If you are a sole trader or landlord, keeping up with your income, expenses and tax dates already takes plenty of time. Making Tax Digital for Income Tax adds one more date to the diary. Your second quarterly update is due by 7 November 2026. If you have already sent your first one, now is a good time to look over your records and get the next one ready. Leave it to the last minute and it will feel much harder than it needs to.
The second of the MTD ITSA quarterly updates is due by 7 November 2026. Under the standard update periods, it covers your income and expenses from 6 April to 5 October 2026 as a running total. You must send it through MTD compatible software. Unlike a tax return, a quarterly update only reports your totals. It does not work out your final tax bill or replace your final declaration.
Making Tax Digital for Income Tax applies from April 2026 to sole traders and landlords with qualifying income of more than £50,000, subject to HMRC’s rules and exemptions. The threshold is due to fall to £30,000 from April 2027 and £20,000 from April 2028. If the rules apply to you, getting to grips with your MTD ITSA quarterly updates now will keep your records tidy and save a last-minute rush.
In this guide, you will learn when the second update is due, what to include, how to submit it, what to do if you spot a mistake and which deadlines come next.
When Is the MTD ITSA Second Quarterly Update Due?
Your first update for the 2026/27 tax year was due on 7 August 2026. If you sent it, the next deadline is coming up. If you missed it, you can still send the second update.
Second quarterly update deadline: 7 November 2026
Most people use the standard periods, so their update covers 6 April to 5 October 2026. If you chose calendar update periods, it covers 1 April to 30 September 2026 instead. The deadline stays the same either way.
Your software should show the right period and due date. Check both before you submit, especially if you have more than one source of income. HMRC’s guidance on quarterly updates is also worth a look if you want to double check your schedule.
What Period Does the Second Quarterly Update Cover?
Many people expect the second update to cover only the last three months. It does not. It is cumulative, so it includes everything from the start of the tax year up to the end of the second period.
Say you earned £8,000 between April and July and another £6,000 between July and October. Your update should show £14,000, not just the latest £6,000. Your allowable expenses work the same way and should be included in the right categories.
Before you send your update, run through these checks:
- Reporting period: Make sure your software shows the correct start and end dates.
- Digital records: Check that income and expenses for the whole period have been recorded.
- Software: Send the update through software that supports MTD for Income Tax.
You must send an update for each source of self employment and property income. If you are a sole trader with a small business and you also rent out a property, you may need to report both. Your software or your accountant can confirm what applies to you.
What Should You Include in Your Second Quarterly Update?
Your second quarterly update should show the income and expenses recorded for the period. Before you submit it, check that the figures are complete and sit in the right categories.
- Income received: Include what you have received from self employment or rental property. Check invoices, payment records and bank transactions so nothing slips through.
- Allowable expenses: Add costs that qualify for tax relief, such as supplies, software or property repairs. Keep the receipts in case you need to check a figure later.
- Rental income: Landlords should record the rent received and any eligible property costs. Keep personal spending out of these figures.
- Separate income sources: If you have both self employment and property income, record each under its own source. Do not roll everything into one total.
- Expense categories: Put each cost in the right category. It makes your figures easier to review and your year end return easier to complete.
Imagine you are a sole trader and you have been paid by several customers, but one payment never made it into your records. Your quarterly figures would come up short. A quick check of your invoices against your bank statement is usually enough to catch it.
Remember that these updates are summaries. HMRC receives totals for each category, not individual transactions. You do not normally need to make tax adjustments before sending one. Reliefs and other adjustments are dealt with later, when you complete your final declaration.
How to Prepare Your Records Before You Submit
The easiest way to handle MTD ITSA quarterly updates is to look at your records little and often. Going through three months of transactions in one evening is a lot harder.
- Keep records up to date: Enter income and expenses soon after each transaction. You are less likely to forget a payment or lose a receipt.
- Check your bank transactions: Compare your records with your statements. Look for missing payments, duplicates and amounts that do not match.
- Keep receipts and invoices: Save digital copies of anything that backs up your figures. They help if you ever need to explain a transaction.
