The MTD for Income Tax second quarterly update is due by 7 November 2026 (a Saturday, so aim to submit by Friday 6 November). It covers your cumulative income and expenses from 6 April to 5 October 2026 (or to 30 September if you use calendar quarters). It is sent through HMRC-recognised MTD software and is a summary of your digital records, not a tax return. Before submitting your digital records, verify the income, expenses, and bank transactions in them and send them through MTD-compliant software only. All the figures must be accurate and of the correct period.
Completing an MTD second quarterly update is easier than you think. Imagine you are a sole trader based in Hertfordshire. You have submitted your first MTD quarterly update in August and returned to your business as usual. After that, you have generated multiple invoices, paid your suppliers, purchased equipment, and collected rental income. When November came, you were unclear whether your records were ready for submission.
However, there is nothing to worry about. A little preparation in reviewing numbers and getting missing figures, and you will be able to submit your second quarterly update without rushing.
Here is how to prepare your records, check the figures and avoid common mistakes before the deadline.
MTD Quarterly Update Deadlines for 2026–27
| Update | Cumulative period (standard/calendar quarters) | Deadline | Notes |
| Q1 | 6 Apr–5 Jul 2026 / to 30 Jun 2026 | 7 Aug 2026 | First update (passed) |
| Q2 | 6 Apr–5 Oct 2026 / to 30 Sep 2026 | 7 Nov 2026 | This article (a Saturday) |
| Q3 | 6 Apr 2026–5 Jan 2027 / to 31 Dec 2026 | 7 Feb 2027 | |
| Q4 | 6 Apr 2026–5 Apr 2027 / to 31 Mar 2027 | 7 May 2027 | |
| Final declaration | 2026–27 tax year | 31 Jan 2028 | Replaces the tax return |
Made a Mistake in Your First MTD Update? The Second Quarterly Update Is Your Chance to Fix It
Yes, you can get the errors in your digital record corrected before it is submitted in the next update. If you have identified any incorrect figure, missing expense or a duplicate transaction, check it in your software and get it corrected before submission.
Quarterly updates contain the data of the previous periods also. For instance, the second update will have the figures from 6 April to 5 October 2026, rather than covering only the three months since your first submission.
This means you have the opportunity to review early transactions and make sure they are accurate.
Avoid making changes to match the figure with your bank balance. Keep the supporting invoice, receipt or other evidence, and ask your accountant if you are unsure whether an item is allowable.
Who Needs to Submit a Second Quarterly Update?
The first group of individuals who need to submit a MTD second quarterly update are those with qualifying income of more than £50,000 in the 2024–25 tax year.
The threshold is being phased in:
- More than £50,000: MTD for Income Tax starts from 6 April 2026.
- More than £30,000: the start date is 6 April 2027, based on 2025–26 qualifying income.
- More than £20,000: the start date is 6 April 2028, based on 2026–27 qualifying income.
These thresholds are for income (your gross income before expenses), not the profits after expenses.
MTD Second Quarterly Update Checklist: 8 Things to Get Ready
Before you even start with your MTD second quarterly update, use this checklist to make your life easier.
- Get your digital records verified and stored in your HMRC-approved MTD-compliant software.
- Search for missing invoices and receipts, especially in your emails and paper records, beforehand.
- Get all the invoices, payments received, income verified and recorded.
- Reconcile all the transactions with your bank statements and examine why the differences are occurring.
- Get all the business expenses right and in order.
- Check your first quarterly update for any mistakes, like duplicate entries, so that they can be rectified in the second update.
- See to it that your software uses standard tax-year periods or calendar quarters.
- Make sure your software is working properly, records are accurate, and that the updates are sent well before 7 November.
What Records and Figures Do You Need to Submit?
To prove that you are self-employed and receiving property income and claiming expenses, you need to have digital records. For a sole trader, these may include business purchases, sales invoices, customer receipts, supplier invoices, and other allowable expenses.
Keep records of the date, amount, description and category of each transaction, together with supporting evidence where available. Your software will use these records to calculate the totals for your update.
There is no need to send all invoices or receipts to HMRC for a quarterly update. Rather, compatible software submits the required summaries. A quarterly update is an information return only, so you do not pay tax when you send it, and you do not need to make year-end accounting or tax adjustments beforehand.
| Record or figure | What to check before submission |
| Business income | Sales invoices, receipts and other income recorded |
| Property income | Rent received and other relevant property income |
| Business expenses | Correct categories and genuine business costs |
| Property expenses | Eligible costs recorded against the property activity |
| Bank transactions | Missing, duplicated or unexplained entries investigated |
| Previous records | Earlier transactions reviewed and errors corrected |
| Quarterly summary | Totals agree with the digital records and reporting period |
Remember that not every purchase is an allowable expense, and some costs may need special treatment. If you are uncertain about an expense or an accounting adjustment, check with your accountant before submitting.
