Making Tax Digital (MTD) is the UK government’s initiative to modernise tax reporting. From April 2026, it will apply to self-employed individuals and landlords whose annual turnover from self-employment or property exceeds £50,000.

The aim of MTD is to improve accuracy and simplify record-keeping. Instead of submitting one annual tax return, affected taxpayers will need to:

  • Keep digital records of income and expenses
  • Submit quarterly updates to HMRC using compatible accounting software
  • File an end-of-year statement summarising total income and expenses

This approach helps HMRC detect errors earlier and allows taxpayers to manage their finances more proactively.

Quarterly Reporting under MTD

Under MTD for Income Tax, quarterly updates are required for the following periods:

Quarter

Period Covered

Submission Deadline

Q1

6 April – 5 July

5 August

Q2

6 July – 5 October

5 November

Q3

6 October – 5 January

5 February

Q4

6 January – 5 April

5 May

Key points about quarterly submissions:

  • Each quarterly update includes both the current and previous quarter’s data
  • Taxpayers have 30 days after the quarter-end to submit each update
  • After Q4, a final end-of-year statement reconciles all income, expenses, and tax liability

Preparing for MTD

To comply with MTD, taxpayers should:

  • Use HMRC-approved software for digital record-keeping
  • Maintain accurate records of income and expenses throughout the year
  • Be aware of quarterly deadlines to avoid late submissions

While MTD changes the reporting process, it does not change the amount of tax you pay — it simply spreads reporting across the year for more accurate tracking.

Professional Support

For businesses or landlords who want guidance, Prime Accountants Manchester can provide advice on:

  • Setting up digital records for MTD compliance
  • Preparing and submitting quarterly updates
  • Reconciling the end-of-year statement accurately

📩 For more information, visit HMRC’s Making Tax Digital for Income Tax guidance.

How Professional Support Can Help

For businesses or landlords who want guidance, Prime Accountants Manchester can advise on:

  • Setting up and maintaining digital records
  • Preparing quarterly submissions under MTD
  • Reconciling the year-end statement accurately

📩 For more information, you can also visit HMRC’s Making Tax Digital for Income Tax guidance:

https://www.gov.uk/government/collections/making-tax-digital-for-income-tax