Self-employed individuals and landlords with combined annual income, before deducting expenses, of £50,000 or more should have submitted their first QU using HMRC-approved software by 7 August 2026. According to HMRC, more than 436,000 taxpayers had successfully filed their first QU by 12 August.

There are no penalties for late filing of QUs in the 2026-27 tax year. However, taxpayers who fall into the first tranche of mandation are required by law to keep digital records and comply with the MTD rules from April 2026, which includes filing the four QUs each year. If you have self-employed and/or property income of £50,000 or more on your 2024-25 tax return and you have not submitted the first QU, contact us to discuss how we can help you meet your filing obligations.

The waiving of late-filing penalties only applies to QUs in the first year of MTD (2026-27). Failure to submit QUs from 2027-28 will result in penalty points which may lead to fines. Penalties still apply for late-filing of the final declaration for 2026-27 and late-payment of tax.

We have been preparing to help clients navigate MTD for some time. Get in touch to discuss what you need to do to comply with the new regulations and when.