From 6 April 2026, sole traders and landlords with qualifying income over £50,000 must use Making Tax Digital for Income Tax. The new task is the quarterly update. This guide explains exactly what you send, when, and what happens if you are late.
Written and reviewed by James Whitfield · Updated October 2026 · Checked against 2026/27 HMRC rates · Editorial standards · Methodology
A quarterly update is a summary of your business income and expenses for the tax year so far, sent to HMRC from MTD-compatible software.1 For 2026/27 the deadlines are 7 August 2026, 7 November 2026, 7 February 2027 and 7 May 2027.1 No tax is paid with them: Self Assessment payments stay on 31 January and 31 July. HMRC will not give penalty points for late 2026/27 quarterly updates, but you must send all four before you can file the return.1
Related: Making Tax Digital for sole traders · Bookkeeping for sole traders · Quarterly tax calculator
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By default your quarters follow the tax year. If your accounts run to 31 March, you can choose calendar quarters instead. Pick the option in your software before the first update; you cannot switch for the rest of the tax year once one is sent.1
| Update 1: 6 April to 5 July 2026 | 7 August 2026 |
| Update 2: 6 April to 5 October 2026 | 7 November 2026 |
| Update 3: 6 April 2026 to 5 January 2027 | 7 February 2027 |
| Update 4: 6 April 2026 to 5 April 2027 | 7 May 2027 |
| Tax return (final declaration) and payment | 31 January 2028 |
Totals, not receipts. Your software adds up the income and expenses in your digital records for the tax year so far, split into HMRC's categories (for example cost of goods, travel, premises, phone and office), and sends those figures. You do not make accounting adjustments, claim capital allowances or work out tax at this stage.1
Each update covers the whole year to date, so update 2 includes everything from 6 April to 5 October. If you spot a mistake from an earlier quarter, correct it in your records and the next update carries the corrected total.1
Landlords send a separate set of totals for property income. If you have two trades, each one has its own update.
1. Check HMRC has signed you up, or sign up on GOV.UK. HMRC wrote to people it expected to qualify, but signing up is your responsibility.2
2. Choose MTD-compatible software from HMRC's list. Some products are free for simple businesses; bridging software can send figures from a spreadsheet.
3. Record every sale and expense digitally as you go, with the date, amount and category. Bank feeds make this quicker.
4. Choose standard or calendar quarters before you submit anything.
5. After the quarter ends, review the totals, then submit through the software. Keep the confirmation.
6. Compare the in-year tax estimate your software shows with the money you have set aside, and top up if needed.
Jo is a plumber whose 2024/25 turnover was £58,000, with £23,000 of expenses. Qualifying income is turnover before expenses, so £58,000 is over £50,000 and Jo has used MTD since 6 April 2026. Profit of £35,000 a year would mean a 2026/27 bill of about £5,831.80 in income tax and Class 4 NI.
Jo's second update, covering 6 April to 5 October 2026, is due on 7 November 2026. If it goes in on 20 November, there is no penalty point because 2026/27 is HMRC's first year, but it still has to be sent before the 2026/27 return. From 6 April 2027 the same delay would earn a point, and the fourth point would bring a £200 penalty.1
The amount of tax and the payment dates stay the same. You still pay on 31 January and 31 July, payments on account still apply, and the final return is still due by 31 January after the tax year.1 Quarterly updates are information, not bills.
MTD also does not apply to everyone. If your qualifying income is £50,000 or less for 2024/25 you are not in it for 2026/27, though you may be from April 2027 (over £30,000) or April 2028 (over £20,000). Partnerships are not yet included. You can ask for an exemption if you cannot use digital tools because of age, disability, location or another reason.2
For 2026/27: 7 November 2026 for the period 6 April to 5 October 2026, then 7 February 2027 and 7 May 2027. The first one was due on 7 August 2026.
HMRC will not give penalty points for late quarterly updates in 2026/27, the first mandatory year. You still have to send them before filing the return, and late return penalties apply. From 2027/28 each missed deadline earns a point and 4 points means a £200 penalty.
No. Quarterly updates are summaries of income and expenses. Tax is still paid through Self Assessment on 31 January and 31 July.
Yes. Each update covers the tax year from 6 April to the end of the period, so errors from an earlier quarter are corrected in the next update.
Yes. You must still send an update even if there was no income or expenses in the period.
Sole traders and landlords with qualifying income (gross, before expenses) over £50,000 in 2024/25 from April 2026, over £30,000 in 2025/26 from April 2027, and over £20,000 in 2026/27 from April 2028.
The rates, thresholds and rules in this guide are drawn from the official HMRC and GOV.UK sources below, using the confirmed 2026/27 figures. Each link opens the relevant official page in a new tab.
The sole trader tax calculator turns this guidance into a concrete monthly take-home and tax reserve estimate, based on 2026/27 HMRC rates. Enter taxable profit — not turnover.