Quarterly updates for Making Tax Digital for Income Tax

Under MTD for ITSA rules, landlords and the self-employed will have to provide quarterly updates on their income tax.

Hands typing on laptop running Making Tax Digital software in office setting

What are quarterly updates for MTD for ITSA?

From April 2024, those who must comply with Making Tax Digital for Income Tax Self Assessment (MTD ITSA) will have to submit quarterly updates to HMRC.

Alongside quarterly updates, taxpayers will need to send an End of Period Statement (EOPS) and a Final Declaration. This replaces the yearly Income Tax return and forms part of the government’s plan to digitise the tax system. For this article, we’ll be focusing on quarterly updates.

Who needs to send quarterly updates under MTD for ITSA?

Landlords and self-employed people earning above £10,000 annually will need to comply with MTD rules from April 2024. This means they’ll need to send quarterly updates to HMRC via compatible software.

Why are quarterly updates needed?

Quarterly updates require less information than a single annual return. They also demonstrate that the taxpayer is keeping their records up to date regularly. What’s more, taxpayers can receive an estimate based on their reported income of the tax they’ll need to pay, so they’ll have more time to prepare for their bills.

How do you send quarterly updates for MTD for ITSA?

You can send quarterly updates to HMRC via MTD-compatible software. Providing your records are kept up to date, your accounting software will help you pull together the information required.

Who can submit quarterly updates for MTD for ITSA?

You or your accountant or bookkeeper can submit your quarterly updates for MTD for ITSA. If you’d like your accountant or bookkeeper to submit quarterly updates on your behalf, you’ll need to authorise them to do so. Contact your advisor, or your accounting software provider for more information.

When will you need to send quarterly updates for MTD for ITSA?

You have a month after the period end date to send your quarterly update.

So if you’re submitting an update for the quarterly period 6 April to 5 July, you must send your update by 5 August.

Here’s a table with the standard quarterly periods and deadlines.

Quarterly Period

6 April to 5 July

6 July to 5 October

6 October to 5 January

6 January to 5 April

Quarterly Deadline

5 August

5 November

5 February

5 May

According to HMRC, you’ll be able to use calendar quarters at a later date. When this feature is available, HMRC will let you know.

What about the ‘End of Period Statement’ and ‘Final Declaration’?

The End of Period Statement (EOPS) and Final Declaration are both annual submissions. In your End of Period Statement, you need to make any adjustments to your accounting, claim reliefs, and confirm all information submitted is complete and accurate.

Your Final Declaration is where you need to disclose other forms of income, such as investment or savings, and submit any claims for relief.

Your EOPS and Final Declaration are due on 31 January, along with payment. Your MTD-compatible software will help you or your accountant or bookkeeper prepare and file EOPS and Final Declaration.

Prepare for MTD for ITSA

Talk to your accountant about signing up for MTD for ITSA. The more time you spend getting used to new digital tools, the easier you’ll find the transition to Making Tax Digital. You can keep up to date with the latest on MTD by bookmarking our Making Tax Digital resource hub and MTD for ITSA page.

Join Xero’s MTD for ITSA beta programme

Xero’s MTD for ITSA beta programme is one of the first HMRC-recognised software solutions available for Making Tax Digital for Income Tax.