Making Tax Digital: quarterly update returns

HMRC has confirmed that from April 2026 making tax digital for income tax self-assessment (MTD SA) will become mandatory.

Who this applies to

From April 2026, taxpayers who are subject to income tax on their trade, profession, property income or business, and who have income above £50,000, must keep their accounting records electronically. This needs to be done either using suitable software or on a spreadsheet.

You must also file quarterly update returns to HMRC with details of your income and expenditure, as well as any other information specified by HMRC.

The date this becomes a legal requirement for self-employed taxpayers and landlords with income between £30,000 and £50,000 is April 2027.

There are currently no plans for MTD SA to be implemented for taxpayers with income below £30,000.

Changes to quarterly updates

HMRC has also published an update notice announcing that quarterly updates will be cumulative. This will allow errors in one quarter’s reporting to be updated in the following quarter, removing the need to resubmit previous quarters.

The requirement to submit an end of period statement in addition to quarterly returns has also been removed, as planned.

Taxpayers who file self-assessment tax returns with income above £50,000 need to prepare for MTD SA now. Get in touch with our experts who can advise you on the best options for your business.