- Separate personal and work spending: If one bank account covers both, take extra care. Only record costs that qualify under the tax rules.
- Check your software: Confirm that it can send quarterly updates to HMRC. Software you used for past Self Assessment returns may not support MTD.
- Check your sign up: You must be signed up to MTD for Income Tax before you can send updates. If an accountant sends them for you, they need your authorisation first.
A little preparation saves time when the deadline arrives. If you are unsure whether a cost is allowable or where it belongs, ask an accountant before you submit.
How to Submit Your Second Quarterly Update Step by Step
Following the right steps helps you send your update correctly and on time, which keeps you clear of problems later. Here is how it works.
- Open your MTD compatible software. Sign in and check that your details and income sources are correct before you go to the quarterly update section.
- Select the second update period. Make sure the dates match your chosen schedule. Standard periods run from 6 April to 5 October 2026.
- Review your income and expenses. Check that every transaction is recorded and in the right category. Compare the figures with your invoices, receipts and bank statements.
- Check the totals. Look at the income and expense totals your software shows. If anything looks odd, go back to your records before you carry on.
- Submit the update to HMRC. Follow the prompts in your software and wait for confirmation that it went through. Keep a copy of that confirmation.
- Save your records and plan ahead. Store your supporting documents and note the next deadline. Your third update is due on 7 February 2027, which is a Sunday, so aim to send it by Friday, 5 February.
After you submit, your software may show an estimate of your tax bill for the year so far. Treat it as a guide, not a final bill.
Try not to leave this until the final day. A bit of breathing space makes it easier to fix a software hiccup or a missing figure.
Correcting Mistakes from Your First Quarterly Update
Found an error in your first update? There is no need to panic. Because the second update is cumulative, you can correct your records and send the new totals without resending the first update.
- Find the original mistake: Look at your first update and the records behind it to spot the missing transaction or wrong amount.
- Correct your digital records: Change the entry in your software and keep the invoice or receipt that supports it.
- Review the new totals: Check that the corrected figures appear in your second update before you send it.
- Ask for help if needed: If an entry will not correct properly or a figure looks wrong, contact your software provider or accountant.
For instance, if you forgot to record an allowable expense in the first quarter, add it with the right date and category. Your second update will then show the corrected total.
What Happens If You Miss the 7 November Deadline?
Missing a tax deadline can feel worrying, especially while you are still getting used to MTD. The good news is that the first year follows different rules from the ones that will apply later.
HMRC has confirmed there are no penalty points for missing quarterly update deadlines in the 2026/27 tax year. That includes 7 November 2026. You still need to send any outstanding updates, and you must submit all of them before you can complete your final declaration through MTD software.
Imagine you are a landlord and you realise on 10 November that you have not sent your second update. Prepare it and send it as soon as you can. You will not get a penalty point for the late update this year, but leaving it open could hold you up when you reach your final declaration.
Do not mix this up with the rules for tax returns and payments. Penalties can still apply if you file your final declaration late or pay your bill after the due date. From the 2027/28 tax year, points-based penalties are due to apply to missed quarterly updates, so check HMRC’s latest guidance. If you join MTD for Income Tax in a later year, check HMRC’s guidance on when penalties start for you.
MTD ITSA Quarterly Update Deadlines 2026/27: What Comes Next
Once your second update is in, add the remaining dates to your calendar. Planning ahead beats rushing everything at the end of the tax year.
| Update | Period covered (standard periods) | Deadline | What you need to do |
| Q1 | 6 April 2026 to 5 July 2026 | 7 August 2026 | Already due |
| Q2 | 6 April 2026 to 5 October 2026 | 7 November 2026 | Send your second update with your cumulative income and expenses. |
| Q3 | 6 April 2026 to 5 January 2027 | 7 February 2027 | Review your cumulative income and expenses, then send the third update. |
| Q4 | 6 April 2026 to 5 April 2027 | 7 May 2027 | Send your last quarterly update for the tax year. |
| Final declaration | Full 2026/27 tax year | 31 January 2028 | Check your figures, add adjustments and other income, claim reliefs and submit. |
Every update is cumulative, so each period above starts on 6 April. The new stretch of time each quarter adds runs from 6 April to 5 July, 6 July to 5 October, 6 October to 5 January and 6 January to 5 April.
