MTD quarterly update deadlines — and what happens if you miss one

I missed an MTD quarterly update deadline. What happens?

Nothing, in penalty terms. HMRC is not charging late submission penalties for missed quarterly updates in the 2026/27 tax year. Send the update as soon as you can — you cannot file your tax return until every quarterly update for the year is in — but a late one this year does not earn you a penalty point or a fine.

How do Making Tax Digital penalty points work?

Each submission deadline you miss earns one penalty point. At 4 points HMRC charges £200, and a further £200 for every deadline you miss after that. If you run more than one business and several updates are due on the same date, missing all of them still costs you one point, not one per business. Points are not permanent — they expire after a period of compliance, and once you are at the threshold you have to file everything outstanding and stay on time for a run of deadlines before they clear.

So there is really no penalty for a late quarterly update in 2026/27?

Not for the quarterly update itself, no. Two things that concession does not cover, and both catch people out. A late tax return for 2026/27 still earns a penalty point in the normal way — the soft landing is about the quarterly updates only. And paying late is a separate charge that applies from the start. From 2027/28 the points regime covers quarterly updates too.

What do I actually put in a quarterly update?

Totals, not a tax calculation. For each business you report the income and expenses for the three-month period, in the standard HMRC categories, from the digital records you are required to keep. There are no adjustments, no reliefs and no allowances at this stage — those come at the final declaration after the year ends. It is a running summary rather than a mini tax return, which is why an update can be corrected later: if the figures change, the next update carries the revised year-to-date position.

Do I still have to send an update if the business had no income that quarter?

Yes. A quarter with nothing in it is still a quarter you report, and a nil update is what you send. You cannot make your final declaration until every quarterly update for the year is in, so a skipped quarter blocks the end of the year rather than quietly disappearing.

Does a quarterly update replace my Self Assessment tax return?

No. The updates run during the year and the final declaration replaces the return after it, so you do both. The final declaration for 2026/27 is due 31 January 2028, which is the same 31 January date Self Assessment always had.

What if I pay my tax late rather than filing late?

Paying late is charged separately from filing late, and the 2026/27 soft landing does not cover it. Nothing is charged if you pay within 30 days of the due date — that longer run-up is a first-year concession and drops to 15 days after it. After that the first penalty is 3% of what is still outstanding. Beyond that a further penalty builds up daily at an annualised 10% until the balance is cleared, and late payment interest runs on top of all of it from the due date itself.