MTD Income Tax Quarterly Updates

FAQs

Can I do my own quarterly updates?

Absolutely! Free access to our MTD-compliant digital bookkeeping software, Pandle Pro, is included as standard in all our accountancy packages too, so you'll be able to use this to manage your record-keeping and send your own quarterly updates throughout the year.

You don't have to use Pandle if you don't want to! If you do use Pandle, our bookkeeping team will carry out proactive record checks at no extra cost.

What records do I need to keep and send?

You’ll need to keep financial records like you normally would, showing all the income and expenses relating to your self-employed business or property income.

These must be kept digitally, using software that’s compliant with MTD. We provide all our clients with Pandle Pro as part of our standard service, but you're welcome to use other software if you prefer.

HMRC will only see a summary of each relevant income and expense category - they won't receive the details of each individual digital record.

Can I make changes to my quarterly updates?

Yes, you can make adjustments and even resubmit updates if you need to.

Can my accountant manage MTD for me?

Yes, you can ask your accountant to help you with Making Tax Digital. An accountant can take care of the entire process, or you can make quarterly updates yourself and then have your accountant finalise everything and submit your final tax return.

When does MTD for Income Tax become compulsory?

It will come into effect from 6th April 2026 for sole traders and landlords whose annual turnover is more than £50,000. The threshold reduces to £30,000 from April 2027, and again to £20,000 from April 2028.

Can I register for MTD Income Tax early?

You can voluntarily follow the rules now, as long you’re a UK resident who is registered for Self Assessment. You must be a sole trader with income from only one business, or a landlord who only has UK property (or both!).

Will I still need to submit Self Assessment tax returns?

Once you start using MTD Income Tax, you'll send quarterly updates to report your qualifying self-employment and property income to HMRC throughout the year.

After your last quarterly update, you'll need a final MTD Income Tax Return which includes all your income and expenses - not just the details in your quarterly updates.

If you don't need to use MTD Income Tax, you won't need to send quarterly updates, and you'll just carry on submitting a Self Assessment tax return as usual.

Do company directors need to make MTD Income Tax submissions?

MTD Income Tax is only mandatory for those whose income from property or being a sole trader is above the threshold. Any other income you might get, such as from dividends or if you take a salary from your own company, won't be used to work out your qualifying income.

If you need to use MTD IT because you have other qualifying income, you'll submit quarterly updates about your sole trader or property income, and then add the details of any other earnings to your tax return after making your final quarterly submission.

What you need to submit for Making Tax Digital

Our sole trader accounting services start from £24.50 per month and include either your final MTD Income Tax Return or Self Assessment depending on which you need, at no additional cost.

Anyone using MTD Income Tax must also send quarterly updates about their income and expenses. You can submit these updates yourself for free, using MTD-compliant software like Pandle - which you'll receive as part of your accounting service. Then your accountant will take care of any adjustments at the end of the year when they submit your final MTD Income Tax Return.

Do I need to use MTD Income Tax?

Not everyone will need to use MTD Income Tax - or at least not straight away! Your eligibility is based on your total sole trader and/or rental income as a landlord (not just profits).

Anyone whose total combined income from self-employment and/or property is more than £50,000 must start using it from 6th April 2026, with their first update due on 7th August 2026. The threshold will be reduced to £30,000 from April 2027, and again to £20,000 from April 2028.

Learn more about preparing for MTD Income Tax.

Registering for MTD

You must enrol for MTD Income Tax separately, even if you already use MTD for VAT, or you're registered for Self Assessment. Don't leave it till the last minute!

Use the GOV.UK online service to register
Choose software compatible with MTD Income Tax

We will complete your registration for MTD Income Tax as part of our quarterly update add-on service.

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