MTD Quarterly Update Due 7 November 2026: A Guide for Landlords and Sole Traders

2 days ago

4 min read

HMRC used Agent Update 148, published on 15 October 2026, to remind taxpayers and agents that the second Making Tax Digital for Income Tax quarterly update is due by 7 November 2026.[1]

The requirement principally concerns sole traders and landlords who are already within MTD for Income Tax. However, not every UK landlord and not every Self Assessment taxpayer must submit an update by 7 November. The first step is to confirm whether the individual falls within the mandatory 2026/27 population, followed by a check of the software and underlying records.[2]

1. Who must use MTD for Income Tax in 2026?

Under HMRC's phased timetable, MTD generally applies from 6 April 2026 to eligible individuals whose combined gross self-employment and property income exceeded £50,000 in the 2024/25 Self Assessment return.[2]

The £50,000 test concerns relevant income before expenses, rather than profit. Employment income is not simply added to the test as though it were self-employment or property turnover.

Mandatory phase：From 6 April 2026；Tax return used by HMRC：2024/25；Combined qualifying self-employment and property income：More than £50,000
Mandatory phase：From 6 April 2027；Tax return used by HMRC：2025/26；Combined qualifying self-employment and property income：More than £30,000
Mandatory phase：From 6 April 2028；Tax return used by HMRC：2026/27；Combined qualifying self-employment and property income：More than £20,000

These are HMRC's usual phased thresholds. Particular income types, exemptions and personal circumstances may require separate consideration.[2]

Example: A landlord had gross property income of £35,000 and sole-trade turnover of £20,000 in 2024/25, giving combined qualifying income of £55,000. Even if the profit after expenses was below £50,000, the person may fall within MTD from April 2026. Eligibility should still be confirmed against HMRC's rules and the individual's facts.[2]

2. What must be submitted by 7 November?

An MTD quarterly update uses compatible software to send HMRC categorised summaries of income and expenses for each relevant self-employment or property business. It is not a complete Self Assessment tax return every three months, nor does it create a requirement to pay Income Tax quarterly.[3]

For the second 2026/27 update:

Under standard update periods, the cumulative information covers 6 April to 5 October 2026.
Under calendar update periods, the second period ends on 30 September 2026 and the software will normally prepare the corresponding cumulative information.
The submission deadline for both methods is 7 November 2026.[3]

HMRC requires a year-to-date cumulative summary from the start of the selected update period through its end. It is not merely a report of transactions arising between July and October. Compatible software should calculate the cumulative totals under the selected method.[3]

3. Does a late first-year quarterly update trigger an immediate £200 penalty?

A late 2026/27 quarterly update will not itself trigger an immediate £200 penalty. HMRC states that it will not apply quarterly-update penalty points for late updates in the 2026/27 tax year.[4]

That does not make MTD voluntary. A taxpayer within scope must still keep digital records and submit the required updates before completing the annual return. Late annual returns can still produce penalty points and financial penalties, while late payment is governed by separate rules.[3][4]

It is therefore inaccurate to describe the first-year easement as meaning that there are no MTD penalties at all in 2026.

4. Four checks for anyone who is not ready

Confirm eligibility. Review the 2024/25 Self Assessment return, calculate qualifying income and check whether an exemption applies.[2]
Check HMRC enrolment. HMRC began automatically signing up some eligible individuals from September 2026, but the absence of a letter does not by itself prove that MTD does not apply.[1]
Set up compatible software and digital records. HMRC does not provide bookkeeping software. A business may use recognised software or, where permitted, a spreadsheet connected through suitable bridging software.[2]
Reconcile and submit cumulative figures. Include the appropriate income and expense categories, then check the HMRC online account to confirm that the update has been recorded.[3]

Anyone who missed the first update should not leave the position unresolved merely because first-year quarterly penalty points are suspended. Digital records and outstanding updates should still be brought up to date.[3][4]

5. When is the annual Self Assessment return due after MTD begins?

The deadlines for different tax years can easily be confused:

Requirement：Online Self Assessment return for 2025/26；Usual deadline：31 January 2027
Requirement：First 2026/27 MTD quarterly update；Usual deadline：7 August 2026 — passed
Requirement：Second 2026/27 MTD quarterly update；Usual deadline：7 November 2026
Requirement：Third 2026/27 MTD quarterly update；Usual deadline：7 February 2027
Requirement：Fourth 2026/27 MTD quarterly update；Usual deadline：7 May 2027
Requirement：2026/27 annual return through MTD software and payment；Usual deadline：31 January 2028

This is the usual timetable. The taxpayer's tax year, applicable regime and formal HMRC communications should always be checked.[2]

Frequently Asked Questions

Q: I receive only PAYE salary and have no self-employment or property income. Does this MTD deadline apply to me?

PAYE salary alone does not bring someone into this phase of MTD for Income Tax merely because it exceeds £50,000. The qualifying self-employment and property-income conditions must be considered.[2]

Q: My business had no income during the quarter. Is an update still required?

Where MTD applies and the relevant business had no income or expenses in the period, the taxpayer will generally still need to submit a quarterly update showing that there were no transactions.[3]

Q: Must I pay six months of Income Tax immediately after the second update?

No. A quarterly update supplies income and expense summaries. MTD does not convert the usual annual Self Assessment payment timetable into quarterly Income Tax payments.[2][3]

The 7 November deadline is an important point in the first year of MTD. Affected landlords and sole traders should confirm enrolment, software settings and the reporting period before submission. Multiple businesses, several properties or uncertainty over the threshold can make a professional review particularly valuable.

This article provides general tax information based on HMRC rules available as at 21 October 2026. MTD eligibility can be affected by exemptions and individual circumstances.

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