I have missed a quarterly update — what happens now?

Checked against GOV.UK on 14 August 2026

Short answer
Send it. For 2026 to 2027 there are no penalty points for a late update — but you cannot file your tax return until the updates are in.

A missed update in the first MTD year is recoverable and, in penalty terms, free. What it is not is optional.

What to do

  1. Send the update through your compatible software now. Because updates are cumulative from the start of the tax year, a late one brings you back up to date in a single submission.
  2. Check your digital records are accurate first — especially anything imported from a bank feed, which may need the category added or a missing transaction created.
  3. Carry on with the next deadline as normal.

What it costs

For the 2026 to 2027 tax year, HMRC will not apply penalty points for late quarterly updates. HMRC's own August 2026 statement said customers who had not yet sent their first update could do so with no penalty for late updates this year. From the 2027 to 2028 tax year a missed update deadline gives you one penalty point, and £200 is charged at four points.

The part that is not waived

You will need to send your quarterly updates before you are able to submit your tax return. The concession removes the penalty, not the obligation.

If you have not signed up at all

HMRC said in August 2026 that from September 2026 it would begin signing up, in stages, customers who need to use MTD for 2026 to 2027 but have not done so. Signing up yourself first means you choose the software and check the details.

Sign up → See your remaining deadlines →

Sources

General information about UK tax rules, not tax advice. Your own circumstances and HMRC's official guidance govern your position. If you are unsure, speak to an accountant or contact HMRC. Tax rules change — if this page is more than a few months old, check the GOV.UK pages linked above. Found an error? Email hello@getaxionlabs.com and we will correct it.

← All Making Tax Digital answers