The 2026/27 grace period
Budget 2025 introduced a one-year easement for late quarterly updates in 2026 to 2027. HMRC reflected that change in its public guidance.
Who it applies to
This grace period applies to people who are required to start using Making Tax Digital for Income Tax from 6 April 2026 — sole traders and landlords whose qualifying income from self-employment and property was over £50,000 in the 2024 to 2025 tax year.
What it changes
No points for late quarterly updates in 2026 to 2027
If one of your quarterly updates for the 2026 to 2027 tax year is late, HMRC will not give you a penalty point for that missed quarterly deadline.
- 6 Apr 2026Start using the service
- 7 Aug 2026Q1 — no point if late
- 7 Nov 2026Q2 — no point if late
- 7 Feb 2027Q3 — no point if late
- 7 May 2027Q4 — no point if late
- 31 Jan 2028Tax return due — normal penalties
What it does not change
The grace period does not remove the need to send your updates. You still need to keep digital records and send all quarterly updates before you can submit your tax return. It also does not protect you from a late submission penalty on the tax return itself, and it does not protect you from late payment penalties or interest.
Deadline reminder
The usual quarterly deadlines are 7 August, 7 November, 7 February and 7 May. Those dates are the same whether you use standard update periods or calendar update periods.
If you first join in 2027 to 2028
Because this easement only covers quarterly updates in the 2026 to 2027 tax year, people whose first mandatory year is 2027 to 2028 do not get this particular grace period. That includes those who first have to join from 6 April 2027 because their income was over £30,000 in 2025 to 2026.
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