MTD for Income Tax Quarterly Deadlines Explained
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Introduction
If you’re a sole trader or landlord trying to get your head around Making Tax Digital for Income Tax, you’re probably drowning in conflicting information — much of it describing a version of the system that was redesigned before it launched.
This guide covers the quarterly update cycle: what each update contains, exactly when it’s due, how the year-end works now, and what happens if you’re late. It also flags two things most guides still get wrong, either of which could cost you.
The headline dates: quarterly updates are due 7 August, 7 November, 7 February and 7 May. Not the 5th, which appears in a surprising number of guides. Then a single Final Declaration by 31 January following the tax year end.
Who Does MTD for Income Tax Apply To?
The £50,000 Threshold — Live Since April 2026
MTD for Income Tax became mandatory on 6 April 2026 for self-employed individuals and landlords with qualifying income above £50,000.
Qualifying income means gross income from self-employment and property — turnover before expenses, not profit. A business turning over £35,000 alongside a rental property generating £18,000 gives qualifying income of £53,000, and is in scope.
If that’s you, your first quarterly update was due by 7 August 2026 and your second is due by 7 November 2026.
Later Phases
Qualifying income above £30,000 comes in from April 2027, with £20,000 indicated for April 2028. Confirm the current position on GOV.UK, as the schedule has moved before.
Below the current threshold you aren’t required to comply, though you can join voluntarily.
What Is a Quarterly Update?
A quarterly update is not a tax return. It’s a summary of income and expenses submitted digitally through compatible software. You aren’t paying tax on the back of it and you aren’t finalising your liability — you’re giving HMRC a running picture.
Each update contains total income for the period and total expenses categorised under HMRC’s standard headings. It does not include disallowable expense adjustments, capital allowances, losses brought forward or other year-end accounting adjustments. Those are handled at year end.
If you have more than one business or property, you submit separate updates for each source.
Updates Are Cumulative — a Detail Most Guides Miss
This trips people up. The update periods are cumulative year-to-date, not discrete three-month blocks:
- Q1 covers 6 April to 5 July
- Q2 covers 6 April to 5 October
- Q3 covers 6 April to 5 January
- Q4 covers 6 April to 5 April
Each submission restates the whole year so far rather than just the latest three months.
The practical upside is real: if you get a figure wrong in Q1, correcting it in your records means the fix flows through automatically at Q2. There’s no separate amendment process for a mistake spotted mid-year. That’s a genuine simplification, and worth knowing before you panic about an error.
The Quarterly Update Deadlines
| Quarter | Standard period covered | Submission deadline |
|---|---|---|
| Q1 | 6 April – 5 July | 7 August |
| Q2 | 6 April – 5 October | 7 November |
| Q3 | 6 April – 5 January | 7 February |
| Q4 | 6 April – 5 April | 7 May |
The pattern is simply the 7th of the month following the quarter end.
For the 2026/27 tax year that means 7 August 2026, 7 November 2026, 7 February 2027 and 7 May 2027, with the Final Declaration due 31 January 2028.
You can submit early — generally up to ten days ahead — where you know the period’s figures are complete.
The Calendar Quarter Election
You can elect in your software to use calendar periods instead: quarters ending 30 June, 30 September, 31 December and 31 March, rather than the 5th.
The deadlines do not change. They remain 7 August, 7 November, 7 February and 7 May either way. What changes is the period-end date, which effectively gives calendar-quarter filers a few extra days to reconcile. The election is about which period-end suits your bookkeeping, not about buying more time. Make it before your first update.
A Word on the Transition Year
The 2026/27 year is genuinely confusing because two systems overlap. On 31 January 2027 you’ll file your 2025/26 Self Assessment return the old way, along with the balancing payment and any first payment on account — while simultaneously running quarterly updates for 2026/27. Your Q3 update then falls a week later, on 7 February 2027.
Also worth knowing: MTD changes how you report, not when you pay. Payments on account remain due 31 January and 31 July.
The Year-End: What Actually Happens Now
Here is where most guides on this subject, including many still published today, describe a process that no longer exists.
The End of Period Statement Has Been Removed
The original MTD design had three stages: quarterly updates, an End of Period Statement for each income source, then a Final Declaration.
EOPS was scrapped. Following the 2023 Autumn Statement, HMRC removed it entirely, on the basis that the information it captured duplicated the Final Declaration. The functions it served — year-end source adjustments, capital allowance claims and per-source confirmations — were absorbed into the Final Declaration.
This applies from the outset of mandation. There was never a period where both ran together.
The change wasn’t widely publicised, which is why EOPS still appears in older articles, some software providers’ training materials and legacy HMRC developer documentation. If a guide tells you to prepare an End of Period Statement, it’s describing a system that was abandoned before it launched.
The Final Declaration
This is now the single year-end submission, replacing both the old EOPS and your Self Assessment return. In it you:
- Make all year-end accounting adjustments — disallowable expenses, capital allowances, the Annual Investment Allowance, basis period adjustments
- Confirm all your income sources, including savings interest, dividends and pension income
- Apply reliefs and allowances across your whole income picture
- Confirm your overall tax liability
The deadline is 31 January following the end of the tax year — for 2026/27, that’s 31 January 2028. Same date as Self Assessment always was.
