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If you’re a sole trader or landlord using Making Tax Digital for Income Tax, your MTD quarterly update for 7 November is due soon. Check your records and software before you send the MTD quarterly update.
This update summarises income and expenses; it is not a full tax return. Your software should show the correct reporting period and deadline. Not every sole trader or landlord must use Making Tax Digital (MTD).
Who needs to send an update?
MTD for Income Tax became mandatory from 6 April 2026 for qualifying sole traders and landlords whose qualifying income exceeded £50,000 in their 2024–25 tax return. Qualifying income is combined gross income from self-employment and property, before expenses.
You must also meet HMRC’s eligibility rules and not qualify for an exemption. You generally need to be registered for Self Assessment and have submitted a tax return.
The rollout is phased: income above £30,000 is scheduled to bring people in from 6 April 2027, based on the 2025–26 return; above £20,000 is scheduled from 6 April 2028, based on the 2026–27 return.
Check HMRC’s eligibility guidance. If HMRC has not contacted you, check your position rather than assuming you are exempt.
Step-by-step: how to submit your MTD quarterly update
Step 1: Check your reporting period and software connection
The second update of the 2026–27 tax year is due on 7 November 2026. The figures are cumulative, not just the previous three months.
For standard update periods, the second update covers 6 April to 5 October 2026. For calendar update periods, it covers 1 April to 30 September 2026.
Check HMRC’s quarterly update guidance and follow the period shown in your software.
Confirm you have signed up, connected your software to HMRC and chosen the right period. Use MTD-compatible software. If you have both business and rental income, check each source separately.
Step 2: Gather and reconcile your income
For self-employment, collect invoices, till records, receipts and payment details. Compare bank feeds with your records. Look for missing sales, duplicate entries and payments assigned to the wrong period.
For property income, gather rent and letting-agent statements, plus other rental receipts. Keep separate records for each business or property source covered by MTD. If a payment is late or an invoice remains unpaid, follow HMRC guidance and your software’s treatment rather than guessing.
Updates should reflect your digital records. Don’t submit unsupported estimates to beat the deadline. If you spot an error, check HMRC’s instructions on correcting records and reflecting changes in later cumulative updates.
Step 3: Review expenses and digital categories
Check receipts, supplier invoices, bank transactions and expense categories. Each cost must relate to the relevant business or property activity. Private spending is not a business expense. Mixed-use costs may need apportioning, and capital purchases can need different treatment from everyday expenses.
Use the categories in your software and keep evidence for each figure. You do not normally need to make accounting or tax adjustments before sending an update; HMRC says these are dealt with later. Read its guidance on creating digital records, and see our guide on how long to keep business records.
Step 4: Check the MTD quarterly update summary before submitting
Review every income and expense total. Confirm all relevant sources are included, then check for duplicates, missing transactions and amounts in the wrong category. Compare the summary with your records and bank statements.
Your software compiles the digital records into totals. HMRC receives category totals, not each invoice or receipt. Keep supporting records in case you need to explain or correct an entry. Up-to-date bookkeeping makes this check much quicker.
Step 5: Submit and save confirmation
Open the MTD quarterly update, check dates and totals, then follow your provider’s instructions. Screens differ between products.
Save the submission confirmation or reference. If the software reports an error, resolve it promptly and check whether HMRC received the update. If you use an agent, confirm who will submit it.
What happens after submission, or if you’re late?
Each MTD quarterly update builds your year-to-date position. It may show an estimated tax bill, but it does not finalise your tax or replace the annual tax return.
HMRC will not apply penalty points for late quarterly updates during the 2026–27 tax year. You must still send updates before submitting your MTD tax return. Late tax returns and payments have separate penalty rules.
Read HMRC’s penalty guidance and submit promptly if you miss the deadline.
Frequently asked questions
What period does the 7 November MTD update cover?
It runs from 6 April to 5 October for standard periods, or 1 April to 30 September for calendar periods. Check your software.
Do quarterly updates replace Self Assessment?
No. You must still submit the relevant annual tax return through compatible software.
What records do landlords need for MTD?
Keep rent records, agent statements, expense invoices, receipts and records for each property income source.
What happens if I miss the deadline?
Submit as soon as possible. No penalty points apply to late quarterly updates in 2026–27, but separate tax return and payment penalties remain.
Can an accountant submit my update?
Yes, an authorised agent can help manage MTD tasks, including quarterly updates.
Can I correct an update after sending it?
Yes. Check HMRC guidance; later cumulative updates can reflect corrected records.
Get your records ready
The MTD quarterly update for 7 November is easier when records are organised first. Check your period, reconcile income and expenses, and save your confirmation.
If you have several income sources or are unsure how to categorise a cost, contact Cangaf Accountants for practical accounting and tax support.
