{"id":1445,"date":"2026-10-29T12:08:58","date_gmt":"2026-10-29T12:08:58","guid":{"rendered":"https:\/\/www.bsassociate.co.uk\/blog\/?p=1445"},"modified":"2026-10-29T12:09:19","modified_gmt":"2026-10-29T12:09:19","slug":"hmrc-letter-missed-mtd-quarterly-update","status":"publish","type":"post","link":"https:\/\/www.bsassociate.co.uk\/blog\/hmrc-letter-missed-mtd-quarterly-update\/","title":{"rendered":"Got an HMRC Letter About a Missed MTD Quarterly Update? Check These Things First\u00a0"},"content":{"rendered":"\n

HMRC has started writing to sole traders and landlords who missed their first Making Tax Digital quarterly update. The letter is a reminder, not a fine. It can also reach people who did file something in August, because HMRC\u2019s wording refers to all your self-employment and property businesses, not just one. If you have both kinds of income, one missing update is enough. <\/p>\n\n\n\n

This guide is for people in the first MTD group: those whose 2024\/25 tax return showed qualifying income above \u00a350,000. HMRC defines qualifying income<\/a> as your total turnover from self-employment and property before expenses. It explains why the letter may have arrived, what to check, and what to send before the next deadline on Saturday 7 November 2026. <\/p>\n\n\n\n

Quick answer:<\/strong> The letter is a reminder, not a penalty. For 2026\/27, HMRC will not apply penalty points<\/a> for late quarterly updates, but you are still legally required to send them, and they must be sent before you can submit your 2026\/27 tax return. Check that every self-employment and property business has an update, bring your digital records up to date, and send the next update by 7 November. From 2027\/28, each missed deadline earns one penalty point, and four points bring a \u00a3200 penalty. <\/p>\n\n\n\n

Why HMRC may say you missed an update when you filed one<\/strong> <\/h2>\n\n\n\n

HMRC expects a separate quarterly update for each self-employment and property business you have. Its guidance and its reminder letter use the same example: someone who is self-employed and also has a property business must send an update for each. The letter says HMRC did not receive update information for all of your businesses by 7 August 2026, so a single gap can trigger it. <\/p>\n\n\n\n

One update, two income sources<\/strong> <\/h3>\n\n\n\n

The most likely cause is sending an update for your trade but not your rental property, or the other way round. In your software it can feel like one job. In HMRC\u2019s system it is two obligations, and the letter is triggered if either is outstanding. <\/p>\n\n\n\n

A quiet period still needs an update<\/strong> <\/h3>\n\n\n\n

HMRC states that if you had no income and no expenses in an update period, you must still send the update so HMRC knows. If one of your businesses had a quiet spell and you skipped it, that business may still show as outstanding. <\/p>\n\n\n\n

When something looks wrong<\/strong> <\/h3>\n\n\n\n

If you think HMRC\u2019s record of your businesses is wrong, don\u2019t guess. The letter says you can view your obligations through your HMRC online account. Check there first, then speak to your accountant or agent or contact HMRC before changing anything. <\/p>\n\n\n\n

\"HMRC<\/figure>\n\n\n\n

What the letter asks you to do, and what it does not<\/strong> <\/h2>\n\n\n\n

HMRC\u2019s October 2026 reminder letter says that if you have not yet acted, you should create digital records for the first three months of the 2026\/27 tax year using compatible software, and send your quarterly update as soon as possible. It then asks you to keep to the later deadlines of 7 November, 7 February and 7 May. If you use an accountant or agent, it says to speak to them first and give them a copy. <\/p>\n\n\n\n

It does not charge you anything. HMRC\u2019s penalties guidance<\/a> says there are no penalties for missing a quarterly update deadline in 2026\/27. You still need to keep digital records and send the updates before you can submit your tax return. Penalty points still apply to late tax returns. <\/p>\n\n\n\n

Do you have to send the first update separately?<\/strong> <\/h2>\n\n\n\n

HMRC explains<\/a> that each update covers the tax year so far, starting on 6 April, not only the latest three months. You can send an update at any time after its update period ends, up to and including the deadline. <\/p>\n\n\n\n

The period for your second update has already ended. On standard periods it runs from 6 April to 5 October, and on calendar periods from 1 April to 30 September. So you can send it now rather than waiting for deadline day. Because updates are cumulative, the later figures include the earlier period. <\/p>\n\n\n\n

HMRC\u2019s published guidance doesn\u2019t spell out whether a later update closes an earlier open obligation automatically. So after sending, check your obligations in your HMRC online account. If the first period still shows as outstanding, ask your agent or contact HMRC. If your first-period records are ready, sending the first update on its own is the most direct way to clear it. <\/p>\n\n\n\n

An illustration: Sam, the consultant with a rental flat<\/strong> <\/h2>\n\n\n\n

This is a made-up example, not a real client.<\/em> <\/p>\n\n\n\n

Sam is a London consultant who also lets one flat. In August, Sam sent an update for the consultancy but not for the rental. In late October, a letter arrives. <\/p>\n\n\n\n

Sam signs in to the HMRC online account and sees that the property business still has an open obligation. Sam brings the rental income and expenses up to date, then sends updates for both businesses covering 6 April to 5 October. Sam then checks that each obligation shows as met. <\/p>\n\n\n\n

What to do this week<\/strong> <\/h2>\n\n\n\n
    \n
  1. Find the letter and show it to your accountant.<\/strong> HMRC asks agent-represented taxpayers to speak to their agent first.\u00a0<\/li>\n<\/ol>\n\n\n\n
      \n
    1. List your businesses.<\/strong> Write down each self-employment and property business you have, including any that are quiet.\u00a0<\/li>\n<\/ol>\n\n\n\n
        \n
      1. Check your obligations.<\/strong> Sign in to your HMRC online account<\/a> and see which update HMRC says is outstanding.\u00a0<\/li>\n<\/ol>\n\n\n\n
          \n
        1. Bring your digital records up to date for each business.<\/strong> HMRC says each record needs<\/a> the amount, the date and the category, using the same categories as Self Assessment.\u00a0<\/li>\n<\/ol>\n\n\n\n
            \n
          1. Send an update for every business.<\/strong> Aim for Friday 6 November, and treat Saturday 7 November as a safety net. Our step-by-step submission guide<\/a> walks through the process.\u00a0<\/li>\n<\/ol>\n\n\n\n
              \n
            1. Confirm and keep a note.<\/strong> HMRC says your online account shows \u201cYou sent a quarterly update\u201d afterwards. Note the date, and check that no obligation still shows as open.\u00a0<\/li>\n<\/ol>\n\n\n\n

              What is paused in 2026\/27 and what is not<\/strong> <\/h2>\n\n\n\n
               <\/td>2026\/27 tax year<\/strong> <\/td>2027\/28 tax year<\/strong> <\/td><\/tr>
              Late quarterly update <\/td>No penalty points, but updates must be sent before the tax return <\/td>One point per missed deadline; at four points, a \u00a3200 penalty <\/td><\/tr>
              Late tax return <\/td>Penalty points still apply <\/td>Penalty points apply <\/td><\/tr>
              Late payment <\/td>Separate late payment penalties and interest apply <\/td>Separate late payment penalties and interest apply <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

              A year without penalty points is a cheap chance to build the routine. It is not a reason to put updates off. Four slips are worth avoiding: <\/p>\n\n\n\n