MTD Quarterly Deadlines: Are You Ready for Your First Quarterly Submission?

The MTD quarterly deadlines are important dates for self-employed individuals and landlords required to use Making Tax Digital for Income Tax. If you have joined Making Tax Digital for Income Tax, you must maintain digital records and submit quarterly updates to HMRC through compatible software.

The first MTD deadline was 7 August 2026, and the next quarterly submission deadline is 7 November 2026. Taxpayers who missed their first update should still submit it, even though HMRC is not imposing late quarterly update penalties for the first mandatory tax year.

Under Making Tax Digital for Income Tax, quarterly updates report cumulative income and expense totals from digital records. They do not replace the annual tax return, and taxpayers are not normally required to calculate tax adjustments before sending each update.

This guide explains the MTD ITSA quarterly updates, who must submit them, the reporting periods and deadlines, what HMRC receives, and how to prepare for ongoing MTD quarterly submissions.

What Are the MTD Quarterly Deadlines?

MTD quarterly deadlines are the dates by which eligible self-employed individuals and landlords must send digital summaries of their business income and expenses to HMRC using compatible Making Tax Digital software.

Making Tax Digital for Income Tax introduces regular digital reporting rather than relying exclusively on information submitted at the end of the tax year.

Under the rules, taxpayers must:

• Maintain digital records of relevant income and expenses
• Use compatible software to prepare quarterly updates
• Submit separate updates for each relevant business
• Review the information submitted throughout the year
• Complete the required annual tax return and tax adjustments

Like Making Tax Digital for VAT, MTD for Income Tax requires digital records and compatible software. However, the underlying reporting obligations differ.

Taxpayers who need a broader overview of the rules can also review our complete UK guide to Making Tax Digital for Income Tax.

Are MTD Quarterly Submissions the Same as Tax Returns?

No. A quarterly update is a summary of digital income and expense records, not a complete tax return.

HMRC confirms that quarterly updates are summaries generated from digital records and do not require accounting or tax adjustments before submission. It is also useful to understand how Making Tax Digital for Self Assessment fits with the annual Income Tax reporting process.

Who Needs to Submit MTD ITSA Quarterly Updates?

Individuals who are required to use Making Tax Digital for Income Tax must submit quarterly updates for the relevant income sources covered by the rules.

This generally includes eligible:

• Self-employed sole traders
• Individuals receiving UK property income
• Individuals with relevant overseas property income
• Individuals operating more than one qualifying business

The first mandatory phase applies to qualifying individuals with total relevant gross self-employment and property income exceeding £50,000, subject to the applicable eligibility and exemption rules.

Later phases extend the requirements to individuals with lower qualifying income thresholds. Self-employed individuals seeking a self-employed accountant in Fulham can receive guidance on MTD eligibility, qualifying income thresholds and preparing digital records for quarterly reporting.

If you are unsure about your employment status, first check whether you are self-employed, as MTD for Income Tax primarily affects qualifying individuals with self-employment or property income.

Do you need separate quarterly updates for different businesses?

Yes. HMRC generally requires a separate quarterly update for each relevant self-employment or property business.

For example, an individual who operates a consultancy and also receives rental income may need separate updates for the consultancy and the property business.

However, individual rental properties are not automatically treated as separate property businesses. Several UK rental properties may form one UK property business for Income Tax purposes.

Do limited companies need MTD quarterly updates for Income Tax?

Limited companies are not brought into MTD for Income Tax merely because they operate a business or receive rental income.

The Income Tax quarterly reporting rules primarily apply to qualifying individuals.

A limited company may have separate digital VAT reporting responsibilities, but those should not be confused with MTD ITSA quarterly submissions.

Companies with VAT obligations should instead review the separate rules for complying with Making Tax Digital for VAT, as these are different from MTD for Income Tax.

MTD Quarterly Deadlines for the 2026/27 Tax Year

HMRC has confirmed four quarterly update deadlines for taxpayers within the first mandatory phase.

These deadlines are the same for standard and calendar update periods. A passed deadline does not remove the obligation to submit. The annual MTD Income Tax return for 2026/27 is due by 31 January 2028.

HMRC’s published timetable confirms these deadlines. Self-employed individuals and landlords looking for digital tax services in Wimbledon support can receive guidance on managing MTD quarterly deadlines, maintaining compliant digital records and preparing timely submissions to HMRC.

You can also review the government’s official guidance on Making Tax Digital quarterly updates for the reporting timetable and submission requirements.

Standard Tax Year Reporting Periods

For businesses using the standard tax-year reporting method, quarterly updates follow dates aligned with the tax year.

Calendar Quarter Reporting Periods

Eligible taxpayers can use calendar update periods where the appropriate election is made through compatible software.

For a first-year taxpayer using calendar periods:

Important: MTD quarterly updates are cumulative. The second update includes records from the beginning of the reporting year through the end of the second period, not just transactions arising during the latest three months.

The relevant cumulative periods are set out in HMRC’s guidance and the Income Tax (Digital Obligations) Regulations 2026.

