MTD ITSA Quarterly Updates 2026/27: Deadlines, What to Send and Penalties

Making Tax Digital for Income Tax (MTD ITSA) went live on 6 April 2026. If you're a sole trader or landlord with qualifying income over £50,000, you now send HMRC a quarterly update every three months, and the second deadline of the year is 7 November 2026.

This guide covers every 2026/27 deadline, what goes in an update, and what happens if you're late.

Who has to send quarterly updates?

MTD ITSA applies to sole traders and landlords according to their qualifying income: gross self-employment income plus gross property income, before expenses. Employment income, dividends and savings don't count.

• From 6 April 2026: qualifying income over £50,000 on your 2024/25 tax return
• From 6 April 2027: over £30,000, based on your 2025/26 return
• From 6 April 2028: over £20,000

Not sure where you stand? Our MTD ITSA readiness checker works it out in a minute.

MTD ITSA quarterly deadlines for 2026/27

Using standard quarters, which follow the tax year:

• Quarter 1: 6 April to 5 July 2026 — due 7 August 2026
• Quarter 2: 6 July to 5 October 2026 — due 7 November 2026
• Quarter 3: 6 October 2026 to 5 January 2027 — due 7 February 2027
• Quarter 4: 6 January to 5 April 2027 — due 7 May 2027

Then, after the year ends:

• 31 January 2028 — final declaration for 2026/27, and payment of any tax owed

Calendar quarters

You can choose calendar quarters instead (1 April to 30 June, 1 July to 30 September, and so on), which may suit you if your bookkeeping runs to month ends. The due dates stay the same: the 7th of the month after the standard quarter ends.

What goes in a quarterly update?

A quarterly update is a summary, not a tax return. It sends HMRC your income and expense totals by category, taken from your digital records.

• One update per business. A sole trader who also lets property sends two updates each quarter: one for the trade and one for the UK property business. Foreign property is a separate business too.
• Updates are cumulative. Each one covers the tax year to date, so you fix a mistake in an earlier quarter in the next update. There's no need to resubmit.
• Smaller businesses can send less. If a business's turnover is below the VAT threshold (£90,000), you can send total income and total expenses instead of every category.
• No tax is paid quarterly. Payment dates don't change: 31 January and 31 July, with payments on account as before.

Each update also gives you an estimate of your tax bill so far, so January is no longer a surprise.

Landlords: what's different for you

• All your UK properties make up one UK property business, so you send one update for them, not one per property.
• Jointly owned property: each owner reports their own share, and the threshold test uses each owner's share of the gross rent.
• Mortgage interest still gets the 20% tax credit. It's handled at the end of the year, not in the quarterly update.

Our landlord tax return guide explains how rental profit is worked out. If you're a new landlord, start with landlord registration.

Missed the 7 August deadline? Penalties in 2026/27

HMRC has given a first-year easement: you won't get a penalty point for a late quarterly update in the 2026/27 tax year. If you missed Quarter 1, submit it now. Because updates are cumulative, your Quarter 2 update will pick up anything you missed.

But:

• Every quarterly update must still be sent before you can submit your final declaration
• Late final declarations and late tax payments are penalised as normal in 2026/27
• From 2027/28, each late quarterly update earns 1 penalty point. At 4 points you get a £200 penalty, and another £200 for each later late submission while you're at the threshold.

Treat 2026/27 as the year to get into the habit, not a year to skip.

After the fourth quarter: end of year and final declaration

Once the tax year ends, you:

1. Finalise each business — add accounting adjustments, allowances and anything that isn't in the quarterly figures
2. Add your other income — employment, dividends, savings, pensions and reliefs
3. Submit your final declaration by 31 January following the end of the tax year

The final declaration takes the place of the old Self Assessment tax return.

How to send quarterly updates with AccLedger

AccLedger is HMRC-recognised, full end-to-end MTD for Income Tax software for sole traders and landlords:

1. Connect your bank feed — income and expenses come in automatically and are categorised for you
2. Connect to HMRC once with your Government Gateway login — AccLedger reads your obligations and deadlines straight from HMRC
3. Review the update — AccLedger compiles each quarter from your live records, one per business
4. Submit — you check the figures and send them to HMRC in a few clicks, and you get reminders before every deadline
5. Finish the year — end of year, tax calculation and final declaration, all in the same place

Plans start at £5 a month for landlords and £7.50 a month for sole traders, with unlimited MTD submissions. Start a 30-day free trial — no card needed.

Frequently asked questions

When is the next MTD ITSA quarterly update due? 7 November 2026, for the quarter from 6 July to 5 October 2026.

Do I pay tax every quarter under MTD ITSA? No. Quarterly updates are reports, not payments. You still pay on 31 January and 31 July.

What happens if I submit an MTD quarterly update late in 2026/27? No penalty point this year, under HMRC's first-year easement. You must still send it before your final declaration, and points apply from 2027/28.

Can I correct a mistake in a quarterly update? Yes. Updates are cumulative, so the next update you send replaces the year-to-date figures. Mistakes in the final quarter can be fixed before the final declaration.

I have two properties and a sole trade. How many updates do I send? Two each quarter: one for your sole trade and one for your UK property business, which covers both properties.

Can my accountant send my quarterly updates? Yes. Once you've authorised them as your agent, they can submit through their own agent services account. In AccLedger you can invite your accountant at no extra cost.

Do I still need to file a tax return for 2025/26? Yes. The 2025/26 return, due 31 January 2027, is filed the usual way. Your first final declaration under MTD is for 2026/27.

This article is general guidance based on HMRC rules as of October 2026 and is not tax advice. Your HMRC obligations show the exact periods and deadlines that apply to you.