Making Tax Digital: the 7 November quarterly update, step by step

If you are a sole trader or landlord with qualifying income above £50,000, the second Making Tax Digital for Income Tax quarterly update is due by 7 November 2026. That is this Saturday. This post explains what the update is, what goes in it and what to do if you are still not set up.

Who has to do this now

According to GOV.UK, Making Tax Digital (MTD) for Income Tax applies to sole traders and landlords who are registered for Self Assessment. Your start date depends on your qualifying income, which is your total self-employment and property turnover before expenses, taken from your previous tax return. The dates are:

• Over £50,000: from 6 April 2026
• Over £30,000: from 6 April 2027
• Over £20,000: from 6 April 2028

So if your turnover was lower, you have more time. If you are above £50,000, you are already in scope this tax year.

What the 7 November update covers

The update covers the period 6 July to 5 October if you use standard periods. If you chose calendar periods, it covers up to 30 September. HMRC says you can send an update from the end of the period until the deadline.

The key point is that updates are cumulative. Each one shows year-to-date totals from 6 April, not just the latest quarter. If you spot a mistake in an earlier quarter, it is picked up in the next update, so a slip does not need a panic.

You send totals for each income and expense category, for each self-employment and property business. You do not send individual receipts or invoices, and you do not need to make accounting or tax adjustments first. If you had no income or expenses in the period, you still have to send an update.

What happens if you missed August

You were not alone. Which? reports that over 800,000 sole traders and landlords faced the first deadline on 7 August 2026, and nearly half may have missed it. It quotes HMRC figures of 436,000 people submitting a first update, out of 864,000 expected to follow the rules.

The practical news is calmer than the headlines. GOV.UK says there are no penalty points for late quarterly updates in the 2026 to 2027 tax year. From the following year, each missed deadline earns one late submission point, and at four points there is a £200 penalty. That amnesty only covers quarterly updates: late tax returns can still earn points, and late payments can still be penalised.

You do still need to send the updates you missed, because GOV.UK says they must be sent before you submit your return. Which? advises sending any outstanding update as soon as possible, and not filing a nil return as a placeholder, because that causes problems to correct later.

If you have not signed up yet

GOV.UK says that from September 2026 HMRC will start signing up people who need MTD for 2026 to 2027 and have not done it themselves. The simplest route is to sign up yourself using the Government Gateway user ID you used for Self Assessment. You may be asked to prove your identity with an app, using a passport or driving licence. An accountant can also sign you up as an agent.

You will need your business start date, business name as used on invoices, business address and nature of trade. If you have several income sources, check each is listed.

Software: the part many owners get stuck on

HMRC does not supply the software. You need compatible software, either one all-in-one product or several that work together. GOV.UK says spreadsheets can still hold your records, but you will need bridging software to send the quarterly updates and submit your return. HMRC does not recommend products, so compare a few against your own needs.

Each record needs an amount, a date and a category, using the same categories as Self Assessment. Which? suggests logging income and expenses daily or weekly rather than leaving it to year end. One taxpayer it quotes, a builder of more than 20 years, found the routine "fairly simple" and said it reduced his accountant's workload. Another, a landlord, found choosing software hard and leaned on family for the first update. Give yourself time to choose.

What to do this week

• Check your qualifying income from your last return against the thresholds above.
• Confirm you are signed up, and that your software is connected to your HMRC account.
• Gather income and expenses from 6 April to 5 October (or 30 September for calendar periods) into your software, by category.
• Send the update before 7 November. Check the totals first, since they are year to date.
• Send any missed August update too, if you have not already.
• Put 7 February 2027 and 7 May 2027 in your diary. These are the next two quarterly deadlines.

Making the records easier

The real cost of MTD is not the quarterly send, it is the habit of keeping records tidy all year. If your sales come through a website or ordering system, check whether it can export figures by category in a format your accounting software accepts. Where it cannot, a small automation that moves sales data into your records can save hours each quarter. Ask your software supplier what it already connects to before building anything.

The short version

If you are above £50,000, the 7 November update is a summary of year-to-date totals, sent through compatible software. Missing it in 2026 to 2027 does not earn penalty points, but the updates still need sending, and the penalty regime tightens after this tax year. Get signed up, choose software, and build a weekly record-keeping habit now. For anything specific to your circumstances, speak to your accountant or check GOV.UK.