Missed Your First MTD Quarterly Update? Don’t Panic — Here’s What to Do
MTD for Income Tax is now underway, but if you haven’t got everything sorted yet, it’s not too late.
Making Tax Digital (MTD) for Income Tax is no longer something that’s coming in the future. It’s here.
Since 6 April 2026, sole traders and landlords with qualifying income over £50,000 have been required to use MTD for Income Tax, unless they are exempt.
The first quarterly update deadline was 7 August 2026 and, according to HMRC, more than 436,000 sole traders and landlords had successfully submitted their first quarterly update by 12 August. More than 570,000 had signed up for the service.
So MTD is very much up and running.
But what if you’re one of the people who hasn’t got it sorted yet?
Perhaps you haven’t signed up. Maybe you aren’t using the right software. Your bookkeeping might not be up to date, or perhaps you knew MTD was coming but weren’t really sure what you were supposed to do.
If that sounds familiar, don’t panic. You can still get things sorted.
Missed the first MTD deadline? You’re not alone
More than 864,000 sole traders and landlords were within the scope of MTD for Income Tax for the 2026/27 tax year.
While more than 570,000 had signed up by 12 August, that still left a significant number who had not.
There could be many reasons for this. The important thing is that if you haven’t got everything in place yet, you’re certainly not the only one.
HMRC has now started signing up people who should be using MTD for Income Tax but haven’t signed themselves up. This is being done in stages from September 2026.
If HMRC hasn’t signed you up yet, you can still sign up yourself or ask your accountant to do it for you.
The important thing now is to take action rather than continue putting it off.
Will I get fined if I’ve missed my first MTD quarterly update?
This is likely to be one of your biggest concerns if you have missed the first deadline.
The good news is that HMRC will not issue penalty points for late MTD quarterly updates during the 2026/27 tax year.
So, if you should have submitted your first quarterly update by 7 August but didn’t, don’t assume that you’ve already been hit with a penalty for the late quarterly update.
However, that doesn’t mean you can simply forget about it.
You still need to keep the required digital records and submit your overdue quarterly update as soon as possible.
It is also important to understand that this only relates to penalty points for late MTD quarterly updates. Penalties can still apply for things such as submitting your tax return late or paying your tax late.
From 6 April 2027, the position changes and the points-based penalty system will apply to missed quarterly deadlines.
So there is some breathing space during this first year, but now is the time to get your MTD affairs in order.
What should I do if I haven’t signed up for MTD?
The first thing is to establish whether you actually need to use MTD for Income Tax.
For the 2026/27 tax year, MTD applies to sole traders and landlords whose total qualifying income from self-employment and property was more than £50,000 in the 2024/25 tax year, unless an exemption applies.
Qualifying income is your total income from self-employment and property before deducting expenses.
If you should be using MTD but haven’t signed up, there are now two possibilities.
HMRC may already have signed you up, or it may be planning to do so as it works through taxpayers in stages.
If you haven’t been signed up by HMRC yet, you can still take action yourself. You can sign up or ask your accountant to do it for you.
There is an advantage to getting this sorted rather than simply waiting for HMRC. When you sign up, you can check that your income sources and other details are correct from the start.
If you aren’t sure whether you’ve been signed up, or even whether MTD applies to you, this is something we can help you establish.
What do I actually need to do for MTD?
MTD can sound complicated when you first start reading about it, but the basic requirements are reasonably straightforward.
You need to use compatible software to keep digital records of your business income and expenses.
You then use the information in those digital records to send quarterly updates to HMRC.
A quarterly update is not another tax return. It is a summary of the income and expenses recorded in your software for the relevant period.
At the end of the tax year, you still need to complete your tax return and pay any tax due in the normal way.
In simple terms, you need a system that allows you to:
- keep your business records digitally;
- keep those records up to date;
- submit the required quarterly updates; and
- complete your accounts and tax return at the end of the year.
You don’t need to become an MTD expert.
You need to make sure your business complies with the rules, but that doesn’t mean spending your evenings trying to understand HMRC guidance or learning accounting software when you would rather be doing something else.
What if my bookkeeping isn’t up to date?
If you’ve missed your first quarterly update, there’s a chance your digital bookkeeping may also need some attention.
Again, don’t panic.
If you need to catch up, your digital records will need to be brought up to date from the beginning of the tax year. Once the records are in order, the overdue quarterly update can be submitted.
The best approach is to establish where you are now.
Are you already using suitable accounting software?
Are your income and expenses recorded from the beginning of the tax year?
Have you been signed up for MTD?
Which quarterly updates are showing as overdue?
Once you know what is missing, you can put a plan in place to catch up.
More importantly, you can set things up properly so that you don’t find yourself in exactly the same position when the next quarterly deadline arrives.
You don’t have to do all this yourself
Running your business already takes enough of your time.
After spending all day doing the work your customers pay you for, the last thing you probably want to do when you get home is spend the evening working out how Making Tax Digital works.
You don’t have to.
At Springer Accounting, we can help you get MTD sorted and keep it that way.
For new clients who need to use MTD for Income Tax, we can:
- check where you currently stand with MTD;
- sign you up if you still need to be registered;
- help get your accounting records organised;
- deal with your quarterly updates;
- prepare your final accounts; and
- prepare and submit your Self Assessment tax return.
You’ll still need to provide the information we need and make sure the information about your business is correct, but you don’t have to work through the whole MTD process on your own.
The aim is to make the process as straightforward and painless as possible so you can spend more time running your business and less time worrying about paperwork.
Get MTD sorted now — and keep it simple going forward
If you’ve missed your first quarterly update, the most important thing is not to ignore it.
HMRC isn’t issuing penalty points for late quarterly updates during the 2026/27 tax year, but the quarterly reporting requirements haven’t gone away.
Getting everything in order now means you can bring your records up to date, deal with any overdue updates and put a system in place for the next quarter.
Once the right system is working, MTD should become part of your normal business routine rather than another piece of paperwork hanging over you.
If you’re a sole trader and you’re worried that you’ve missed your first MTD quarterly update, haven’t signed up yet, or simply aren’t sure what you’re supposed to be doing, get in touch with Springer Accounting.
We’ll help you work out where you are, what needs doing and what the next steps are.
We can deal with your MTD registration, quarterly updates, final accounts and tax return, so you don’t have to spend your evenings trying to work it all out yourself.
Contact Springer Accounting today and spend less time worrying about MTD and more time running your business.