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Making Tax Digital: Second Quarterly Update Due by 7 November 2026 for Sole Traders and Landlords

Sole traders and landlords with income over £50,000 must send their second Making Tax Digital quarterly update, covering 6 April to 5 October, by Saturday 7 November 2026. Late quarterly updates do not earn penalty points in the 2026 to 2027 tax year.

By Entrepreneur Group · Published 4 November 2026

Sole traders and landlords using Making Tax Digital (MTD) for Income Tax must send their second quarterly update to HMRC by Saturday 7 November 2026. The standard update period runs from 6 April to 5 October. MTD has been mandatory since 6 April 2026 for people with self-employment and property income over £50,000, and HMRC has published five points to help them meet the deadline.

This is the second deadline under the new system. The first quarterly update was due in August. As we reported in our guide to MTD for income over £30,000, the threshold falls to £30,000 from 6 April 2027 and £20,000 from 6 April 2028.

Five things HMRC wants you to know

HMRC's press release of 2 November sets out five common misunderstandings:

• A quarterly update is not a tax return. It is a short summary of self-employment and property income and expenses, sent through compatible software. There is no tax calculation and no payment. Your tax is worked out when you send your 2026 to 2027 tax return.
• You do not need to call HMRC to check it arrived. You can see your submission history in your online account or your software.
• You do not need expensive specialist software. HMRC-recognised options include free software and spreadsheets linked to bridging software. HMRC has a software finder.
• You do not need to resend an update to fix a mistake. Correct your digital records when you spot the error, and the correction flows into your next update.
• You do not have to send it before the weekend. Updates can be sent any time up to and including Saturday 7 November. The Self Assessment helpline is open that day from 9am to 3pm.

Craig Ogilvie, HMRC's Director of Making Tax Digital, said: "Thousands of sole traders and landlords have already successfully sent their first quarterly update." HMRC encourages people to send updates as early as possible after the period ends.

What goes in the update

According to HMRC's guidance, each update contains totals for each category of income and expenses, for each self-employment and property business. The totals are cumulative, covering the tax year so far from 6 April, rather than just the latest three months. You do not send individual receipts or invoices. If you had no income or expenses in the period, you still need to send an update.

If your accounts run from 1 April to 31 March, you can choose calendar update periods instead, so this update would cover 1 April to 30 September. The deadline is still 7 November. You must choose calendar periods in your software before your first update, and you cannot switch for the rest of the tax year.

What happens if you miss it

For the 2026 to 2027 tax year, HMRC's guidance says late quarterly updates do not earn penalty points, although points still apply to late tax returns. From the following tax year, each missed update deadline earns a point, and reaching 4 points triggers a £200 penalty. People who have joined MTD voluntarily do not get penalties for late quarterly updates.

What it means for founders

This section is editorial guidance. If you run a limited company, MTD for Income Tax does not apply to the company itself, but it may apply to any personal self-employment or rental income you have. If you are in scope, treat this first year as practice: get into the habit of keeping records up to date each month so each update takes minutes. If you think you may qualify for an exemption, for example because you are digitally excluded, HMRC has an exemption checker. For advice on your own position, speak to an accountant.

Frequently asked questions

When is the second Making Tax Digital quarterly update due?

The second quarterly update for the 2026 to 2027 tax year is due by 7 November 2026. Under standard update periods it covers 6 April to 5 October 2026.

Is there a penalty for a late MTD quarterly update?

Not in the 2026 to 2027 tax year. HMRC's guidance says late quarterly updates earn no penalty points this year, but from the next tax year each missed deadline earns a point and 4 points trigger a £200 penalty.

Do I pay tax with my MTD quarterly update?

No. HMRC says a quarterly update is a summary of income and expenses, not a tax return, and involves no tax calculation or payment. Tax is worked out when you file your tax return.

Sources

1. HMRC: Five things you need to know ahead of Making Tax Digital for Income Tax quarterly deadline (2 November 2026) (reviewed 4 November 2026)
2. HMRC: Use Making Tax Digital for Income Tax: send quarterly updates (reviewed 4 November 2026)
3. HMRC: Choose the right software for Making Tax Digital for Income Tax (reviewed 4 November 2026)
4. HMRC: Find out if you can get an exemption from Making Tax Digital for Income Tax (reviewed 4 November 2026)