MTD for Income Tax quarterly updates, prepared for your review
For UK practices with sole traders and landlords in MTD for Income Tax (mandatory from 6 April 2026 above £50,000 of qualifying income, from April 2027 above £30,000 and from April 2028 above £20,000): we prepare the quarterly updates and the digital records behind them in your software (IRIS, TaxCalc or BTCSoftware, with Xero or QuickBooks Online for the records). You review, approve and submit as the client’s agent.
Thresholds and quarterly deadlines
Qualifying income is gross income (turnover or rent before expenses) from self-employment and UK and foreign property combined. Employment income, dividends and partnership profit shares are not counted.
| From | Qualifying income over | Based on |
|---|---|---|
| 6 April 2026 | £50,000 | 2024/25 Self Assessment return |
| 6 April 2027 | £30,000 | 2025/26 Self Assessment return |
| 6 April 2028 | £20,000 | 2026/27 Self Assessment return |
Quarterly updates are due by 7 August, 7 November, 7 February and 7 May for each business and property income source. The tax return is submitted through the software by 31 January after the tax year ends (31 January 2028 for 2026/27). Figures from HMRC guidance as of 14 October 2026; check GOV.UK for each client.
Quarterly work without the quarterly scramble
Records and updates
- Digital records kept in Xero or QuickBooks Online, with bank reconciliations
- Quarterly update preparation for each business and property income source
- Cleanup and catch-up to get records MTD-ready
- Categorisation mapped to your house rules
Agent role and judgement calls
- You stay the agent with HMRC and submit everything yourself
- Sign-up and authorisation through your agent services account
- Decisions on basis, expenses and property income
- Final review and approval of every update
Use the first year well
No penalty points for late quarterly updates in 2026/27, although updates must still be sent before the return can be filed. From 2027/28 each missed deadline earns a point, with a £200 penalty at 4 points. Late returns and late payments are still penalised.
Related reading
The £30,000 group joins in April 2027. Try us free for 20 hours.
Email info@taxbrewglobal.com. A short call first, then a mutual NDA before any data is shared.
Questions, answered
Who submits to HMRC?
You do. We prepare the quarterly updates and SA returns in your software. You review, approve and submit as the client’s agent.
Which software do you use for MTD and Self Assessment?
Yours: IRIS, TaxCalc or BTCSoftware, with Xero or QuickBooks Online for the records. If you use something else, ask us and we’ll say honestly whether we can work in it.
When does MTD for Income Tax apply to a client?
From 6 April 2026 for sole traders and landlords with qualifying income over £50,000 (based on the 2024/25 return), from 6 April 2027 over £30,000 and from 6 April 2028 over £20,000. Qualifying income is gross self-employment and property income combined. Check HMRC guidance for each client.
Are there penalties for late quarterly updates in 2026/27?
Not penalty points: 2026/27 is a soft-landing year for late quarterly updates, although updates must still be sent before the return can be filed. From 2027/28 each missed deadline earns a point, and a £200 penalty applies at 4 points. Late returns and late payments are still penalised.