MTD Quarterly Updates Made Simple
What do you send to HMRC every three months, when is it due, and does it apply to you? Our UK guide explains quarterly reporting for sole traders and landlords, with practical examples and an interactive deadline finder.
For taxpayers required to use MTD for Income Tax in 2026/27. The first update was due on 7 August 2026.
What are MTD quarterly updates?
Under Making Tax Digital for Income Tax, eligible sole traders and landlords must keep digital records and send regular summaries of their income and expenses to HMRC using compatible software.
Each quarterly update is a snapshot of your recorded business or property activity. Unlike a traditional tax return, it does not require you to calculate your final tax liability or claim every tax relief at that stage.
Digital records
Record income and expenses throughout the year using software that supports MTD for Income Tax.
Quarterly updates
Send cumulative income and expense totals for each relevant business or property income source.
Annual tax return
Complete your tax return after the year ends, including adjustments, other income, reliefs and the final calculation.
Who must submit MTD quarterly updates?
MTD for Income Tax is being introduced in stages for qualifying individuals receiving income from self-employment or property.
| MTD start date | Qualifying income | Income assessed |
|---|---|---|
| 6 April 2026 | Over £50,000 | 2024/25 tax return |
| 6 April 2027 | Over £30,000 | 2025/26 tax return |
| 6 April 2028 | Over £20,000 | 2026/27 tax return |
Qualifying income generally means combined gross income from self-employment and property, before deducting business expenses. It is not your taxable profit.
For example, if your self-employment turnover is £36,000 and your gross property income is £18,000, the combined figure is £54,000, even if your actual profit is considerably lower.
Employment salary and ordinary dividend income do not normally count towards this qualifying-income test, although they may still need reporting on your annual tax return.
The initial rollout does not generally require limited companies or partnerships to submit MTD for Income Tax quarterly updates. Separate MTD for VAT rules may still apply. Certain individuals may qualify for an exemption.
When might MTD apply to you?
Enter your gross self-employment and property income for a selected reference tax year. This provides an indicative assessment of the staged rollout.
Indicative assessment
This tool assumes you are an individual within the normal MTD for Income Tax scope and have a full-year qualifying income figure. Exemptions, special income rules, previous MTD obligations and other circumstances may change the result.
MTD quarterly update deadlines for 2026/27 and beyond
Choose your tax year and reporting basis to see the four update periods and their filing deadlines. Standard and calendar reporting use different period end dates but the same submission deadlines.
Your quarterly reporting calendar
| Update | Cumulative period | Deadline |
|---|
How cumulative quarterly updates work
Suppose a sole trader records £10,000 of gross income in each three-month period. The cumulative figures sent through the software would be:
These figures are illustrative gross income totals. Expense categories are also reported where applicable. You do not add the four cumulative totals together to calculate annual income; the fourth figure already represents the full reporting year.
This approach means corrections made to digital records can be reflected in later cumulative updates. The final tax return remains the stage at which the full tax position is established.
How to submit your MTD quarterly updates
Confirm your start date and register
Check whether your qualifying income brings you into MTD and ensure you are signed up correctly with HMRC.
Choose compatible software
Use software that supports digital record-keeping and MTD for Income Tax submissions. Check whether it also supports your annual tax return.
Record income and expenses
Maintain records regularly. Keep supporting invoices, receipts and other evidence in line with applicable record-keeping requirements.
Review the reporting period
Check missing transactions, duplicate entries, expense categories and whether your software is set to standard or calendar reporting.
Send the update through your software
Review the cumulative totals and submit the update electronically. Retain confirmation that HMRC has received it.
Complete your annual tax return
After the tax year, finalise adjustments and reliefs, include other taxable income and submit your tax return by the applicable deadline.
What if you have more than one income source?
Sole trader with rental property
You may need separate quarterly updates for your self-employment and property activities. Their combined gross income can determine whether MTD applies.
