# Making Tax Digital for Income Tax: Quarterly Update Deadlines

Discover the critical deadlines, statutory rules, and calendar election options for MTD for Income Tax quarterly updates, including the 2026/27 timeline and rules for multiple income sources.

**Published:** 2026-07-03  
**Updated:** 2026-07-05  
**Source:** https://aztajournal.com/gb/mtd-income-tax-quarterly-deadlines

---

> This guide outlines the critical deadlines and statutory rules for Making Tax Digital (MTD) for Income Tax quarterly updates. Learn how default and calendar quarters operate, how multiple income sources increase your submission volume, and how HMRC is applying penalties for the 2026/27 tax year.

Making Tax Digital for Income Tax Self Assessment (MTD ITSA) requires self-employed individuals and landlords to submit quarterly updates to HM Revenue and Customs (HMRC). These updates must be sent digitally using compatible software by the strict statutory deadlines of 7 August, 7 November, 7 February, and 7 May. Failing to understand these dates and rules can lead to compliance issues as the UK transitions to digital tax reporting.

## Key Takeaways: MTD ITSA Quarterly Submissions

The core rules, deadlines, and requirements for MTD quarterly updates under the new digital tax regime can be summarised as follows:

1. You must submit four digital quarterly updates per tax year for each individual business or property income source.
2. The standard statutory submission deadlines are fixed on the 7th of August, November, February, and May.
3. Quarterly updates are brief summaries of overall income and expenditure rather than formal, complete tax returns.
4. An annual Final Declaration is still required by 31 January following the end of the relevant tax year to finalise your tax liability.

## What are the quarterly updates under MTD for Income Tax?

An MTD quarterly update is a digital summary of your business or property income and expenses submitted directly to HMRC every three months through compatible software.

Under the Income Tax (Digital Requirements) Regulations, these updates are not full, final tax returns. They simply provide HMRC with totals for various income and expense categories, meaning you do not need to make complex tax adjustments or accounting trial balance corrections at this stage of the quarterly reporting cycle.

## When are MTD quarterly updates due?

Standard quarterly updates are due by the 7th day of the month following the end of each default tax year quarter.

The default quarters align with the conventional UK tax year which starts on 6 April. Table 1 of the Income Tax (Digital Requirements) Regulations defines the default periods and deadlines as follows:

| Quarter | Period Covered | Statutory Submission Deadline |
| --- | --- | --- |
| Quarter 1 | 6 April to 5 July | 7 August |
| Quarter 2 | 6 July to 5 October | 7 November |
| Quarter 3 | 6 October to 5 January | 7 February |
| Quarter 4 | 6 January to 5 April | 7 May |

## How do calendar quarters affect submission dates?

Electing to use calendar quarters shifts your quarterly period end dates to the final day of each calendar month while leaving the final software submission deadlines unchanged.

According to Table 2 of the Income Tax (Digital Requirements) Regulations, you can elect to align your digital record-keeping with standard calendar months. This is often more convenient for commercial accounting packages, though the actual deadlines to send the data remain exactly the same:

| Quarter | Calendar Period Covered | Statutory Submission Deadline |
| --- | --- | --- |
| Quarter 1 | Start of period to 30 June | 7 August |
| Quarter 2 | 1 July to 30 September | 7 November |
| Quarter 3 | 1 October to 31 December | 7 February |
| Quarter 4 | 1 January to 31 March | 7 May |

## How do multiple income sources affect your submission volume?

You must submit a separate set of four quarterly updates for every individual qualifying business or property income source that you operate.

As explained in the ICAEW TAXguide 01/25, MTD obligations apply per income stream rather than per individual taxpayer. This means that having multiple sources of income directly escalates your annual filing workload:

- A sole trader with one business must submit 4 quarterly updates in total each tax year.
- An individual operating as a sole trader who also receives UK property rental income must submit 8 quarterly updates each year (4 for the business and 4 for the property).
- A landlord letting out both a UK residential property and a separate holiday home may require separate digital records and submissions depending on how the portfolios are structured.
- All separate streams must eventually be brought together in your single, final end-of-year tax declaration.

## What is the timeline for MTD for Income Tax in 2026/27?

The first mandated tax year for MTD ITSA begins on 6 April 2026 and features a overlapping transition from the legacy Self Assessment regime.

According to official HMRC guidelines, businesses and landlords with qualifying income over the legislative thresholds must carefully manage their digital filing tasks. The timeline for the transition year is structured as follows:

1. 6 April 2026: You must begin keeping digital records for all digital income sources using MTD-compatible software.
2. 7 August 2026: Your first quarterly digital update is due to HMRC.
3. 7 November 2026: Your second quarterly digital update is due to HMRC.
4. 31 January 2027: You must file your final Self Assessment return for the 2025/26 tax year under the traditional paper or online rules.
5. 7 February 2027: Your third quarterly digital update is due to HMRC.
6. 7 May 2027: Your fourth quarterly digital update is due to HMRC.
7. 31 January 2028: Your final digital declaration for the 2026/27 tax year is due to HMRC, fully replacing the old Self Assessment return.

## What are the penalties for late quarterly updates?

HMRC operates a points-based financial penalty system for late MTD submissions, but has introduced a temporary safety easement for the first mandated year.

To help taxpayers adjust to the new system, official GOV.UK guidance confirms that HMRC has implemented a one-year easement for the 2026/27 tax year. Under this easement, late submission penalty points will not be applied to missed or delayed quarterly updates for those mandated to join from April 2026. However, you must note that standard penalties and interest charges still apply to any late payments of tax and late final declarations.

### Can I submit my MTD quarterly updates early?

Yes. You can submit your digital updates up to 10 days before the quarter ends, provided you reasonably believe that the update covers all transactions for that specific period.

### Do inaccuracy penalties apply to quarterly updates?

No. Because quarterly updates are simple, non-binding summaries of your income and expenses rather than final tax computations, HMRC does not apply inaccuracy penalties to these specific submissions.

### Does a quarterly update replace the final 31 January declaration?

No. The quarterly updates only provide transactional summaries. You must still submit a Final Declaration by 31 January following the tax year to claim reliefs, make tax adjustments, and finalise your tax bill.

### How do I elect to use calendar quarters instead of default tax quarters?

You must make this election through your MTD-compatible software before you submit your first quarterly update for that specific tax year. Once made, the calendar election automatically carries forward to future tax years.