institute of Taxation (CIOT) explains. Sole traders and landlords with a qualifying income of over £30,000 for the 2025 to 2026 tax year will need to start using the system from April 6, 2027. Those with over £20,000 of qualifying income for the 2026 to 2027 tax year will need to switch to the new reporting rules from April 6, 2028. Official guidance and eligibility rules are available on the UK Government website.