Two self-employed businesses
Each separate self-employment business generally requires its own digital records and quarterly updates.
Jointly owned rental property
Special reporting rules may allow jointly let property income to be reported without expenses during the quarterly updates, with expenses dealt with before the annual tax return.
Salary and self-employment
Your employment salary does not ordinarily count towards the qualifying-income threshold. It can still be relevant to your final annual Income Tax calculation.
What happens if you miss an MTD quarterly deadline?
HMRC's late-submission system uses penalty points. Under the standard quarterly submission regime, reaching four points can trigger a £200 penalty, with further penalties for subsequent missed obligations while at the threshold.
From later tax years, quarterly late-submission points can apply. The precise treatment can depend on the taxpayer's obligations and circumstances. Late payment penalties and interest are separate from late-submission penalties.
If you have missed a deadline, update your digital records, submit the outstanding update as soon as possible and check your HMRC account for any outstanding obligations.
Are you ready for your next quarterly update?
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MTD quarterly updates: your questions answered
Are MTD quarterly updates the same as tax returns?
No. Quarterly updates contain cumulative income and expense summaries. Your annual tax return is still needed to establish the final tax liability, including adjustments, allowances, reliefs and other taxable income.
Do I have to pay Income Tax every quarter?
No. Sending quarterly updates does not create a new quarterly Income Tax payment schedule. The existing Self Assessment payment rules, including payments on account where applicable, continue to apply.
What are the four MTD deadlines?
The standard deadlines are 7 August, 7 November, 7 February and 7 May. The February and May deadlines fall in the calendar year after the relevant tax year begins.
Can I use Excel for MTD quarterly updates?
Spreadsheets may form part of a compliant digital record-keeping process when used with suitable compatible software and digital links. An ordinary spreadsheet alone does not directly submit MTD for Income Tax updates to HMRC.
Do landlords have to submit quarterly updates?
Individual landlords with qualifying property income may be required to use MTD when their combined qualifying income exceeds the relevant threshold. Property ownership structure, exemptions and the type of income can affect the position.
What if I make a mistake in a quarterly update?
Correct the underlying digital records in your software. Because updates are cumulative, later submissions can reflect corrected figures. Follow your software's instructions and ensure your records are accurate before finalising the annual tax return.
Can my accountant submit MTD updates for me?
Yes. An authorised accountant can help manage MTD obligations and submit updates using compatible software. You will still need to provide complete, timely records and supporting information.
Can I choose calendar quarters instead?
Yes. Calendar reporting periods may be suitable where your accounting period ends on 31 March. Select the correct option in your software before sending your first quarterly update for the tax year, because you cannot normally switch part-way through that year.
Do I need to submit four updates for each business?
Generally, yes. Each relevant self-employment business and property income source has its own reporting obligations. Multiple properties may be treated together as one property business rather than requiring four updates per property.
What is the first MTD annual tax return deadline?
For taxpayers entering MTD in 2026/27, the annual MTD tax return is due by 31 January 2028. The 2025/26 return is still due under the previous Self Assessment process by 31 January 2027.
Do I need to make tax adjustments every quarter?
No. HMRC does not require accounting or tax adjustments before quarterly updates. Relevant adjustments and claims are dealt with as part of completing the annual tax return.
Does MTD for Income Tax apply to limited companies?
MTD for Income Tax quarterly updates are directed at relevant individuals with self-employment or property income, not the corporation tax reporting obligations of limited companies. A company may have separate MTD for VAT obligations.
Related accounting and tax guides
Need help with MTD quarterly reporting?
The Online Accountants helps UK sole traders, landlords and business owners understand their tax obligations, organise their records and manage their accounting requirements. Speak to us about the support you need.
Speak to an accountant → View our feesReviewed for October 2026. General UK tax guidance only; individual circumstances and exemptions can affect your obligations. The Online Accountants is a trading name of Parkinson (UK) Limited.