MTD Quarterly Updates: What to Submit and When

Quarterly updates are the biggest change MTD brings

If you're a sole trader or landlord, you're probably used to filing one Self Assessment tax return per year. Making Tax Digital for Income Tax (MTD for ITSA) changes that fundamentally.

From 6 April 2026, you'll need to send HMRC a summary of your income and expenses every quarter — plus a final declaration at the end of the year. That's five submissions instead of one.

It sounds like a lot. But once you understand what's actually required, it's far less daunting than it first appears.

Who needs to send quarterly updates?

MTD for ITSA is being rolled out in waves based on your gross income from self-employment or property:

• 6 April 2026 — gross income over £50,000
• April 2027 — gross income over £30,000
• April 2028 — gross income over £20,000

If you're above the threshold for your wave, you'll need to keep digital records and send quarterly updates using compatible MTD software.

Not sure if you're affected? It's based on gross income — that's your total turnover before expenses, not your profit. If your rental income and sole trader income combined exceed the threshold, you're in.

When are quarterly updates due?

The tax year runs from 6 April to 5 April, and it's split into four quarters. Each update is due by the 7th of the month after the quarter ends.

Here are the exact deadlines:

• Quarter 1: 6 April – 5 July → due by 7 August
• Quarter 2: 6 July – 5 October → due by 7 November
• Quarter 3: 6 October – 5 January → due by 7 February
• Quarter 4: 6 January – 5 April → due by 7 May

You can also choose to use calendar quarters (ending 30 June, 30 September, 31 December, and 31 March) if that suits your business better. Your software or accountant can help you set this up.

What do you actually submit?

This is where people tend to panic — and where the reality is simpler than the headlines suggest.

A quarterly update is essentially a summary of your income and expenses for that period. You're not doing a full tax return every three months. You're just sending HMRC a snapshot of the numbers your software has already been tracking.

For sole traders

Your update will include a summary of your business income (sales, fees, commissions) and your allowable expenses (materials, travel, phone, insurance, etc.) for the quarter.

For landlords

You'll submit your rental income received and property expenses incurred during the quarter — things like mortgage interest, repairs, letting agent fees, and insurance.

What if you have both?

If you're a sole trader and a landlord, you'll need to send separate quarterly updates for each source of income. That means two updates per quarter — one for your trade, one for your property business.

How the submission actually works

You won't be filling in forms on the HMRC website. Quarterly updates are sent directly from your MTD-compatible software to HMRC via an API connection.

In practice, that means:

• You keep your records in your software throughout the quarter
• When the deadline approaches, your software pulls together the summary
• You review the figures, click submit, and it's done

Most decent software will remind you when a deadline is coming up. Some will even categorise your transactions automatically using bank feeds, so the quarterly update is little more than a review and a button press.

What about the final declaration?

After your four quarterly updates, there's one more step: the final declaration. This replaces your current Self Assessment tax return.

The final declaration is due by 31 January following the end of the tax year — the same deadline you're used to. So for the 2026/27 tax year, your final declaration would be due by 31 January 2028.

This is where you:

• Confirm your quarterly figures are complete and correct
• Add any other income (savings interest, dividends, employment income)
• Claim any tax reliefs or allowances
• Finalise your tax position for the year

Think of the quarterly updates as keeping HMRC informed throughout the year, and the final declaration as tying everything together at the end.

What happens if you miss a quarterly deadline?

HMRC is introducing a new points-based penalty system for late submissions. Here's how it works:

• Each late quarterly update earns you one penalty point
• When you reach four points, you get a £200 fine
• Every late submission after that also triggers a £200 fine
• Points expire after 24 months of clean compliance

The good news is that the odd late submission won't cost you anything. You'd need to miss four deadlines before any financial penalty kicks in. HMRC clearly designed this to allow for genuine slip-ups while catching persistent non-compliance.

That said, there's no reason to let it get to that point. Set up your software properly, enable reminders, and each quarterly update should take minutes rather than hours.

How to make quarterly updates painless

The people who'll find quarterly updates easiest are those who set things up properly from the start. Here's what that looks like:

• Connect your bank account — most MTD software can pull in transactions automatically via Open Banking. This alone eliminates 90% of the manual work.
• Categorise as you go — spending five minutes a week sorting transactions is far easier than facing a mountain of uncategorised entries at deadline time.
• Use the right software — not all MTD software is created equal. Some are built specifically for landlords, others suit sole traders better. Compare your options before committing.
• Set calendar reminders — even with software notifications, put the four deadlines (7 August, 7 November, 7 February, 7 May) in your calendar now.

Do quarterly updates mean paying tax quarterly?

No — and this is a common misconception worth clearing up.

Quarterly updates are reporting only. You're sending HMRC your income and expense figures. You are not paying any tax at this stage.

Your actual tax payments continue to work through the existing Payment on Account system, with payments due on 31 January and 31 July — exactly as they do now under Self Assessment.

HMRC may eventually move to more frequent tax payments, but that's not part of the current MTD rollout. For now, it's quarterly reporting, not quarterly payment.

What you should do now

If you're a sole trader or landlord earning above £50,000, the first quarterly period starts 6 April 2026. That means your first quarterly update will be due by 7 August 2026.

The smartest thing you can do right now is choose your MTD software and get comfortable with it before the deadline arrives. Most providers offer free trials, and starting early means your first quarterly update will feel routine rather than stressful.

Compare MTD-compatible software options and find the right fit for your situation — whether you're a sole trader, a landlord, or both.