From 6 April 2026, Making Tax Digital for Income Tax (MTD for IT) is mandatory for sole traders and landlords earning over £50,000 per year. If that includes you, here's exactly what to expect — and how Bidwell Accountancy can help.
MTD for Income Tax represents the biggest shake-up to self-assessment in a generation. Rather than filing one annual tax return, you'll now submit digital quarterly updates throughout the year, plus a final declaration at year end.
What is a quarterly update under MTD for Income Tax?
A quarterly update is a digital submission to HMRC summarising your income and expenses for each three-month period. Crucially, each update is cumulative — it builds on everything you've reported earlier in the year.
Each quarterly update must include:
Your self-employment or property income and expenses from the previous three months
A running total of all income and expenses reported so far in the tax year
Any corrections to previously submitted figures
Good news: No accounting or tax adjustments are needed at this stage. Raw income and expenses is all HMRC requires for each quarterly submission.
MTD quarterly update deadlines for 2026/27
There are two options for how your quarters are structured — standard (tax year basis) or calendar basis. Both share the same submission deadlines.
Standard update periods (tax year basis):
Quarter Period Deadline
Q1 6 Apr – 5 Jul 5 August
Q2 6 Jul – 5 Oct 5 November
Q3 6 Oct – 5 Jan 5 February
Q4 6 Jan – 5 Apr 5 May
If your MTD-compatible software supports it, you can also opt for a calendar quarter basis (e.g. January–March). This is particularly useful if you prepare accounts to 31 March, and gives you a few extra days each quarter to prepare your submission.
What comes after the quarterly updates? The final declaration
Once your fourth quarterly update is submitted, you'll complete a final declaration — the MTD equivalent of your annual self-assessment tax return. This is where you:
Make any accounting and tax adjustments to your figures
Add income not covered by quarterly MTD updates (such as pension income, employment income, or interest)
Claim tax reliefs including capital allowances
Deadline: 31 January following the end of the tax year — the same as the current online self-assessment filing deadline.
I'm both a sole trader and a landlord — do I need to submit twice?
Yes. Separate quarterly updates are required for each trade or property business. If you earn both trading income and rental income, that means up to 8 quarterly submissions per year.
This is one of the most common points of confusion around MTD for Income Tax. If you're unsure how this applies to your situation, our team can walk you through it.
Do I need MTD-compatible software?
Yes — all quarterly updates must be submitted using HMRC-recognised MTD-compatible software. Spreadsheets alone aren't sufficient. You'll need software that connects directly to HMRC's systems, whether that's a dedicated accounting platform or bridging software that works alongside your existing records.
Choosing the right solution for your business is something Bidwell Accountancy can advise on directly.
Get MTD-ready with Bidwell Accountancy
Whether you're a new client trying to understand your obligations or an existing client looking to get everything in place before the deadlines hit, our team is here to help.
Book a call with our team today to get clear on your MTD for Income Tax requirements — we'll guide you through the quarterly filing process from start to finish.
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