What happens if my software fails to send a Making Tax Digital quarterly update?

If HMRC never received it, the update is unsent. A late update can earn a point from 2027-28 (2028-29 if you join in April 2027), but a software or HMRC failure may be a reasonable excuse if you send promptly.

Making Tax Digital for Income Tax (MTD) means your software sends HMRC a quarterly update: running totals of your income and costs for the tax year so far. Software, internet connections and HMRC's own systems can all fail on the day. This page covers what that means and what to do, following GOV.UK and the Finance Act 2021 as checked on 19 October 2026.

How to tell an update has gone

Pressing send is not proof. GOV.UK says that after you send a quarterly update, the recent activity in your HMRC online account will say "You sent a quarterly update". Sign in with the details you used when you signed up for MTD. If that line is missing, treat the update as not sent, whatever your software seemed to do.

You can send an update any time after its period ends, up to and including the deadline day. GOV.UK also lets you send it up to 10 days before the period ends if you do not expect to record any further transactions:

If you use calendar periods ending 30 June, 30 September, 31 December and 31 March, the deadlines are the same. In our reading, sending a few days early leaves time to try again if something goes wrong.

If it will not send

Try again later the same day, then check HMRC's MTD service availability and issues page, which lists planned downtime and known problems. When we checked it on 19 October 2026 it said "Full service available".

If HMRC's service looks fine, the problem may be your software or connection. GOV.UK says HMRC cannot advise on specific software products, so contact your provider directly.

Keep evidence as you go: screenshots of error messages, and the date and time of each attempt. GOV.UK says that if you could not file because of computer problems, your appeal should include the date you tried to file online and details of any system error message.

Will a failed send earn a penalty point?

That depends on the tax year and whether you have to use MTD.

If you join MTD on 6 April 2027, the 2026-27 relief does not cover you, but at the Budget on 28 October 2026 the government said you will get no penalty points for late 2027-28 quarterly updates either. The updates must still be sent, and the earliest a late one can earn a point is 7 August 2028. You get only one point per deadline, even with two businesses. At 4 points HMRC charges a £200 penalty, and £200 for each further missed deadline. Below 4, each point is removed 24 months after the missed deadline.

A late update still has to be sent: GOV.UK says you need to send your quarterly updates before you can submit your tax return using software.

When software failure counts as a reasonable excuse

Schedule 24 to the Finance Act 2021 sets out the penalty point rules, and paragraph 2 brings quarterly updates within them. Paragraph 19 says no point arises if you satisfy HMRC, or a tribunal, that you had a reasonable excuse.

GOV.UK's list of what may count includes "your computer or software failed while you were preparing your online return" and "issues with HM Revenue and Customs (HMRC) online services". It also says: "You must send your return or payment as soon as you're able to." The law is similar: once the excuse ends, you keep it only if the failure is put right without unreasonable delay. Finding "the HMRC online system too difficult to use" and not getting "a reminder from HMRC" will not be accepted.

If an agent or bookkeeper sends your updates

GOV.UK says main and supporting agents can both send quarterly updates for you. In our reading the duty stays yours, and so does any point. Paragraph 19 says relying on someone else is not a reasonable excuse unless you took reasonable care to avoid the failure. GOV.UK's list of what may count includes "you relied on someone else to send your return, and they did not", so in our reading, show you gave them your records in time and checked progress.

What this means for you

A failed send in 2026-27 costs no point, but the update must still go in. Once late updates can earn points, a genuine software or HMRC failure may excuse a late update, but only if you send it without unreasonable delay once the problem ends. HMRC writes to you for each point and the letter explains how to appeal; GOV.UK says you usually have 30 days from the date a penalty was issued. Our guide on appealing an MTD penalty explains the process.

Steps if your update fails to send

1. Sign in to your HMRC online account and check recent activity for "You sent a quarterly update".
2. Screenshot any error message and note the date and time.
3. Try again later the same day.
4. Check HMRC's MTD service availability and issues page.
5. If HMRC's service is working, contact your software provider.
6. Send the update as soon as it works, then check your HMRC account again.
7. If a point arrives, appeal using HMRC's letter, with your evidence and dates.

The free MTD check shows when MTD starts for you. The trades section and the landlord section have more on quarterly updates.