Skip to main content

Making Tax Digital

Missed the 7 August or 7 November MTD deadline? There is no penalty, but you still have to send the update

· Updated · 10 min read · Checked against Budget 2026 and GOV.UK guidance on 6 November 2026 (penalty guidance last updated 30 March 2026)

Will you be fined for missing the 7 August or 7 November deadline?

No. HMRC has waived late-filing penalties for MTD quarterly updates for the whole of the 2026-27 tax year. The guidance is unambiguous, and it is worth reading in HMRC's own words rather than anyone else's.

“There are no penalties for missing a quarterly update deadline for the 2026 to 2027 tax year.”

GOV.UK, Penalties for Making Tax Digital for Income Tax, updated 30 March 2026

The easement was announced at the November 2025 Budget. It covers the 2026-27 tax year, which makes it the first year for the April 2026 cohort: the landlords and sole traders brought in at the £50,000 threshold. In Budget 2026, published on 28 October 2026, the government said people required to join in April 2027 will not get penalty points for late quarterly updates for 2027-28, though they must still send them before they can submit their tax return. It names only people required to join in April 2027, so on what has been published the April 2026 group's waiver does not carry into 2027-28. ICAEW reads it the same way. We have found no equivalent announcement for people required to join in April 2028. GOV.UK's penalty guidance had not been updated for this when we checked on 6 November 2026. People required to join in April 2027 will, on current GOV.UK guidance, get the 30-day first-year period for late payment, unless they volunteered first, in which case they keep 15 days.

The waiver covers all four 2026-27 updates, including the fourth, due 7 May 2027, even though HMRC's August 2026 press release says points apply “from 6 April 2027 onwards”. GOV.UK's penalty guidance is clearer: points apply to quarterly updates for tax years after 2026-27. On GOV.UK's wording, the 7 May 2027 update is still inside the waiver, and we read it that way. This is not a general amnesty, and it is not a reason to ignore the deadline.

So where does the £200 figure come from?

The £200 figure is real, and so is the points-based regime behind it. It just does not apply to quarterly updates for 2026-27. Under the Finance Act 2021 regime, quarterly filers accrue one point per missed deadline, and on reaching a threshold of four points HMRC charges £200, plus a further £200 for every subsequent late submission. That is what awaits you in 2027-28 if you were required to join from April 2026, whenever you signed up. It is not what happens if you miss a 2026-27 quarterly update.

We cite GOV.UK directly here and date the checks: on a rule this new, a figure without a citation behind it is worth little.

What the waiver does not cover

The waiver is narrow. Four things sit outside it.

1. The updates are still mandatory

No penalty is not the same as no obligation. The quarterly update obligations remain a legal requirement, and HMRC will not let you submit your tax return until they are met. Because the updates are cumulative, a later one can cover an earlier one: HMRC's developer guide says filing the second update by 7 November satisfies the obligations for both the first and second quarters. So skipping a quarter does not save you the work. It moves it. Once points apply to you, each missed deadline earns one.

2. You must still keep digital records

The waiver does not change that, and if you are catching up you need digital records from the start of the tax year.

3. Your tax return is outside the waiver

The waiver covers quarterly updates only. If you are required to use MTD for 2026-27, or volunteered for it in 2026-27 or earlier (GOV.UK says volunteers cannot go back to the old penalties, even if they stop), miss your 2026-27 tax return, due 31 January 2028, and you pick up a penalty point immediately, under the same points regime that starts applying to quarterly updates from 2027-28 if you were required to join from April 2026. If you are first required to use MTD from April 2027 or later, that return stays under the old rules, unless you volunteered for MTD in 2026-27 or earlier. Your 2025-26 return, due 31 January 2027, is still under the old Self Assessment rules unless you volunteered for MTD in 2025-26 or earlier: a £100 penalty as soon as it is late.

4. Late payment still costs you

This is the risk that survives the waiver. The penalties apply to your balancing payment and to tax due after an amendment or assessment, not to payments on account, though interest still runs on a late payment on account. On 31 January 2027 you pay any 2025-26 balance, usually with your first payment on account for 2026-27. The second is due 31 July 2027. Your balancing payment for 2026-27 is due on 31 January 2028. Sending a quarterly update late carries no penalty this year. Filing your tax return late, or paying late, can cost you.

