Taxpayers who are within MTD income tax must send quarterly updates of their income and expenses for MTD sources (ie, sole trades and property businesses) using compatible software. The deadline for submitting the first quarterly update for the tax year 2026/27 is 7 August 2026. 

One key difference between VAT and MTD income tax is that MTD income tax quarterly updates are cumulative, as shown in the table below. Each quarterly submission overwrites the previous submission. Taxpayers and agents should ensure they are aware of this, particularly where bridging software is used to submit summaries of income and expenditure that they have prepared. 

*Calendar quarters may be used where the software supports reporting on this basis and an election is made in the software before the first quarterly update is submitted.

Detailed guidance on quarterly updates can be found in the faculty’s TAXguide 01/25. TAXguide 04/25 contains answers to questions asked at webinars and questions put to HMRC.