When do Making Tax Digital (MTD) quarterly returns start?

Team Nomi

Jul 31, 2026
8 minutes read

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From April 2026, many self-employed individuals and landlords will move to quarterly reporting under Making Tax Digital (MTD) for Income Tax. The first quarterly update is due on 7 Aug 2026, meaning businesses should start preparing well before the deadline. 

If you are affected by the new rules, you will need to keep digital records and send quarterly updates to HMRC using compatible accounting software. This means businesses that still rely on spreadsheets, paper records, or year-end bookkeeping should start preparing now.

Waiting until the first deadline arrives could leave you with limited time to organise your records, understand the new process, and choose suitable software. Preparing early allows you to keep your financial information updated throughout the year and make your first quarterly submission much easier.

Making Tax Digital quarterly returns timeline

Making Tax Digital quarterly returns start from 6 April 2026 for self-employed individuals and landlords with qualifying income above £50,000. (Qualifying income refers to your gross income from self-employment and property before deducting tax, not your overall salary or total household income.)

The introduction is happening in stages based on income levels:

HMRC will check your qualifying income based on your previous Self Assessment tax return.

If you fall within the required income threshold, you will need to keep digital records and submit Making Tax Digital quarterly returns using HMRC-recognised software instead of completing only one annual Self Assessment return.

MTD quarterly reporting deadlines

Under the new rules, businesses will need to send four quarterly updates during each tax year.

These updates give HMRC information about your business income and expenses throughout the year.

These deadlines will repeat each tax year unless HMRC announces any future changes.

Keeping your records updated regularly is important because quarterly reporting depends on having accurate income and expense information. Businesses that wait until the deadline approaches may find it difficult to collect missing invoices, check transactions, and prepare accurate figures.

What are MTD quarterly reporting requirements?

MTD quarterly reporting means sending summary updates of your business income and expenses to HMRC every three months using compatible accounting software.

These updates are not the same as submitting a full tax return every quarter. Instead, they provide HMRC with regular information about your financial activity during the tax year.

Along with quarterly updates, you may also need to complete:

• • Four quarterly updates during the tax year
  • An End of Period Statement (EOPS), where required
  • A Final Declaration to confirm your final Income Tax position

Many people search for tax return every 3 months because they assume they will need to calculate and pay tax four times a year. However, quarterly updates are mainly for reporting your financial information. Your normal tax payment deadlines remain separate under the current rules.

Who needs to prepare for Making Tax Digital quarterly returns?

The new rules mainly affect:

• • Self-employed individuals
  • Sole traders
  • Landlords with qualifying property income
  • Individuals with combined self-employed and property income above HMRC’s threshold

Limited companies are not currently included in MTD for Income Tax because they follow separate Corporation Tax reporting requirements.

Even if you are not required to join MTD immediately, preparing early can help you avoid problems later. Many businesses are already moving towards digital accounting software because it provides a clearer view of income, expenses and business performance throughout the year.

For accountants and bookkeepers, helping clients prepare early also reduces the pressure of collecting records and correcting missing information before deadlines.

Why accounting software is important for MTD quarterly reporting

One of the biggest changes with MTD is the move towards keeping financial records digitally throughout the year.

Using HMRC-recognised accounting software can make quarterly reporting easier by helping you:

• • Record income and expenses as they happen
  • Keep digital records of financial transactions
  • Reduce manual data entry
  • Match bank transactions with your accounts
  • Keep your accountant updated with accurate information
  • Prepare quarterly updates using your latest records

Without suitable software, businesses may spend more time manually collecting information before each deadline.

The right accounting software helps turn quarterly reporting into a regular part of your financial routine rather than a stressful task every few months.

How to prepare before your first quarterly return

The first MTD quarterly deadline may seem far away, but businesses that prepare early will have a smoother transition.

Start by checking whether your income means you will need to follow MTD rules. If you are unsure, speak with your accountant.

