Key takeaways
- Making Tax Digital for Income Tax means a quarterly update to HMRC, due 7 August, 7 November, 7 February and 7 May every year
- You're in from April 2026 if your qualifying income was over £50,000 in 2024/25, and from April 2027 if it was over £30,000 in 2025/26. That's income before expenses, not profit
- Each update is a running total for the tax year so far. It isn't a tax return and nothing is paid with it
- It has to go through MTD-compatible software. You can't type it into your HMRC online account
- Late updates in the 2026/27 tax year don't earn penalty points. From 6 April 2027, every late update does
MTD is no longer coming, it's here
Since 6 April 2026, sole traders and landlords over the threshold have to send HMRC an update every quarter, through software. HMRC put the first group at more than 864,000 people.
The update itself is small. HMRC says it takes minutes through recognised software, and one case study in its July 2026 announcement took about ten. The bigger question for most freelancers is whether they're in scope yet, so let's start there.
Who has to send quarterly updates
You're in scope if you're a sole trader or landlord and your qualifying income from self-employment and property was over the threshold. That's income before expenses and tax, not profit.
- From 6 April 2026: over £50,000 in the 2024/25 tax year
- From 6 April 2027: over £30,000 in the 2025/26 tax year
- From 6 April 2028: over £20,000 in the 2026/27 tax year, according to HMRC's guidance
Under £50,000 in 2024/25? Check your 2025/26 return: over £30,000 means you start on 6 April 2027. HMRC writes to people over the threshold, but checking is still your job.
Partnerships and limited companies aren't part of this rollout. If you trade as a sole trader or landlord in your own name, you're the one in scope.
What a quarterly update is
Totals for each category of business income and expense, from the start of the tax year to the end of the quarter. HMRC doesn't see individual invoices or receipts.
It isn't a tax return and nothing is paid with it. Your software can show you an estimated tax bill afterwards, which is useful for setting money aside, but payment still happens through your tax return as normal.
The four deadlines, every year
Each update is due by the 7th of the second month after its quarter ends:
- Up to 5 July (or 30 June), due 7 August
- Up to 5 October (or 30 September), due 7 November
- Up to 5 January (or 31 December), due 7 February
- Up to 5 April (or 31 March), due 7 May
Standard quarters start on 6 April. If you've picked calendar quarters in your software, they start on 1 April instead. Because each update is a running total, a correction goes into your next one, so you don't resend earlier updates.
How you send it
Through MTD-compatible software. There's no option to type it into your HMRC online account, and GOV.UK keeps a list of compatible software.
If you keep digital records as you go, this really is the ten-minute version. If your records are a shoebox of receipts, the real work is getting the quarter into software, not the sending itself.
Before each deadline
- Check you're in scope using the income figures above.
- Have MTD-compatible software in place. Spreadsheets only work if they connect through recognised bridging software.
- Make sure the year so far is recorded digitally: the amount, date and category of every item, as close to the transaction as you can.
- Send the update by the deadline. Your accountant can send it for you, but they still need your records to be current.
Keep your records ready every quarter
HelloNoa records every invoice, payment and expense as you go, so nothing is reconstructed the week before a deadline. It doesn't send anything to HMRC, so you'll still need MTD-compatible software or your accountant for that. Whether you're a designer, developer or consultant, it's the same few minutes a week.
Start for freeWhat happens if you're late
HMRC isn't giving penalty points for late quarterly updates in the 2026/27 tax year. From 6 April 2027, every late update earns a point, including for people who only join in April 2027.
Late tax returns earn points too. At four points you pay a £200 penalty, plus £200 for each late submission after that. Below four points, each point expires 24 months after the missed deadline. A slip won't sink you, but a pattern will.
The 2026/27 let-off isn't a reason to skip updates. You still have to send them, and the habits you build now are the ones you'll be running for years.
What doesn't change
You still file a tax return by 31 January after the tax year ends. Once you're in MTD, it goes through your MTD software. Quarterly updates don't replace it, they sit on top.
Watch out for payments on account, especially in your first proper year of self-employment. If last year's bill was £1,000 or more and less than 80% of your tax was collected at source, HMRC asks for two payments on account, each half of last year's bill, due 31 January and 31 July. With the balance for the year just gone also due in January, that first bill can be much bigger than you expect, so budget for it early.
The bottom line
If you're in scope, send each update by the 7th of the second month after the quarter ends, and file your tax return by 31 January. Keep your records digital as you go and every quarter takes minutes rather than a weekend.
Sources: HMRC's guidance on GOV.UK on sending quarterly updates, when you need to use MTD and penalties, checked 16 October 2026. This article is general information, not tax advice. For your specific situation, talk to an accountant.
Frequently asked questions
Is the quarterly update a tax return?
No. It's a running total of your business income and expenses for the tax year so far, sent through your software. You still file a tax return by 31 January, and once you're in MTD it goes through your MTD software.
Do I have to send updates if my income is under £50,000?
Not yet, if your qualifying income (income before expenses) was £50,000 or less in 2024/25. If it was over £30,000 in 2025/26, you start on 6 April 2027. HMRC's guidance says over £20,000 in 2026/27 brings you in from 6 April 2028.
What happens if I send a quarterly update late?
Late updates in the 2026/27 tax year don't earn penalty points. From 6 April 2027 each late update earns a point, and at four points you pay £200, plus £200 for each further late submission.
Can I send the update without software?
No. Quarterly updates must go through MTD-compatible software. GOV.UK publishes a list of compatible options.
When are the quarterly deadlines?
7 August, 7 November, 7 February and 7 May, every year. Each covers the tax year up to the end of the quarter before.
Done reading? I keep an eye on your clients, contracts and invoices, and flag what's next.