What does paying 2026-27 tax late cost?

No penalty for the first 15 days, though interest runs from the first day. After that it escalates quickly. The percentages below apply to the tax still outstanding at each point, and the 10% penalty from day 31 runs for up to 2 years. If you cannot pay in full, contact HMRC as soon as possible to set up a payment plan. If HMRC agrees a payment plan and you keep to it, penalties are paused from the date you contacted them. To avoid a penalty, pay in full or contact HMRC to set up a plan within 15 days (30 in your first year of the new penalties). Penalties can still apply if no plan is agreed or you do not keep to it, and interest still runs.

These are the rules for tax for 2026-27, due 31 January 2028, if you are required to use MTD for 2026-27 or volunteered for it in 2026-27 or earlier. If you are first required to use MTD from April 2027 or later, your 2026-27 tax and return stay under the old rules, unless you volunteered for MTD in 2026-27 or earlier. For tax, that is 5% of the unpaid tax at 30 days, 6 months and 12 months, plus interest. On our reading of the regulations, if you were required from 6 April 2026, the new rules apply even if you have not signed up. On 31 January 2027 you pay any 2025-26 balance, usually with your first payment on account for 2026-27. The second is due 31 July 2027. The 5% penalties apply to the balance, unless you volunteered for MTD in 2025-26 or earlier. Payments on account carry interest if late, not penalties.

Days 1 to 15No penalty3%Day 15+ 3%Day 3010% / yrDay 31 onwards
Late payment penalties on tax for 2026-27 (due 31 January 2028), if you are required to use MTD for 2026-27 or volunteered for it in 2026-27 or earlier. In your first year in the new penalty system you get 30 days rather than 15 before the first penalty bites, and you get that once (MTD volunteers from before April 2026 have 15 days for 2026-27). The 10% from day 31 is a penalty, not interest: late payment interest is charged separately, at the Bank of England base rate plus 4%, from the original due date. Source: GOV.UK. The 3% figures rise to 4% in 2027-28.

The first-year easement does reach late payment, partly. In your first year in the new penalty system HMRC gives you 30 days rather than 15 before the first late-payment penalty bites (unless you were an MTD volunteer before April 2026, in which case you have 15 days for 2026-27). You only get that once. After day 30 the penalties are the same as everyone else's, and late-payment interest at the Bank of England base rate plus 4% runs from the original due date regardless.

When are the 2026-27 quarterly deadlines?

Four updates and a tax return. Each update covers everything from 6 April, not just the latest three months.

UpdateFigures you actually submitDeadline
Update 16 Apr to 5 Jul 20267 August 2026
Update 26 Apr to 5 Oct 20267 November 2026
Update 36 Apr 2026 to 5 Jan 20277 February 2027
Update 46 Apr 2026 to 5 Apr 20277 May 2027
Tax returnFull tax year31 January 2028

The law defines each update period as running from the start of the tax year, so the second period is 6 April to 5 October and that is how GOV.UK shows it. Some older guides still describe discrete quarters. If you elect calendar update periods, the periods run from 1 April and end on the last day of June, September, December and March, but the deadlines do not move. GOV.UK says to use this if your accounting period covers 1 April to 31 March. You can only choose it before your first update of the year. If you were required to send updates last year on standard periods, the start is 6 April.

The figures are cumulative

Every quarterly update is a running year-to-date total, not a figure for that quarter alone. Your Q2 submission restates everything from 6 April, and it overwrites Q1.

It also changes how you fix a mistake. Correct your records and the next update carries the fix. For the fourth update, GOV.UK says you may need to resend it, before you make any tax adjustments and before you submit your tax return.

It also means a Q2 figure that looks alarmingly large is usually correct. It is not three months of rent. It is six.

What to do now

Use this year to find out what breaks. If you were required to join from April 2026, whenever you signed up, each missed deadline in 2027-28 earns a point, and reaching 4 points, counting any for a late tax return, brings a £200 penalty.