You should also:

• • Choose HMRC-recognised accounting software.
  • Start keeping digital records of income and expenses.
  • Store invoices and receipts electronically.
  • Reconcile bank transactions regularly.
  • Review your accounts every month.
  • Make sure your accountant can access the information they need.

Businesses that already maintain accurate digital records usually find MTD quarterly reporting much easier because their information is ready before each deadline.

Before vs Under Making Tax Digital

Making Tax Digital changes how businesses keep records and report income to HMRC. Instead of relying mainly on annual tax returns and manual records, businesses must keep digital records and submit updates more regularly throughout the year.

Why you shouldn’t wait until the last minute

Although the first mandatory filing starts from April 2026, many businesses are delaying their preparation.

That could become a costly mistake.

Moving to new software, learning how digital record keeping works and understanding the reporting requirements all take time. Waiting until your first deadline approaches increases the risk of errors, missed submissions and unnecessary pressure.

If you’ve been wondering when quarterly tax returns start, now is also the right time to review your bookkeeping process. Whether you manage your own accounts or work with an accountant, preparing early will make Making Tax Digital quarterly returns much easier and help you stay compliant from the very first submission.

Get ready for Making Tax Digital today

Although MTD for Income Tax begins in April 2026, many businesses are still waiting before making changes. However, delaying preparation could create unnecessary pressure when the first quarterly deadline arrives.

Businesses will need time to choose suitable HMRC-compatible accounting software, understand the new reporting process, and organise their financial records. Starting early gives you the opportunity to test your systems, fix any issues, and make sure your income and expense records are accurate before submitting information to HMRC.

Making Tax Digital quarterly returns will change how many self-employed individuals and landlords manage their financial records. By preparing now, you can keep your financial information updated throughout the year, make quarterly reporting easier, and avoid rushing when deadlines arrive.

Choosing the right MTD-compliant software early and building good digital record-keeping habits will help you enter the new system with confidence and make the transition to MTD much smoother.

Conclusion

Making Tax Digital quarterly returns will change how many self-employed individuals and landlords manage their Income Tax reporting. With the first phase starting on 6 April 2026 and the first quarterly update due on 7 August 2026, businesses should start preparing now rather than waiting until the deadline is approaching.

Moving to HMRC-compatible accounting software, keeping digital records and reviewing your finances regularly can help you avoid last-minute pressure and make each quarterly submission easier.

The earlier you prepare, the more time you have to understand the new process, organise your records, and choose software that fits your business needs. By taking action now, you can be ready for MTD reporting and maintain accurate financial records throughout the year.

Frequently asked questions

1. Do you pay tax quarterly with Making Tax Digital?
Ans. No. Making Tax Digital quarterly returns do not mean you need to pay tax every three months. The quarterly updates are only used to report your income and expenses to HMRC. Your usual tax payment deadlines remain the same.

2. Is Self Assessment changing to quarterly?
Ans. Yes, for people who fall under MTD for Income Tax rules. Instead of submitting only one annual Self Assessment return, affected individuals will need to send quarterly updates to HMRC using compatible software, along with a final declaration.

3. Do all self-employed people have to go digital?
Ans. No. Only self-employed individuals and landlords who meet HMRC’s qualifying income thresholds need to follow MTD rules initially. The rollout is being introduced in stages based on income levels.

4. When do Making Tax Digital quarterly returns start?
Ans. The first phase starts on 6 April 2026 for self-employed individuals and landlords with qualifying income above £50,000. The first quarterly update will be due on 7 August 2026

5. How often do I need to submit MTD updates?
Ans. Under MTD for Income Tax, you will normally submit four quarterly updates each tax year, followed by an End of Period Statement (where required) and a Final Declaration.

6. What happens if I miss an MTD quarterly deadline?
Ans. Missing deadlines may result in compliance issues or penalties. Keeping your records updated throughout the year can help you avoid last-minute problems.