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Missed the 7 August MTD deadline? Points, penalties, what to do

If the first Making Tax Digital for Income Tax quarterly update (6 April – 5 July) slipped past 7 August, here's the honest picture — including the first-year grace that means it's very likely fine — and exactly what to do next. Educational only, not tax advice; verify against GOV.UK.

By Max Lloyd · UK sole traderHow we assessChecked 27 July 2026

The good news first: the 2026/27 soft landing

HMRC has confirmed a soft landing for the first year: no late-submission penalty points for quarterly updates during 2026/27 for the first wave mandated from April 2026. So a late first update this year should not cost you points. You still need to send it — the obligation doesn't go away — but the pressure is lower than it feels.

How the points system works (after the grace period)

  • One point per missed quarterly deadline — it's points, not an instant fine.
  • Hit the threshold (four points for quarterly filers) and a £200 penalty applies, then £200 for each further miss while you're at the threshold.
  • Points expire automatically after 24 months if you stay below the threshold.
  • Late payment penalties are a separate regime — see the full breakdown in our deadlines & penalties guide.

What to do now

  1. Send the missed update as soon as you can from your HMRC-recognised software — filing late still counts, and points age off.
  2. Diarise the rest: 7 November, 7 February, 7 May, plus the 31 January final declaration. The deadline checker gives you your next date.
  3. Fix the cause, not just the symptom: the reason updates get missed is records that aren't ready. A 30-minute weekly habit removes the January-and-quarter-end panic.
  4. If you had a genuine reason for lateness, read GOV.UK's reasonable-excuse guidance before assuming a penalty stands.

FAQ

I missed the 7 August MTD update — am I fined?
For 2026/27, no. HMRC has confirmed a soft landing with no late-submission penalty points for quarterly updates in the first year for the first wave. You should still send the missed update as soon as you can. Always check current GOV.UK guidance for your position.
How does the MTD penalty system work once the grace period ends?
It's points-based, not an instant fine. You get one point per missed quarterly deadline; at the threshold for your filing frequency (four points for quarterly filers) a £200 penalty applies, then £200 for each further miss while at the threshold. Points below the threshold expire automatically after 24 months.
What should I do right now if I've missed it?
Send the update as soon as possible from your HMRC-recognised software — filing late still counts, and points age off. Then diarise the remaining deadlines (7 Nov, 7 Feb, 7 May) so it doesn't repeat. If you have a genuine reason for lateness, check GOV.UK's reasonable-excuse guidance.
Does missing a quarterly update change what tax I pay?
No. Quarterly updates are information, not payments. Your tax and payment dates (31 January balancing payment, and payments on account if they apply) are unchanged. Missing an update is a filing matter, not a payment one.

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Educational only — not tax, legal, or financial advice. Penalty rules and the soft-landing terms can change — verify against official HMRC guidance. This page carries no affiliate links. Checked 27 July 2026.