Digital records.
Every business income and expense kept in MTD-compatible software. Not a shoebox. Not a spreadsheet on its own.
Making Tax Digital · explained plainlyThe HMRC notification.
The HMRC notification.
Without the panic.
HMRC’s quietly rewriting how the self-employed file tax. No more paper return. Quarterly updates filed through your Personal Tax Account — by approved software only. Here’s what it actually means for you, and how I take the dread out of it.
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Home › Self Assessment › Making Tax Digital
Your Income Tax: quarterly updates
UPDATE DUE — 14 DAYSQ2 update · Jul – Sep 2026Deadline 7 November 2026
DUEQ1 update · Apr – Jun 2026Submitted 4 August 2026
FILEDKwiloI’ve got this.
Quarterly figures are 94% ready. One tap when you’re happy.
In one paragraph
What is MTD, really?
MTD stands for Making Tax Digital. It’s HMRC’s long-running project to drag tax filing into the 21st century — paper returns out, software-based digital records in.
If you’re self-employed or a landlord earning above the threshold, MTD for Income Tax (often shortened to MTD for ITSA) replaces the once-a-year Self Assessment with four quarterly updatesplus a final declaration. You can’t do it on paper. You can’t do it in a spreadsheet. It has to go through HMRC-recognised software, talking directly to their systems.
“You won’t fill in a form. You won’t post anything. Your software does it.”
That last bit’s the bit nobody quite explains in the letters. It’s not extra paperwork — it’s a different rhythm. Done right (read: with the right tool), it’s actually less work than scrambling to find a year’s worth of receipts every January.
The roll-out
When does it hit you?
HMRC’s phasing MTD for ITSA in by income band. Find your number and the date you need to be ready by.
April 2026
£50k+
The first wave.
If your self-employment or rental income for 2024–25 was over £50,000, you're in. Your first quarterly update is due 7 August 2026.
● Live nowApril 2027
£30k+
The second wave.
Income over £30,000 for 2025–26? You're in from April 2027. A year to get your books in order.
Next upApril 2028
£20k+
The third wave.
Confirmed in the 2024 Budget. Anyone over £20,000 from April 2028. That's most sole traders.
ConfirmedTBC
< £20k
Under the threshold.
Not in MTD yet. But once you're using me, you're already keeping the right kind of records — so when it's your turn, you're ready.
OptionalThe four rules
What HMRC actually asks of you.
Four things, that’s it. The rest is software — and that’s my job.
Quarterly updates.
Four times a year, send a summary of your income & expenses to HMRC. Due roughly a month after each quarter ends.
Final declaration.
Once a year, confirm the figures, add anything else (savings, dividends, pensions) and submit. Replaces Self Assessment.
Approved software.
Has to go through software HMRC has officially recognised. Free spreadsheets don't cut it any more.
How I handle it
Quarter end is a Tuesday afternoon.
Not a panic. Not a weekend lost to receipts. Here’s how I quietly take care of each rule, so you barely notice it’s happening.
01
Digital records, kept as you work.
Every quote, invoice, receipt and payment lands in the right tax category the moment it's created. No end-of-year cleanup.
02
Quarterly summary, built in the background.
By quarter end you're 90% there. Review what I've flagged, tap submit.
03
Files direct to HMRC.
HMRC-recognised, signed in the once, secure. No third-party portal, no copy-and-paste.
04
Tax provision set aside.
I quietly ring-fence what you'll owe, so the bill at the end of the year isn't a shock.
05
Accountant access — free.
Bring your accountant in. They can see, comment, sign-off, or submit for you. They can't see your settings or card details.
You won’t fill in a form.
No “MTD screen” to learn. You quote, work, invoice, get paid — the way you always have. I do the filing in the background. Your only job at quarter end is a quick nod.
HMRC-recognised software for Income Tax Self Assessment.
I appear on HMRC’s list of approved providers. That means you can use me, on its own, to meet every MTD ITSA obligation. No bolt-ons, no second app.
Miss a quarter? Points-based fine.
HMRC’s new system gives you a point per missed deadline. Hit 4 points across a year and it’s a £200 fine. I’ll nudge you a fortnight, a week, and a day before — so you won’t.
The questions people ask me first.
I've had an accountant for years. Does this change anything?
Not really — if anything it makes their life easier. Accountant access is free and unlimited on Kwilo, and they can do your quarterly updates and final declaration on your behalf. Quite a few accountants prefer it, because the records arrive sorted instead of in a carrier bag every January.
What counts as “income” for the threshold?
Your gross self-employment turnover plus any rental income — not profit. So if you turned over £52,000 with £8,000 of expenses, you're in the £50k+ wave even though your profit was £44,000. HMRC look at the turnover number on your last filed Self Assessment to decide.
Do I need to file every three months even if nothing happened?
Yes. Even a quiet quarter needs a “nil” or near-nil submission. It takes me about two seconds to file — but it does have to be filed.
What about VAT MTD — is that the same thing?
Different sibling. MTD for VAT has been live since 2019 for VAT-registered businesses. MTD for Income Tax (this page) is the new one rolling out for self-employed people and landlords. I handle both — and if you're in both, you only sign in once.
What if I'm below the threshold?
You're not legally required to use MTD-compatible software — yet. But you can opt in voluntarily, and a lot of sole traders do, just to keep the records tidy. Either way, using me now means when your wave arrives, nothing changes for you.
Can HMRC see my bank account?
No. They see the summary figures you submit each quarter — income, expenses, totals. Not transactions, not bank balances. Your records stay with me; only the summary travels.
Not tax adviceThis page explains MTD in plain English, based on HMRC guidance as of 2026. Rules and dates can change — always check gov.uk/making-tax-digital or speak to your accountant for advice on your specific situation.
Get ahead of itSort it now.
Sort it now.
Forget about it later.
The people calmest about MTD are the ones who started a year before they had to. Be one of those.
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