From 6 April 2026, HMRC is introducing Making Tax Digital (MTD) for Income Tax for sole traders and landlords with combined turnover of more than £50,000.

• From April 2027, the threshold reduces to £30,000.
• From April 2028, it reduces further to £20,000.

If you fall within these limits, HMRC will require additional reporting during the year.

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What Is Changing

Instead of submitting one annual Self-Assessment Tax Return, HMRC will require:

• Four quarterly updates during the tax year; and
• A separate final year-end submission.

The final submission is not the same as the fourth quarterly update. In practical terms, there will be five submissions per year.

The quarterly updates are summaries of income and expenses for the period. They are not full tax returns, and they do not change how or when you pay your tax. Your final year-end submission confirms your full tax position in the usual way.

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Quarter Ends and HMRC Submission Deadlines

The month-end quarters are:

• Quarter ending 30 June – submission deadline 7 August
• Quarter ending 30 September – submission deadline 7 November
• Quarter ending 31 December – submission deadline 7 February
• Quarter ending 31 March – submission deadline 7 May

The final year-end submission remains due by 31 January following the end of the tax year.

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What An Accountant Will Need From You Each Quarter

To prepare your quarterly update, an accountant will require:

• Bank statements (including any credit card statements used for business)
• Sales income records or summaries
• Purchase invoices and receipts for expenses
• Loan or finance statements (if applicable)
• Mileage records (if claiming mileage)
• CIS statements (if relevant)
• Details of any significant purchases or disposals
• Any other documents relevant to your business or rental activity

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Why appoint an accountant for your Making Tax Digital (MTD) quarterly submissions?

By appointing a qualified accountant, you benefit from our expertise, our use of fully compliant and up-to-date MTD software and our commitment to ensuring every deadline is met without exception. Allowing us to oversee your quarterly submissions ensures accuracy, continuity and peace of mind, enabling you to focus on running your business with confidence that all of your taxes are in hand.

Our fees if you were to join us:

• Quarterly reporting: £150 + VAT per quarter
• Bookkeeping support (if required): £45 + VAT per hour, charged quarterly
• Year-end tax return / final submission: Will be confirmed in your Terms of Agreement