The first MTD for Income Tax quarterly update was due on 7 August 2026. A lot of people didn't send one, and judging by our phone this month, most of them found out afterwards.
If that's you, here's the fact that should take the pressure off straight away.
There is no fine. HMRC said so.
HMRC's guidance is explicit: "There are no penalties for missing a quarterly update deadline for the 2026 to 2027 tax year." The whole first year of MTD is a grace period for quarterly updates. Points and the £200 penalties only start from April 2027.
Two things the grace period doesn't cover, so you're not caught out: late payment penalties and interest still run as normal, and your 2025/26 tax return is still due by 31 January 2027 under the old rules.
So why bother catching up?
Because the missed deadline is telling you something. Whatever system you had in place for April to July didn't produce a filing, and next year the same gap costs points and eventually money. There are four deadlines a year from now on: 7 August, 7 November, 7 February, 7 May.
A year where mistakes are free is the best possible time to build the habit. That's not a sales line, it's just the maths of the penalty system.
What catching up looks like
- Your bank transactions for 6 April to 5 July get pulled and categorised. No receipt-sorting first
- The late update gets filed. You see and approve the figures before anything is sent
- The bookkeeping goes onto a monthly rhythm so 7 November files without you touching it
For most people this takes five to ten working days from giving bank access.
And if you're reading this unsure whether MTD even applies to you: it's for self-employment and property income over £50,000 in 2026/27. Under that, you're not in scope yet.
Source: HMRC, Penalties for Making Tax Digital for Income Tax. Correct as at August 2026.