How to Submit Your Update Using MTD-Compatible Software
Start by getting HMRC-authorised and MTD for Income Tax compatible software that can maintain the required digital records and submit quarterly updates.
Then follow these steps:
- Open the second quarterly update in your software and confirm the reporting period.
- Then make sure your income and expenses are matching with your records and resolve discrepancies before continuing.
- Follow the software instructions to send the data to HMRC.
- Once the submission is done, keep a record of it and make a note of the next deadline.
Common Mistakes to Avoid
Beware of certain mistakes that commonly occur while doing the MTD second quarterly update. These mistakes can be prevented by some straightforward checks.
Submitting only the latest three-month update: The right second update is cumulative from the start of the tax year to 5 October.
Mixing up personal and business spending: Carefully review the expenses; only proper business expenses must be selected.
Forgetting rental income: If you have both property and self-employment income, check that the relevant sources are included in your digital records.
Treating the update as a tax return: A quarterly update is only a summary. You will still need to complete your final declaration and deal with adjustments, reliefs, and other income.
Leaving submission until the last day: Problems like software accessibility, missing receipts, and other surprises could delay the process, and there will be no spare time to deal with it. Always aim to finish much before the deadline so that time is there to complete your checks.
What Happens If You Miss the 7 November Deadline?
For the 2026–27 tax year, HMRC has confirmed that no penalty points will be issued for late quarterly updates (a “soft landing”). However, a late final declaration or late payment of tax can still be penalised, so you cannot ignore deadlines.
You are required to maintain digital records and submit your quarterly updates. Other deadlines will continue to apply.
In later tax years (from 2027–28 for those who joined in April 2026), a points-based system applies to late quarterly updates. Each missed deadline earns one penalty point, and a £200 penalty is charged once the threshold (four points for quarterly updates) is reached.
If you think you may miss the deadline, contact your professional accounting provider like Julian Hobbs & Co for further assistance.
Why Choose Julian Hobbs & Co for MTD Second Quarterly Update Support in Hertfordshire
Getting the MTD second quarterly update done is not as easy as clicking a submission button. You need to have accurate records, the right software, and a clear understanding of which figures belong in each update.
To avoid your accounting team getting stressed out, you can take the support of Julian Hobbs & Co. The firm has the reputation of supporting SMEs across Hertfordshire with accounting, bookkeeping and tax-related services. If you are unsure whether your records are ready, the team can discuss your accounting arrangements and help you understand the steps needed to prepare for your reporting obligations.
Whether you are new to digital record keeping or want more confidence in your existing process, getting advice from Julian Hobbs & Co early can help you avoid preventable errors and keep your records in better order throughout the year.
FAQs: Frequently Asked Questions
When is the second MTD quarterly update due?
For the 2026–27 tax year, HMRC has confirmed that no penalty points will be issued for late quarterly updates (a “soft landing”). However, a late final declaration or late payment of tax can still be penalised, so you cannot ignore deadlines.
What period does the second quarterly update cover?
The second update is cumulative. It covers your income and expenses from the start of the tax year (6 April 2026) to 5 October 2026, or to 30 September 2026 if you have chosen calendar quarters.
Do I need to submit a final declaration after the quarterly updates?
Yes. Quarterly updates are only summaries. You must still submit a final declaration (which replaces the Self Assessment tax return for MTD customers) through compatible software. For 2026–27 it is due by 31 January 2028, and it is where you make adjustments and include other income and reliefs.
Can I submit my quarterly update using a spreadsheet?
A spreadsheet may form part of a compliant record-keeping setup, but you generally need compatible software and any required digital links to submit the update. Check HMRC’s guidance and the capabilities of your software before relying on a spreadsheet-only process.
Can my accountant submit my quarterly update for me?
Yes, an accountant or tax agent can help manage your MTD obligations if the appropriate authorisation and arrangements are in place. Agree who is responsible for preparing, checking and submitting each update.
What if I forgot to submit my first quarterly update?
If you have missed out on your first quarterly update then speak to your accounting team or service provider and follow the HMRC guidelines on outstanding updates. Submit the missed update as soon as possible, then complete your second update. Always store your digital records which can be used for rectification purpose in the second quarterly update.
Although no penalty points apply to late quarterly updates in 2026–27, the reporting requirements remain.
Conclusion
Treat MTD second quarterly update as an opportunity to get your records in order before the next reporting deadline, instead of another task that needs to be done at the last minute. Get your income right, review your expenses, reconcile your transactions, and make sure you use the right software for reporting.
With the deadline set for 7 November 2026, a little preparation now can make the submission much easier and help you maintain more reliable records throughout the year.
Need help getting your records ready for MTD? Julian Hobbs & Co is here at your service across Hertfordshire with practical accounting and tax support. Contact us to discuss your records, software and next steps.
