Hundreds of thousands of UK taxpayers face a new HMRC reporting deadline on November 7, under rules requiring quarterly income updates. The system introduces potential £200 penalties, although a first-year exemption protects taxpayers from fines for late quarterly submissions.
A New November Deadline for Self-Employed Workers and Landlords
The changes form part of Making Tax Digital (MTD) for Income Tax, which took effect on April 6, 2026, for self-employed workers and landlords with qualifying annual income exceeding £50,000.
Approximately 864,000 taxpayers fall within the initial rollout, according to Express.co.uk. They must maintain digital financial records and submit four quarterly updates each tax year through compatible software.
The first deadline fell on August 7, covering income and expenses from April 6 through July 5. The second arrives on Saturday, November 7.
These submissions summarize income and expenses rather than constitute full tax returns. HMRC says the updates can take only minutes to complete when digital records are maintained.
Craig Ogilvie, HMRC’s Director of Making Tax Digital, said: “Customers can send their update any time before 7 November and I would encourage them to do so as early as possible to ensure they have everything in place before the deadline.”
How the £200 Penalty System Works
The new system replaces immediate fixed late-filing penalties with penalty points that accumulate when taxpayers miss submission deadlines.
The Institute of Chartered Accountants in England and Wales explains:
“The new late submission penalties are points based. If the submission frequency is annual, once the taxpayer reaches two points, they will be charged a £200 penalty. A further £200 penalty will be charged if another annual tax return is submitted late.
“Once a taxpayer is mandated to use MTD income tax and is required to make quarterly submissions, a £200 penalty is applied once they have received four points.”
This distinction means quarterly filers generally reach the £200 penalty threshold after four points, rather than two for annual filers.
Separate charges can also apply to overdue tax payments, including penalties linked to outstanding balances after the payment deadline.
Why the First Year Comes With a Penalty Exemption
Despite the new deadlines, HMRC has confirmed that late mandatory quarterly updates will not attract penalty points during the 2026–2027 tax year.
HMRC said:
“If you miss quarterly update deadlines you may get a late submission penalty — these are points based. If you reach a penalty point threshold, you’ll get a £200 penalty. The point thresholds depend on whether you’re required to use Making Tax Digital for Income Tax or you’re volunteering.
“HMRC will not apply penalty points for late quarterly updates during the 2026 to 2027 tax year. You will need to send your quarterly updates before you are able to submit your tax return. Penalty points will still apply for late tax returns for this tax year.
“If you do not send your quarterly update by the relevant deadline, you will get a late submission penalty point. If you reach 4 points, you’ll get a £200 penalty. Penalty points will also apply for late tax returns.”
The final paragraph describes the general penalty rules; the first-year exemption still applies to mandatory quarterly updates.
Two Tax Return Dates Remain on the Calendar
Taxpayers joining MTD in April 2026 must still submit their 2025–2026 Self Assessment tax return by January 31, 2027, using the usual process.
Their first annual return under the new digital system, covering the 2026–2027 tax year, is due by January 31, 2028.
HMRC also began automatically enrolling eligible taxpayers who had not signed up in September 2026, with registration taking place in stages.
Even without first-year quarterly penalties, participants must maintain digital records throughout the year and submit their quarterly information before filing their annual MTD tax return.
