What Happens If You Miss Your First MTD Quarterly Update?

From April 2026, many self-employed individuals and landlords are required to submit quarterly updates to HMRC under Making Tax Digital for Income Tax. Missing your first submission does not mean the requirement disappears, and it is important to act as soon as possible.

HMRC operates a points-based penalty system for late submissions. Each missed quarterly update may result in a penalty point, and once you reach the threshold for your filing frequency, a financial penalty of £200 can be charged. Additional late submissions may lead to further penalties until your compliance record is restored.

Submitting your updates on time and keeping digital records throughout the year is the best way to avoid unnecessary penalties. If you think you may miss a deadline, seek advice early rather than waiting for HMRC to contact you.