But not the same route. The Final Declaration must be submitted through MTD-compatible software. You cannot file it through HMRC’s existing Self Assessment online service, however many years you’ve used it.
What Happens If You’re Late?
The Soft Landing for 2026/27
Worth knowing before you worry: HMRC has indicated it won’t charge penalty points for late quarterly updates during 2026/27 for the first cohort. That’s a deliberate easing while people adjust.
Two important limits. It doesn’t cover the Final Declaration, which carries full late filing penalties and interest on unpaid tax. And it’s specific to the first year and cohort — confirm the current position on GOV.UK rather than assuming it extends.
The Points System
Beyond the soft landing, MTD uses a points-based penalty regime rather than immediate fixed fines. Each late submission earns one point. Reach the threshold — four points for quarterly filers — and you receive a £200 penalty, with a further £200 for each subsequent late submission while you remain at the threshold.
Points are cleared by submitting on time for a set compliance period with no outstanding submissions. Check the current compliance period length on GOV.UK, as it varies by submission frequency.
The grace built in is real, but it isn’t a licence to be consistently late — and the Final Declaration sits outside it entirely.
How the MTD Cycle Compares to Self Assessment
| Task | Self Assessment | MTD for Income Tax |
|---|---|---|
| In-year reporting | None | 4 cumulative quarterly updates per income source |
| Year-end adjustments | In the tax return | In the Final Declaration |
| Overall tax confirmation | Tax return | Final Declaration |
| Filing route | HMRC online portal | MTD-compatible software only |
| Key deadline | 31 January | 31 January, unchanged |
| Payment dates | 31 Jan / 31 Jul | 31 Jan / 31 Jul, unchanged |
What changes is the quarterly rhythm and the filing route. The January deadline and the payment dates are exactly as before.
What Software Do You Need?
You cannot file MTD for Income Tax updates through HMRC’s own portal — compatible software is mandatory. It connects directly to HMRC’s API.
When choosing, check that it supports MTD for Income Tax specifically. MTD for VAT approval does not carry across; they’re separate programmes with different technical requirements. Also confirm it handles multiple income sources if that applies to you, and check whether bank feeds are included, since they make quarterly record-keeping considerably less painful.
On cost, compliance needn’t be expensive:
- FreeAgent is free with a NatWest, Royal Bank of Scotland, Ulster Bank or Mettle business account — otherwise £19 a month ex-VAT for sole traders
- Zoho Books has a free plan, subject to a turnover threshold worth verifying directly, then £10 a month billed annually
- QuickBooks Sole Trader Plus is £10 a month ex-VAT
- Xero Ignite is £16 a month ex-VAT
Use HMRC’s recognised software list on GOV.UK as your starting point rather than a vendor’s marketing claims.
FAQ
When exactly are the quarterly deadlines?
7 August, 7 November, 7 February and 7 May — the 7th of the month after each quarter ends. Some guides state the 5th; that’s incorrect. The deadlines are the same whether you use standard or calendar quarters.
Do I still need to file an End of Period Statement?
No. EOPS was removed from MTD for Income Tax following the 2023 Autumn Statement, and its functions were merged into the Final Declaration. Guides still referencing it are describing an earlier design.
Do I have to submit an update even with no income or expenses?
Yes. A nil submission is still expected for any quarter with no activity, and failing to send one can earn a penalty point.
What if I make a mistake in a quarterly update?
Because updates are cumulative, correcting the figure in your records means the fix carries through at the next quarter automatically. There’s no separate mid-year amendment process.
Can my accountant submit on my behalf?
Yes, through HMRC’s agent services. It doesn’t change the deadlines, and it’s worth agreeing explicitly who is responsible for the quarterly updates — don’t assume your accountant is handling them without saying so.
Does MTD change when I pay my tax?
No. Payments on account remain due 31 January and 31 July, and the balancing payment on 31 January. MTD changes reporting frequency, not payment timing.
I’m below £50,000 — should I prepare anyway?
If you’re in the £20,000 to £50,000 range, yes. April 2027 covers £30,000-plus and April 2028 is indicated for £20,000-plus. Getting familiar with compatible software and digital record-keeping now avoids a rush later.
Conclusion
The quarterly updates themselves are deliberately simple — a summary of income and expenses, submitted four times a year, with the cumulative design meaning mid-year errors correct themselves.
Three things to take away. The deadlines are the 7th of August, November, February and May, not the 5th. There is no End of Period Statement — quarterly updates plus a Final Declaration by 31 January is the entire cycle. And the Final Declaration must go through MTD software, not HMRC’s old Self Assessment portal.
The practical next step: choose recognised software, set four calendar reminders, and if you use an accountant, agree explicitly who submits what.
Check current deadlines, thresholds and penalty details on GOV.UK before acting. This is an area where outdated information is unusually widespread, and where relying on it could cost you.
This article is general information about Making Tax Digital, not tax advice. Whether you are in scope, what counts as your qualifying income, and how the deadlines and penalties apply depend on your circumstances — check current GOV.UK guidance and consult a qualified accountant or tax adviser. Thresholds, deadlines and requirements have changed repeatedly during this rollout and may change again; confirm the current position before acting.