These dates are for standard update periods. If you chose calendar periods, the reporting periods differ, but the deadlines stay the same. See the HMRC guidance for the full timetable.
Think of a sole trader who gets very busy in December. If their records are up to date, the February update takes little effort. They then have the spring to review their figures before the final update and declaration.
Your final declaration is not the same as a quarterly update. It is where you confirm the full year’s tax position, include other income and claim any reliefs or allowances. Your 2026/27 tax bill will normally need to be paid by 31 January 2028.
Should You Use an Accountant for Your Quarterly Updates?
It can help, especially if you have more than one income source or little time for record keeping. An accountant can make your MTD ITSA quarterly updates easier and help you avoid common mistakes. They can organise your digital records, check your income and expenses, suggest suitable software and send your updates on time. They can also explain which deadlines apply to you.
Picture this. You are a sole trader with several customers and very little time for paperwork. You record most payments correctly, but a few expenses go missing and some costs land in the wrong category. An accountant can review your records, fix the errors and make sure you know what needs reporting.
The same goes for landlords with more than one property or several types of property cost. Support through the year keeps your records in order and makes the final declaration less stressful. You are still responsible for the accuracy of your figures, but you do not have to work through every question alone.
Need Help With Your MTD ITSA Quarterly Updates?
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FAQs: Frequently Asked Questions
What is the deadline for the second MTD ITSA quarterly update?
It is 7 November 2026. Under standard periods, it covers income and expenses from 6 April to 5 October 2026.
Is the second quarterly update cumulative?
Yes. It includes figures from the start of the tax year to the end of the second period. You do not need to resend your first update.
What happens if I miss the 7 November 2026 deadline?
HMRC will not issue penalty points for late quarterly updates in 2026/27. Send the update as soon as you can, because all updates must be in before your final declaration.
Do I need MTD compatible software to submit my update?
Yes. If MTD for Income Tax applies to you, you need compatible software to keep digital records and send updates. Check with your provider that it supports the required submissions.
Is a quarterly update the same as a tax return?
No. A quarterly update reports totals for income and expenses. You must also complete a final declaration, including adjustments, other income and reliefs.
What if I missed my first quarterly update on 7 August 2026?
Don’t worry, you can still catch up. Your second update is cumulative, so it picks up everything from 6 April 2026 onwards. HMRC isn’t handing out penalty points for late quarterly updates this tax year either. Have a look in your software, as some ask you to send the missed update first. If yours does, just follow what it tells you.
Who has to use MTD for Income Tax in 2026/27?
It comes down to your income. If you’re a sole trader or landlord and your self-employment and property income was over £50,000 in 2024/25, you’re in. The limit drops to £30,000 in April 2027, then to £20,000 in April 2028. Limited companies aren’t affected. A few people can claim an exemption, so it’s worth checking HMRC’s latest guidance.
How do you calculate qualifying income?
Qualifying income is your total income from self-employment and property before you take off any expenses. Add up what you reported for the tax year. Wages from a job, dividends and savings interest do not count. If you own a property jointly, only count your share of the rent.
Do I still need to send an update if I had no income or expenses in a quarter?
Yes. You still need to send an update for each income source, even if nothing happened in that period. Your software will usually let you confirm that income and expenses were zero, which is often called a nil update.
Conclusion
The 7 November 2026 deadline matters for eligible sole traders and landlords. Check your records, make sure your income and expenses are up to date, and confirm that your software can send the figures to HMRC. Remember that the second update is cumulative, so it runs from the start of the tax year to the end of the second period.
You do not have to wait until a deadline is close to sort your records. Regular checks help you find missing entries, fix mistakes and make each update quicker. Keeping the next dates in view will also prepare you for your third and fourth updates and your final declaration.
Need help with your MTD ITSA quarterly updates? MyIVA supports sole traders, landlords and small business owners with digital records, quarterly reporting and MTD tax filing. If you want help understanding your responsibilities or getting ready for the next deadline, contact the MyIVA team to talk through the support you need.
