MTD for Income Tax: your quarterly updates

Making Tax Digital (MTD) for Income Tax changes how sole traders and landlords report to HMRC. You keep digital records in software that works with MTD, send HMRC a short summary every three months, and send a final return after the tax year.

Who it applies to

• Qualifying income over £50,000 in 2024/25: MTD from 6 April 2026.
• Over £30,000 in 2025/26: MTD from 6 April 2027.
• Over £20,000 in 2026/27: MTD from 6 April 2028.

Qualifying income is your turnover (before expenses) from self-employment and property, added together. Use our MTD checker, or see HMRC's eligibility guidance (opens in new tab).

What a quarterly update is

A summary of your income and expenses, totalled by category, that your software sends to HMRC. It isn't a tax return and there's nothing to pay with it. If you spot a mistake, you can correct it in a later update.

When to send them

• 6 April to 5 July: send by 7 August.
• 6 July to 5 October: send by 7 November.
• 6 October to 5 January: send by 7 February.
• 6 January to 5 April: send by 7 May.

You can choose calendar quarters instead (ending 30 June, 30 September, 31 December and 31 March). The deadlines stay the same.

After the tax year you send a final declaration, your tax return, by 31 January. When you pay doesn't change: still 31 January, and 31 July if you make payments on account.

Getting ready

1. 1Choose software that works with MTD for Income Tax. See HMRC's list of compatible software (opens in new tab).
2. 2From the start of your first MTD tax year, keep a digital record of each sale and expense.
3. 3Sign up before your first update is due. See signing up on GOV.UK (opens in new tab).
4. 4Put the four update dates in your calendar, or let Octotax remind you.

If you're late

A late update gets a penalty point rather than a fine. Once you reach the points threshold (4 points if you send quarterly), there's a £200 penalty, and another £200 for each late submission after that. Points expire if you send everything on time for a while.

Octotax adds your quarterly update dates to your octagon once you tell us your income band in Your setup. General information, not tax advice.