Quarterly updates for Making Tax Digital for Income Tax

What are quarterly updates for MTD for ITSA?

From April 2026, those who must comply with Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) will have to submit quarterly updates to HMRC.

Alongside quarterly updates, taxpayers will also need to send HMRC 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 £50,000 annually will need to comply with MTD rules from April 2026. 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. These updates are cumulative over the tax year – so you can correct errors or make adjustments to previous submissions in your next update.

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

Following the 2023 Autumn Statement, the government is removing the End of Period Statement (EOPS) from ITSA submission requirements. This is because much of the information required in an EOPS is already covered in the Final Declaration. And with the help of cloud-based software, a formal EOPS is no longer necessary.

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 Final Declaration is due on 31 January, along with payment.

Prepare for MTD for ITSA

Talk to your accountant or bookkeeper 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.