  • If you missed 7 November, send the 6 April to 5 October update (1 April to 30 September if you chose calendar periods) as soon as you can, whether or not you sent the August one. Until the next update period ends on 5 January 2027 (31 December 2026 on calendar periods), that is the one to send. There is still no penalty for 2026-27, and the next deadline is 7 February 2027. Your HMRC online account shows any overdue updates.
  • If you missed 7 August but sent the 6 April to 5 October update by 7 November, HMRC’s developer guide says that one meets both obligations. Your HMRC online account shows whether anything is still overdue.
  • If HMRC has written to say it signed you up (HMRC said it would start doing this from September 2026), follow its guidance: catch up your digital records from the start of the tax year and send the overdue update as soon as possible.
  • Pay on time. On 31 January 2027 you pay any 2025-26 balance, usually with your first payment on account for 2026-27. The second is due 31 July 2027. The balance is still under the old rules unless you volunteered for MTD in 2025-26 or earlier: 5% penalties at 30 days, 6 months and 12 months, plus interest. Payments on account carry interest if late, not penalties. Late payment is the risk that survives the waiver.
  • If HMRC has not written to you, check whether you are mandated. Qualifying income is gross income before expenses, tested against your 2024-25 return. If your own share of the rent was £55,000 and your profit £10,000, you are in scope unless you are exempt.
  • Report mortgage interest quarterly. Residential property finance costs are a named quarterly category. Relief is a tax reduction worked out in HMRC’s tax calculation, not an expense, and it is only final when you submit your tax return. It is 20% for 2026-27. From 2027-28 it is tied to the property basic rate, which Budget 2026 announced will be 24%, subject to legislation in Finance Bill 2026-27.

The regulations require “functional compatible software” (SI 2026/336 reg 3). HMRC's press release of 12 August 2026 says quarterly updates need to be sent through HMRC-recognised software. LetSort is not recognised or listed, so if you need to file now, choose a product from HMRC's finderand check it is available now. HMRC does not recommend any specific product, so check that what you choose covers all your income sources.

Common questions

What if I missed the 7 November 2026 deadline?

There is still no penalty for a late quarterly update for 2026-27, whether or not you sent the August update, but you still have to send it. Send the 6 April to 5 October update (1 April to 30 September if you chose calendar periods) as soon as you can. Until the next update period ends on 5 January 2027 (31 December 2026 on calendar periods), that is the one to send. The next deadline is 7 February 2027. Your HMRC online account shows any overdue updates, and you cannot submit your tax return until your updates are sent. HMRC’s press release of 12 August 2026 says quarterly updates need to be sent through HMRC-recognised software, and the regulations say “functional compatible software”. HMRC’s software finder lists products that have passed its recognition process.

Will I be fined for missing the 7 August 2026 MTD deadline?

No. HMRC has confirmed there are no penalties for missing a quarterly update deadline for the 2026 to 2027 tax year. The waiver was announced at the November 2025 Budget. The quarterly update is still mandatory, and late payment of tax still carries penalties. If you sent the 6 April to 5 October update (1 April to 30 September if you chose calendar periods) by 7 November, HMRC’s developer guide says that meets both obligations. If you did not, send it as soon as you can.

Do I still have to file the quarterly update if there is no penalty?

Yes. The quarterly update obligations remain a legal requirement, and HMRC will not let you submit your tax return until they are met. You must also still keep digital records. Because the updates are cumulative, a later update can cover an earlier one: HMRC’s developer guide says that submitting the second update by 7 November satisfies the obligations for both the first and second quarters. Skipping a quarter does not remove the work, it moves it. Once points apply to you, each missed deadline earns one.

What penalties still apply while the waiver runs?

