Making Tax Digital: The 7 November Deadline and Why Your 2025/26 Tax Return Matters

If you're already in, this is about staying on track. If you're not, the 2025/26 tax return you file this winter is what decides whether you'll need to be ready in under six months.

What's due on 7 November

Quarterly updates under MTD are cumulative. The update due on 7 November covers your income and expenses from 6 April to 5 October 2026 – not just the last three months. If you chose calendar quarters for an income source, the period is 1 April to 30 September instead.

The full timetable for the 2026/27 tax year is:

• 6 April to 5 July – due 7 August 2026
• 6 April to 5 October – due 7 November 2026
• 6 April to 5 January – due 7 February 2027
• 6 April to 5 April – due 7 May 2027

A quarterly update is a summary, not a tax return. You still file a tax return by 31 January following the end of the tax year, and your payment dates don't change.

What about penalties? For the 2026/27 tax year, HMRC is not applying penalty points to late quarterly updates. From the following year, each missed deadline earns a point, and reaching four points triggers a £200 penalty. Treat this year as your practice run – the habits you build now are the ones that will keep you clear of penalties later.

The next wave: £30,000 from April 2027

From 6 April 2027, MTD applies to anyone whose qualifying income for the 2025/26 tax year was over £30,000. HMRC will look at the Self Assessment return you file for that year – due online by 31 January 2027 – and write to you if you're over the threshold. Even if no letter arrives, it is your responsibility to check.

The key point most people miss: qualifying income is your gross income from self-employment and property, before expenses. It is turnover, not profit.

Example (hypothetical): A self-employed hairdresser takes £22,000 in sales and also receives £10,000 a year in rent from a flat. After costs, her profit may be well under £20,000 – but her qualifying income is £32,000. She will need to use MTD from April 2027.

Jointly owned property: only your share counts. If you and a sibling own a rental property equally and it brings in £50,000, your qualifying income from it is £25,000.

Looking further ahead, the threshold drops to £20,000 from April 2028, based on 2026/27 income.

Limited company directors: does this affect you?

Your salary from your company and the dividends you take do not count towards qualifying income. Nor does your share of profits from a partnership. So a director whose only income is salary and dividends isn't brought into MTD for Income Tax.

But many directors also own rental property personally, and that income does count.

Example (hypothetical): A company director draws a salary and dividends and also owns two buy-to-let houses, each let at £1,300 a month. That's £31,200 of gross rent in 2025/26, so the director is in MTD from April 2027 for the property income – even though the company itself is unaffected.

Getting your records MTD-ready

Under MTD, every income and expense record needs to be kept digitally, with the amount, the date and a category. A few practical rules catch people out:

• Spreadsheets are allowed, but you'll need bridging software to send the updates, and the two must be digitally linked.
• No copying and pasting or retyping records between products once they've been sent in an update.
• Keep supporting documents and records for at least five years after the 31 January filing deadline.

Getting this right from day one is far easier than untangling a year of shoebox receipts in February.

Your checklist for the next few weeks

1. Already in MTD? Bring your records up to date to 5 October and send your update by 7 November.
2. Filing a paper return for 2025/26? HMRC must receive it by 31 October 2026. Online returns are due by 31 January 2027, along with any tax owed.
3. Not in MTD yet? Add up your 2025/26 self-employment and property turnover now. If it's over £30,000, you have until April 2027 to choose software and get your records in order.
4. Think you can't use digital tools? HMRC offers exemptions in some cases, such as for people who are digitally excluded. You'll need to apply.

Talk to BDE Accountants

Whether you're sending your second quarterly update or working out if the £30,000 threshold catches you, a short conversation now can save a lot of stress later. At BDE Accountants in Bury, we help sole traders, landlords and company directors choose the right software, set up their bookkeeping and handle their MTD submissions and tax returns.

Book a call with BDE Accountants today and we'll tell you exactly where you stand.

This article is general guidance based on the position at the date shown and is not advice for your circumstances. Speak to us before acting.