When are quarterly MTD returns due to HMRC?

Background

Making Tax Digital (MTD) for Income Tax came into force on 6 April 2026. Individuals with total qualifying income from self-employment and/or property exceeding £50,000 (based on their 2024/25 tax return) are now required to maintain digital records and submit regular updates to HMRC using compatible software.

Quarterly reporting

Under MTD taxpayers must submit quarterly updates for each self-employed business, as well as total UK property, and total foreign property. These updates are summaries of income and expenses, rather than full tax calculations. There is no requirement to make accounting or tax adjustments during these quarterly updates. Similarly to other MTD submissions, HMRC only receives headline totals of this income and expenditure, not detailed transactional data.

The reporting deadlines for quarterly updates are:
• Q1 (covering the period 6 April to 5 July) – deadline 7 August
• Q2 (covering the period 6 April to 5 October) – deadline 7 November
• Q3 (covering the period 6 April to 5 January) – deadline 7 February
• Q4 (covering the period 6 April to 5 April) – deadline 7 May

As shown above, these quarterly updates are cumulative; each quarter running from the start of the tax year to the end of the current quarter. This is distinctly different to the standalone quarters that some taxpayers will be used to submitting for MTD VAT.

Taxpayers can elect to use standard calendar quarters instead of quarters to 5th of the month, which may better align with accounting periods ending on 31 March. The cumulative nature of the updates however will remain the same, as will the submission deadlines.

It is important to note that an update must still be submitted even where there has been no activity during the period. While HMRC has confirmed that penalty points will not be applied to late quarterly submissions during the first 12 months of the regime, this easement does not extend to other obligations. Late submission of the Final Declaration (see below), or late payment of tax liabilities will still attract penalties.

Year-end tax filing

Quarterly updates are only one part of the MTD process and do not represent a finalised tax position. At the end of the tax year, taxpayers will need to complete a Business Source Adjustable Summary (BSAS) for each MTD business. This allows for accounting adjustments such as accruals and prepayments, as well as tax adjustments like disallowable expenses and capital allowances. Following this, a Final Declaration must then be submitted to bring everything together and include income from all other non-MTD sources such as PAYE, dividends, pensions, etc. This Final Declaration effectively replaces the traditional Self-Assessment tax return.

Tax payments

Although the introduction of MTD changes how and when information is reported to HMRC, it does not alter when tax is due. Payment deadlines remain aligned with the existing Self Assessment system, including payments on account and balancing payments.

The future of MTD

Looking ahead, MTD for Income Tax will be extended to a wider group of taxpayers. From April 2027, those with qualifying income over £30,000 will be brought into the regime, followed by those earning over £20,000 from April 2028. As a result, it is important for individuals and businesses to start preparing now, particularly in relation to digital record keeping and software selection.

Ensuring compliance with MTD requirements will require careful planning, particularly for those with multiple income sources or more complex affairs. If you would like support preparing for Making Tax Digital, selecting appropriate software, or managing your quarterly submissions, the team at Moore South is here to help. Get in touch today to ensure you stay compliant and avoid unnecessary penalties.