It depends which year’s tax you are paying. Any balance for 2025-26, due 31 January 2027, is under the old rules unless you volunteered for MTD in 2025-26 or earlier: 5% of the unpaid tax at 30 days, 6 months and 12 months. You will usually also owe your first payment on account for 2026-27 that day, and the second on 31 July 2027. Late payments on account carry interest, not penalties. Tax for 2026-27, due 31 January 2028, is under the new rules if you are required to use MTD for 2026-27 or volunteered for it in 2026-27 or earlier. Up to 15 days late, no penalty. 16 to 30 days late, 3% of the tax owed at day 15, or nothing if it is your first year of the new penalties (you get that once, and MTD volunteers from before April 2026 have 15 days for 2026-27). 31 days or more, 3% of the tax owed at day 15 plus 3% of the tax owed at day 30, plus a penalty at an annual rate of 10% charged daily from day 31 for up to 2 years. If you are first required to use MTD from April 2027 or later, your 2026-27 tax and return stay under the old rules, unless you volunteered for MTD in 2026-27 or earlier. On our reading of the regulations, if you were required from 6 April 2026, the new rules apply even if you have not signed up. Under both sets of rules, late payment interest at the Bank of England base rate plus 4% runs from the first day you are late. Your tax return is outside the quarterly-update waiver.

When do MTD penalty points actually start?

If you were required to join from April 2026, whenever you signed up, points for missed quarterly updates begin with the 2027-28 tax year (first deadline 7 August 2027). The Budget 2026 documents say people required to join in April 2027 will not get points for late 2027-28 quarterly updates, but must still send them before they can submit their tax return. Tax returns are different. If you are required to use MTD for 2026-27 or volunteered for it in 2026-27 or earlier, miss the deadline for your 2026-27 tax return (31 January 2028) and you get a penalty point straight away. If you are first required to use MTD from April 2027 or later, that return stays under the old rules, unless you volunteered for MTD in 2026-27 or earlier. Your 2025-26 return, due 31 January 2027, is still under the old Self Assessment rules unless you volunteered for MTD in 2025-26 or earlier: a £100 penalty as soon as it is late, then £10 a day after 3 months (up to £900), and further penalties at 6 and 12 months. Under the points regime, if you are required to use MTD, the threshold is 4 points, each missed deadline is 1 point, and reaching the threshold triggers a £200 penalty plus a further £200 for each subsequent late submission. Below the threshold, points are removed automatically 24 months after the missed deadline. Once you reach 4 points you must file on time for 12 months and have submitted everything due in the previous 24 months before they clear. If you are a volunteer, you get no penalties for late quarterly updates while you volunteer. Your threshold is 2 points for late tax returns, and you clear them by sending your next 2 returns on time and any outstanding returns from the previous 24 months.

Are MTD quarterly updates cumulative or per-quarter?

Cumulative. Each quarterly update restates your income and expenses from the start of the tax year, and it overwrites the previous submission. So if the first update had a mistake, correct your records and the next update carries the fix. For the fourth update, GOV.UK says you may need to resend it, before you make any tax adjustments and before you submit your tax return.

Who has to file MTD quarterly updates from April 2026?

Landlords and sole traders with qualifying income above £50,000, unless exempt. Qualifying income is gross income before expenses, only your share of jointly owned property income counts, and it is tested against an earlier tax return, so mandation from 6 April 2026 is based on the 2024-25 return. The threshold drops to £30,000 in April 2027 and £20,000 in April 2028. The Budget 2026 documents say the government will exempt some groups until further notice, including people eligible for qualifying care relief and expected non-resident customers, with legislation due before April 2027.

Sources

Every penalty figure and deadline above traces back to GOV.UK, HMRC or legislation.gov.uk. We cite the primary source rather than the many sites paraphrasing it.

Written by Ben Morton, founder of LetSort. I build our HMRC Making Tax Digital integration directly against the API (OAuth, fraud prevention headers and cumulative year-to-date quarterly submissions) and test it in HMRC's sandbox. On 29 October 2026 HMRC gave LetSort production access, which lets it connect to HMRC's live systems. That does not make it HMRC recognised, and we do not claim otherwise. As at 6 November 2026 no filing had gone through LetSort's live service, and the full filing journey had only run in HMRC's test environment. LetSort covers UK property income only and is not on HMRC's software list. HMRC's press release of 12 August 2026 says quarterly updates need to be sent through HMRC-recognised software, and the regulations say “functional compatible software”. If you need to file now, choose a product from HMRC's finder and check it is available now. The penalty rules and deadlines above come from GOV.UK, HMRC guidance, the regulations and Budget 2026, checked on 6 November 2026. LetSort is operated by ToggleKit Ltd.