Can you change your quarterly reporting method?

Your compatible software normally defaults to standard tax-year periods.

If calendar update periods are appropriate, the selection must be made before your first quarterly update is submitted. HMRC states that you cannot change the update-period basis for the remainder of the tax year once a quarterly update has been sent.

Businesses should therefore check their accounting period and software settings before submitting their first update.

Missed the First MTD Deadline? What Should You Do Now?

The first MTD deadline for mandatory quarterly reporting was 7 August 2026.

If you were required to submit your first quarterly update and have not done so, the obligation has not disappeared.

You should:

1. Check whether Making Tax Digital for Income Tax applies to you
2. Confirm that your compatible software is connected to HMRC
3. Review your digital records for the first reporting period
4. Submit the outstanding quarterly update
5. Prepare your next update by 7 November 2026
6. Establish a regular bookkeeping and reconciliation process

For the 2026/27 tax year, HMRC is not applying penalties for late quarterly updates. However, outstanding updates must still be completed before the annual tax return can be submitted.

This first-year concession does not remove other relevant tax return or payment obligations.

What Information Must Be Included in MTD Quarterly Submissions?

MTD-compatible software uses the digital records maintained for each business to prepare quarterly income and expense summaries.

The information generally includes totals for the relevant categories used in the taxpayer’s business records.

Income and expense information

Depending on the business, records may include:

• Self-employment turnover and other business income
• Relevant property rental income
• Business purchases and operating expenses
• Property repairs and maintenance costs
• Professional fees
• Insurance and other business expenditure
• Other applicable income and expense categories

The category treatment must follow HMRC’s digital record-keeping requirements and the taxpayer’s relevant accounting basis.

What does HMRC receive in a quarterly update?

HMRC receives category totals based on the digital records submitted through compatible software.

It does not normally receive copies of individual invoices, receipts or bank transactions as part of the quarterly update.

The taxpayer must nevertheless maintain the supporting digital records required under Making Tax Digital.

Example: MTD quarterly update for a sole trader

A self-employed consultant records the following business figures:

The software uses the appropriate income and expense categories to prepare the update. The £15,500 figure is not necessarily the consultant’s final taxable profit, because year-end tax adjustments, allowable reliefs and other information may still need to be considered.

People starting their first business should also understand the steps involved in setting up as a sole trader before managing ongoing MTD reporting obligations.

Do You Need to Make Tax Adjustments Before an MTD Quarterly Deadline?

No. HMRC does not normally require taxpayers to make accounting or tax adjustments before sending an MTD quarterly update.

Quarterly updates are designed to reflect the digital records maintained during the reporting year.

Adjustments that may be necessary later include:

• Capital allowances
• Private-use adjustments
• Certain accounting adjustments
• Tax relief claims
• Other year-end corrections

These are generally considered during the annual tax return process. Capital allowances are generally dealt with later in the annual process, so businesses may also want to review the tax allowances available for capital expenditure.

Can you correct errors after submitting an update?

Yes. If an error is discovered in a digital record, the taxpayer should correct it using the relevant software process.

Because quarterly submissions contain cumulative totals, corrected records can generally be reflected in the next update.

Where the fourth update has already been submitted, further corrections to digital records may require the fourth update to be resent before the annual tax return is finalised.

HMRC’s digital record-keeping guidance explains how corrections should be handled.

Do You Need to Submit an MTD Quarterly Update With No Business Activity?

Yes. If you are required to submit quarterly updates for a relevant business, you must still send an update even where no income was received and no expenses were incurred during the reporting period.

A business with no activity in the latest period may still have cumulative figures from earlier periods.

Where there has been no activity at all, the software can produce the appropriate nil update.

Example: A landlord with no rental income

Suppose a landlord’s property remains empty during a quarter and no property expenses are recorded.

If the landlord is required to use MTD for the relevant property business, the absence of rental income does not automatically remove the obligation to send an update.

Submitting the update keeps HMRC’s reporting record current. Landlords should also understand the wider rules for rental income tax returns, as quarterly MTD updates do not replace their annual tax obligations.

What Happens After You Submit an MTD Quarterly Update?

Once a quarterly update has been successfully sent, HMRC records the submission. Taxpayers can check their recent activity through their HMRC online account.

An estimated tax calculation may also become available in the compatible software or HMRC account. Because the annual return still determines the final tax position, taxpayers should also be aware of the most common Self Assessment mistakes before completing their year-end submission.

Is the estimated MTD tax bill final?

No. The estimate is indicative and may change as more information becomes available.

It may not yet fully reflect:

• Employment income
• Dividend income
• Investment income
• Pension income
• Capital gains
• Other relevant income
• Tax reliefs
• Accounting adjustments

Some additional income information already held by HMRC may be incorporated into the estimate.

The final tax position is determined through the annual tax return process. The eventual liability will also depend on the current Income Tax bands and allowances applying to the taxpayer’s overall income.

Do quarterly updates mean paying tax four times a year?

