Making Tax Digital: this Saturday's deadline, and who's next
Quarterly update #2 is due Saturday 7 November. Plus: who joins MTD from April 2027.
If you're a sole trader or landlord with income over £50,000, your second quarterly update is due by Saturday 7 November. And if you're over £30,000, your turn starts in April 2027.
Hi there. No Budget talk this week, I promise. Instead, a quick one on Making Tax Digital for Income Tax (MTD), because the second quarterly deadline lands this Saturday and plenty of people are still a bit fuzzy on what it actually involves.
Yes, the deadline's on a weekend. HMRC knows. They've even put the phones on.
If you're already in (income over £50,000)
- What's due by 7 November: Your second quarterly update. Updates are cumulative, so this one covers 6 April to 5 October 2026 (or 1 April to 30 September if you chose calendar quarters).
- It's not a tax return: It's a short summary of your self-employment and property income and expenses, sent from your software. No tax calculation and no payment is due when you send it.
- Spotted a mistake from the summer? Don't resend the old update. Fix the record in your software and the correction flows into this one.
- Missed August? Send it now. There are no penalty points for late quarterly updates in 2026 to 2027, but you still have to send them all before you can file your tax return. Points-based penalties start from 2027 to 2028.
- Stuck on the day? HMRC's Self Assessment helpline is open on Saturday 7 November from 9am to 3pm. HMRC's advice (and mine) is to send it before then.
If you're over £30,000: April 2027 is your year
- Who joins next: Sole traders and landlords with qualifying income over £30,000 must use MTD from 6 April 2027. Over £20,000 follows from 6 April 2028.
- What counts: Qualifying income is your self-employment and property income before expenses (turnover), not profit. HMRC uses your 2025 to 2026 tax return, the one due by 31 January 2027, to decide whether you're in from April 2027.
- What doesn't count: Salary through PAYE, dividends (including from your own company), pensions and your share of partnership profits. If you trade through a limited company, the company isn't in MTD for Income Tax. A rental flat or side hustle on top could still put you in, though.
- Don't wait for the letter: HMRC writes to people it thinks are over the threshold, but it's still your responsibility to check and sign up.
Do and don't
Do
- Add up your self-employment and property turnover for 2025 to 2026 now, before you file in January.
- Get your bookkeeping into HMRC-recognised software early. Xero is recognised for MTD for Income Tax (Xero says its quarterly filing is currently in beta, subject to eligibility), and bank feeds do a lot of the heavy lifting.
- Put the 7s in your diary: 7 August, 7 November, 7 February and 7 May.
Don't
- Judge it on profit. A £35,000 turnover with £20,000 of costs still counts as £35,000.
- Treat the quarterly update like a tax bill. Nothing is paid when you send it.
- Leave it until March 2027. Picking software, connecting bank feeds and tidying categories is much easier with a few months' practice.
Key dates
- 7 Nov 2026: Second quarterly update due (income over £50,000).
- 31 Jan 2027: 2025 to 2026 Self Assessment return and payment due. This return decides who joins MTD in April 2027.
- 7 Feb 2027: Third quarterly update due.
- 6 Apr 2027: MTD starts for qualifying income over £30,000.
- 7 May 2027: Fourth quarterly update due.
- 6 Apr 2028: MTD starts for qualifying income over £20,000.
One more thing for company directors
Companies House identity verification has a 12-month transition period that started on 18 November 2025. Existing directors need to verify and give their personal code with the company's next confirmation statement, and Companies House won't accept the statement until every director is verified. Your own due date is shown on the Companies House register, so it's worth a two-minute check. See the GOV.UK guidance.
So, are you already sending quarterly updates, or is April 2027 your year? Hit reply and tell me. If you'd like us to check your numbers or get you set up in Xero, give us a call.
Call or WhatsApp Adam on 0161 511 2143 or email adam@meetenso.co.uk.
Speak soon,
Adam
Founder, Enso Accountants
Sources: HMRC, 2 November 2026, who needs to use MTD, qualifying income, MTD penalties and Xero MTD. General information, not personal advice. Rules and dates are correct at the time of writing (4 November 2026) and may change.
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