Making Tax Digital (MTD) for Income Tax began on 6 April 2026 for qualifying taxpayers. Those with qualifying income over £50,000 are now required to maintain digital records and submit updates of trading or property income and expenses using compatible software.
Under MTD for Income Tax, quarterly updates are required every three months for each self-employment and property business. These quarterly updates are simply summaries of income and expenses based on digital records. You do not need to make any accounting or tax adjustments before sending a quarterly update to HMRC. HMRC receives totals only, not individual digital records.
For those using standard tax year periods, the deadlines are:
- 7 August (covering the period 6 April to 5 July)
- 7 November (covering the period 6 April to 5 October)
- 7 February (covering the period 6 April to 5 January)
- 7 May (covering the period 6 April to 5 April)
Alternatively, calendar quarters can be used if they better match your accounting period, but the same deadline dates apply. This will make record keeping simpler if your accounting period ends on 31 March.
Even if there has been no activity, an update must still be submitted. Missing deadlines can lead to penalties, although HMRC has said they will not apply penalty points for late quarterly updates for the first 12 months. Penalty points will still apply for late tax returns.