MTD Knowledge Base

Missed the 7 August MTD deadline? Here's what actually happens

The short answer

If you missed yesterday's 7 August 2026 deadline for your first Making Tax Digital quarterly update, no penalty points are coming. HMRC has confirmed a soft landing for the entire 2026/27 tax year: no penalty points will be issued for late quarterly updates during this first year, no matter how many you miss.

No letter demanding money. No immediate fine. A clean slate going into next year.

That is not the same as saying the obligation has gone away. It hasn't. But the consequences are far smaller than some posts circulating today suggest.

What the soft landing actually covers

During the 2026/27 tax year, no penalty points will be issued for late quarterly updates. This means that even if you miss one — or all four — of your quarterly deadlines in this first year, you won't receive penalty points.

Miss one, miss two, miss all four — you enter 2027/28 with a clean slate.

This applies to the April 2026 cohort only — sole traders and landlords with qualifying income above £50,000. It applies only to the 2026-27 tax year, not to an individual's first year of MTD. Therefore, if you join MTD in 2027-28 because your qualifying income exceeds £30,000, penalty points will apply from your first quarterly update.

What the soft landing does NOT cover

Three things still apply in full, and mixing them up is how people get into trouble:

1. The final declaration. The soft landing does not apply to your digital tax return. If you submit your 2026/27 digital tax return late — after 31 January 2028 — penalty points may apply under the standard rules.

2. Late payment penalties. The soft landing also does not protect against late payment penalties, which operate on a separate regime. Your 2026/27 tax is still due by 31 January 2028 regardless of quarterly filing.

3. Non-digital records. If you're not keeping digital records at all, that's a separate issue with its own penalty regime — up to £3,000 per quarter.

The obligation hasn't disappeared — it's stacked

The work doesn't disappear — it stacks. Updates are cumulative: the Q2 update due 7 November 2026 covers 6 April to 5 October.

This is actually good news if you missed Q1: the cumulative method means each update runs from the beginning of the tax year to the end of the relevant period. Your Q2 submission will include Q1's figures automatically. You don't file Q1 separately — you catch up in Q2, and the figures are complete.

Send Q1 as soon as you can anyway. The soft landing is a one-year grace period, not a permanent exemption, and HMRC expects genuine engagement with the system, not indefinite delay.

The point-based system from 2027/28

From the 2027/28 tax year onwards, the points-based penalty system kicks in fully. Each late quarterly update earns a penalty point. Hit four points, and HMRC issues a fixed £200 penalty. Every additional missed deadline after that triggers another £200 fine.

So the soft landing isn't just a free pass — it's a year to build the habit before the system bites.

What to do if you haven't sent Q1 yet

1. Send it as soon as your records are ready. No penalty for being late in 2026/27, but you must send all four quarterly updates before you can submit your final declaration in January 2028.
2. If your software isn't set up, set it up now — not before Q2 in November.
3. If you're not sure whether you're even in scope, check GOV.UK's qualifying income guidance or ask your accountant.

The 7 November deadline for Q2 is the one to focus on now. Use the time between now and then to get your records clean.

Where TidGo fits

TidGo collects receipts, income proof and CIS payslips as they happen, so your records are ready before the next quarterly deadline rather than scrambled together the night before. It doesn't submit to HMRC — that part goes through your accountant or MTD-compatible software. It just means the records exist when you need them.