What happens if I miss a Making Tax Digital quarterly update?

A late 2026-27 quarterly update earns no penalty point, nor will a 2027-28 one if you join in April 2027. Otherwise each missed deadline earns 1 point. Either way, you must still send it before your tax return.

Making Tax Digital for Income Tax (MTD) means sending HMRC a quarterly update, a running total of your income and costs, by 7 August, 7 November, 7 February and 7 May. This page covers what a missed one means for you in practice. The full penalty rules, including late payment, are in the MTD penalties guide. Everything below follows GOV.UK as checked on 16 October 2026, and the Budget of 28 October 2026.

Which missed deadlines can earn a point

The relief for 2026-27 helps the group that joined on 6 April 2026. At the Budget on 28 October 2026 the government said people who must join on 6 April 2027 will get the same for their 2027-28 updates, which must still be sent. HMRC's penalties guidance had not been updated when we checked on 29 October 2026.

A point is not a fine. Once you are required to use MTD, the £200 penalty starts at 4 points, and each further missed deadline at that level costs another £200. Below 4 points, each point is removed automatically 24 months after the deadline it came from. You get one point per deadline, even if a builder who also lets a flat sends both updates late.

A missed update does not go away

The relief stops points, not the duty. Regulation 9 of the Income Tax (Digital Obligations) Regulations 2026 requires an update for every quarterly period of every business, and GOV.UK says you must send your quarterly updates before you can submit your tax return using software. A missed update stays outstanding until you send it, and your HMRC online account lists any overdue ones.

There is a second knock-on. To clear points once you reach 4, you need 12 months of on-time submissions and must send anything outstanding from the previous 24 months. An old missing update can hold that up.

What a catch-up looks like

Say a landlord with two flats, in MTD since April 2026, misses the 7 November 2027 deadline for the period from 6 April to 5 October 2027. That is 1 point. She sends the update on 20 November, then sends the next one on time by 7 February 2028. The point stays on her record until it is removed 24 months after the missed deadline, as long as she does not reach 4 points in the meantime.

Because each update covers the tax year so far, the catch-up is mostly record-keeping. Get the digital records up to date from 6 April, check the totals in your software, then send. GOV.UK tells people HMRC has signed up partway through 2026-27 the same thing: catch up records from the start of the tax year and send the overdue update as soon as possible.

What this means for you

If you joined MTD in April 2026, a late 2026-27 update will not cost you a point, but you cannot file your 2026-27 tax return until every update is in, and a late return does earn a point. Use the relief to get your records straight, not to skip updates.

If you start on 6 April 2027, treat every deadline as real from day one anyway: the updates are still due, and points for late updates start in 2028-29. One point is not a disaster, but four in two years means £200, and more after that.

If you think a point was given wrongly, for example because the update did go in on time, HMRC writes to you for each point and the letter explains how to appeal.

Steps if you have missed an update

1. Sign in to your HMRC online account and check which updates show as overdue.
2. Bring your digital records up to date from 6 April of the tax year, including any cash jobs and costs not in your bank feed.
3. Send the overdue update from your MTD software as soon as you can.
4. Put the remaining deadlines in your diary: 7 August, 7 November, 7 February and 7 May.
5. Keep an eye on your points in your HMRC online account, and use HMRC's letter to appeal any point you disagree with.

The free MTD check shows your start date. The trades section and the landlord section have more on staying on top of updates.