No. Submitting quarterly updates does not itself introduce quarterly Income Tax payment dates. Taxpayers must continue to meet their relevant Income Tax payment obligations, including payments on account where applicable.

Quarterly reporting and tax payment deadlines are separate requirements.

Are There Penalties for Missing MTD Quarterly Deadlines?

HMRC has introduced a points-based late submission penalty regime for Making Tax Digital for Income Tax.

However, a transitional concession applies to quarterly updates for the first mandatory tax year.

MTD quarterly deadline penalties explained

For quarterly submission obligations, the normal penalty point threshold is four points. HMRC has confirmed that no quarterly late submission penalties apply to the 2026/27 tax year. However, taxpayers still need to complete their digital records and quarterly updates before submitting their annual MTD tax return.

Taxpayers should also understand the higher penalties that can apply to MTD filers once the normal points-based regime becomes fully relevant.

Does the first-year penalty concession mean MTD compliance is optional?

No. The concession provides time for affected taxpayers to adapt to digital reporting.

It does not remove the legal requirement to maintain digital records, submit quarterly updates or complete the annual tax return.

Businesses that do not establish suitable processes may face more significant compliance problems when the normal quarterly penalty rules apply.

How to Prepare for Your Next MTD Quarterly Deadline

Preparing for MTD quarterly submissions is easier when records are maintained regularly rather than collected immediately before each deadline.

Step 1: Confirm Your MTD Registration

Check that you are signed up for Making Tax Digital for Income Tax and that the relevant businesses are correctly identified.

If you have not completed registration yet, use the GOV.UK service to sign up for Making Tax Digital for Income Tax.

Step 2: Use HMRC-Compatible Software

Select software capable of maintaining the required digital records and sending quarterly updates.

Some businesses may use bridging software with spreadsheets, provided the overall arrangements meet HMRC’s compatibility and digital record requirements.

Businesses seeking digital tax services in Farringdon support can review suitable MTD-compatible software, digital record-keeping requirements and the processes needed for accurate quarterly submissions.

Before choosing a platform, businesses may find it useful to compare the best accounting software options for digital bookkeeping and MTD reporting.

Step 3: Record Income and Expenses Regularly

Keep business records current throughout the reporting period.

Avoid leaving several months of transactions to be categorised immediately before the deadline. Self-employed individuals and landlords preparing for quarterly submissions may benefit from professional MTD bookkeeping services in Farringdon to keep digital income and expense records current, reconcile transactions and prepare for each HMRC deadline.

Step 4: Reconcile Your Financial Records

Compare recorded transactions with available bank statements, invoices and receipts.

Investigate missing income, duplicated entries and incorrectly categorised expenses.

Step 5: Check the Reporting Period

Confirm whether the software uses standard tax-year periods or the selected calendar update periods.

Step 6: Review the Quarterly Update

Before submitting, check the cumulative income and expense totals generated by the software.

You do not normally need to calculate year-end tax adjustments at this stage.

Step 7: Submit and Confirm Receipt

Send the update through compatible software and check that HMRC has recorded the submission. Taxpayers seeking digital tax filing in Fulham support can receive assistance with submitting quarterly MTD updates, checking HMRC submission confirmations and maintaining accurate reporting records.

Step 8: Prepare for the Next Deadline

Continue recording transactions and reviewing financial information so the next update can be prepared without unnecessary pressure.

MTD Quarterly Submission Readiness Checklist

Quarterly MTD preparation

• ☐ Confirm MTD Income Tax registration
• ☐ Identify all relevant businesses requiring updates
• ☐ Check compatible software and HMRC authorisation
• ☐ Verify standard or calendar reporting periods
• ☐ Record income and expenses digitally
• ☐ Reconcile bank transactions and supporting records
• ☐ Review cumulative income and expense categories
• ☐ Submit any outstanding quarterly updates
• ☐ Check HMRC submission confirmation
• ☐ Set reminders for the remaining deadlines

CASE STUDY: Helping a Landlord Catch Up With MTD Quarterly Reporting

A landlord contacted our Fulham office after realising that they had missed their first MTD quarterly deadline on 7 August 2026 and were unsure whether they still needed to submit the outstanding update.

The client had several rental properties forming one UK property business and was maintaining some records digitally, but the bookkeeping software had not been fully connected to HMRC for Making Tax Digital for Income Tax.

CIGMA Accounting reviewed the landlord’s MTD registration, digital records, software setup and reporting periods. We explained that missing the first quarterly deadline did not remove the obligation to submit the update, even though HMRC is not applying late quarterly-update penalties during the first mandatory 2026/27 tax year.

We then helped reconcile rental income, repairs, professional fees and other property expenses before preparing the outstanding cumulative update. The client was also shown that quarterly submissions are not four separate tax returns and do not normally require full year-end tax adjustments at each deadline.

Once the first update was brought up to date, we established a regular bookkeeping process so that the 7 November 2026 submission could be prepared from current digital records rather than reconstructed immediately before the deadline.

The client left with a clearer understanding of their position, options, and next steps.