Missed the Making Tax Digital Deadline? Here’s What You Should Do Now

Did you miss the 7 August Making Tax Digital (MTD) deadline? You’re not alone. More than half of the landlords and sole traders who were required to join MTD for Income Tax had still not registered when the deadline for filing the first quarterly update passed.

Also, HMRC’s 12-month MTD soft landing period means you won’t receive late-filing penalty points for missing quarterly updates during 2026/27. So, there’s no need to panic. But there is a need to act.

This article explains what that action should entail

What Actually Was the 7 August Making Tax Digital Deadline?

The 7 August 2026 deadline was the first quarterly filing deadline under Making Tax Digital (MTD) for Income Tax. It was the point by which landlords and sole traders in the first wave were expected to have registered for MTD, kept their records digitally and submitted their first quarterly update covering the period from 6 April to 5 July 2026.

That first deadline affected roughly 864,000 landlords and sole traders. Yet the majority were not ready when it arrived. According to the ACCA, drawing on HMRC figures, only about 400,000 of the approximately 850,000 affected taxpayers had registered by the deadline. More than half, therefore, had still not registered for MTD when the first quarterly filing deadline passed.

That level of non-compliance was not entirely surprising. MTD requirements are more than simply signing up to an HMRC service. The legal framework, established by the Finance (No. 2) Act 2017 and the Income Tax (Digital Requirements) Regulations 2026, requires taxpayers within MTD to keep digital records and use compatible software to send HMRC a quarterly summary of their property and self-employment income and expenses. The 7 August deadline was the first point at which those new obligations had to be put into practice.

Did You Get Lucky with the “Soft Landing”?

Not quite. The MTD soft landing for 2026/27 only removes late-submission penalty points for quarterly updates. It does not remove your other MTD obligations. You still need to register for MTD, keep digital records and submit your quarterly updates. Your normal tax payment deadlines also remain unchanged, so interest can still apply if you pay your tax late.

The distinction matters because the term “soft landing” can make the first year of MTD sound more relaxed than it actually is. HMRC has confirmed that it will not issue late-submission penalty points for quarterly updates during 2026/27, giving taxpayers some breathing room as they adapt to the new system. It has not, however, suspended the underlying requirements.

ACCA has similarly warned landlords and sole traders not to treat the soft landing as “a free pass.” The concession is specifically about the late-submission penalty points. It does not allow you to delay registration, stop keeping digital records or ignore your quarterly reporting obligations.

To put it simply, the soft landing gives you more time to get used to MTD, but it does not give you permission to opt out of it.

Can You Submit a Nil MTD Update & Correct It Later?

Yes. HMRC’s ‘Send Quarterly Updates’ guidance states you must still submit a quarterly update even if you have not received any income or incurred any expenses during the period. The same guidance also says that quarterly updates are summaries, not tax returns, and that you do not need to make accounting or tax adjustments before sending them.

However, that does not mean you can put whatever figures you like into the update and fix them later. HMRC’s ‘Create Digital Records’ guidance states, “It is your responsibility to check and make sure your digital records are accurate before sending your quarterly update to HMRC.” At the same time, HMRC expressly allows records to be corrected after an update has been submitted.

So, a quarterly update does not have to contain your final tax position for the year. HMRC treats quarterly updates as summaries of your digital records, not as final tax returns, and allows errors or certain missing information to be dealt with later. What you cannot take from this is permission to knowingly submit inaccurate figures simply to create the appearance of compliance. HMRC’s requirement that your digital records are accurate before submission still applies.

Are You a Non-Resident Landlord? You May Be Off the Hook Until 2027

There is more nuance to this than the title suggests, though. HMRC has automatically deferred taxpayers who filed the residence pages, i.e., form SA109, with their 2024/25 Self Assessment Tax Return. Those taxpayers are not required to join MTD for Income Tax for the 2026/27 tax year.

This means many non-resident landlords are not part of the first MTD wave, even where their UK property income would otherwise put them above the £50,000 threshold.

There is another situation that can affect non-resident landlords. HMRC says that taxpayers who do not have a National Insurance number before the start of the tax year cannot sign up for MTD for that year and are exempt from MTD for that tax year. This may apply to some landlords living overseas, but it is not the same as saying that every non-resident landlord is automatically exempt or deferred.

That distinction matters where circumstances are less straightforward. You might live overseas but have a UK National Insurance number, own both UK and overseas property, or have your UK lettings managed by an agent. Being a non-resident landlord is therefore not, by itself, enough to establish your MTD position. Your 2024/25 Self Assessment Tax Return, residence status and other circumstances need to be considered together.

Conclusion

If you missed the 7 August 2026 MTD deadline, the first thing to understand is that it is not the end of the world. The deadline may have passed, but you have not missed your chance to get compliant.

Register for MTD if you have not already, get your digital records up to date and submit the outstanding quarterly update. Make sure the information is accurate and correct anything you discover needs changing.

Before taking those steps, however, check that you are actually in scope. Some taxpayers, including certain non-resident landlords who filed SA109 with their 2024/25 return, have been deferred until April 2027.