Making Tax Digital (MTD) for Income Tax can sound like one more thing that’s going to eat your evenings. More deadlines, more admin, more “where did I put that receipt?” moments.
But here’s the good news: if you plan your admin around the MTD timeline (instead of reacting to it), quarterly updates become a routine — not a quarterly meltdown.
This article breaks down what the MTD schedule looks like, what you’ll actually be submitting, and a simple way to organise your weekly and monthly admin so you stay compliant without it taking over your life.
What MTD for Income Tax actually means (in plain English)
MTD for Income Tax Self Assessment (often called MTD ITSA) means:
- You keep digital records of your income and expenses
- You send quarterly updates to HMRC using compatible software
- You complete end-of-year steps (an end-of-period statement and final declaration)
It’s aimed mainly at sole traders and landlords (property income), and it’s being rolled out in phases based on how much “qualifying income” you have.
If you’re already VAT-registered, you’ll know the feeling — MTD has already been in place for VAT for a while, and it’s one of the reasons we put strong systems around clients’ VAT Returns.
The MTD timeline: the dates you need to plan around
When you’ll need to start (phased roll-out)
MTD for Income Tax is coming in stages:
- From 6 April 2026 if your qualifying income is over £50,000
- From 6 April 2027 if your qualifying income is over £30,000
- From 6 April 2028 if your qualifying income is over £20,000
(“Qualifying income” is typically your gross income from self-employment and/or property, not your profit.)
And yes — it’s expected to affect a lot of people over time. Recent coverage has put the eventual impact at close to 3,000,000 taxpayers as thresholds are reduced.
What “quarterly” means in practice (and the deadlines)
Quarterly updates follow the tax year, and the first year (for those starting in April 2026) looks like this:
- Quarter 1: 6 April to 5 July 2026 → due 7 August 2026
- Quarter 2: 6 July to 5 October 2026 → due 7 November 2026
- Quarter 3: 6 October 2026 to 5 January 2027 → due 7 February 2027 (deadline pattern: 1 month after quarter end)
- Quarter 4: 6 January to 5 April 2027 → due 7 May 2027 (same pattern)
Your exact dates can vary depending on what HMRC sets for your reporting periods, but the key planning point stays the same: there’s a monthly-ish deadline rhythm after each quarter ends.
Penalties: what to know for year 1
If you’re mandated into MTD from 6 April 2026, the government has said it will not apply late submission penalties for quarterly updates during the 2026–27 tax year (that’s the first year for the 2026 cohort).
That’s not a reason to ignore the process — it’s your chance to bed in a routine without fear that a messy first quarter becomes a penalty problem.
What a quarterly update is (and what it isn’t)
This is where people get stressed for no reason.
A quarterly update is not your full tax return. It’s not the moment everything must be perfect. It’s a summary of income and expenses based on your digital records for that period.
The “final” accuracy happens later through the end-of-year steps (end-of-period statement and final declaration).
So your goal each quarter is:
- Keep records tidy
- Categorise income/expenses consistently
- Submit the update without a mad scramble
The real reason admin takes over: you’re trying to do quarterly work once a quarter
Quarterly updates feel painful when you haven’t looked at your books for 3 months.
They feel manageable when you’ve been doing small, regular admin all along.
So the aim is simple:
Weekly habit + monthly tidy + quarterly review
That’s the whole system.
You don’t need to become a bookkeeper. You need a routine that’s realistic.
If you want a full support setup around this (software, workflow, and deadlines), start with our Services and we’ll point you to the right level of help.
Your no-drama MTD admin routine (what to do and when)
Weekly (15–30 minutes): keep the wheels turning
Pick a day and stick to it. Friday afternoon, Monday morning, Sunday evening — doesn’t matter. Consistency matters.
Do these 4 things:
- Capture receipts and invoices immediately
If it’s in your pocket, it’s not in your records. - Check your bank feed and categorise transactions
Little and often beats a 3-hour catch-up session. - Chase anything unpaid
Cashflow chaos creates admin chaos. - Flag “odd” transactions now
Refunds, personal spends, duplicates — sort them while you still remember.
If you’re using QuickBooks, this weekly rhythm is exactly what makes the system work properly long-term — and it’s where our Quickbooks Accountants support saves you time (and mistakes).
Monthly (45–60 minutes): tidy, reconcile, and get ahead
Once a month, do a slightly deeper clean-up:
- Reconcile your bank (so the balances make sense)
- Check your main expense categories (anything creeping up?)
- Store key documents (insurance, finance agreements, big purchases)
- Make a simple tax set-aside plan so you’re not caught out later
This is also where good bookkeeping stops being “admin” and starts being genuinely useful for running your business. If you want the done-for-you version (plus clean records ready for MTD updates), see Book Keeping.
Quarterly (60–90 minutes): review and submit
Quarterly is where you:
- Make sure all income is included (invoices, card payments, rent)
- Check expense categories are consistent
- Upload/attach anything missing (receipts, statements)
- Submit the quarterly update through software
If weekly + monthly is consistent, quarterly is just a review and a click — not a rebuild.
How to set yourself up so quarterly updates are easy
1) Separate your money (even if you’re not a limited company)
If you mix personal and business spending in one account, you create admin for yourself every single week.
A separate bank account means:
- Cleaner records
- Faster categorisation
- Fewer “what was that?” moments
If you’re a sole trader and want a simple, supported setup, our Sole Trader Accounting service is built around exactly this kind of “keep it simple, keep it compliant” approach.
2) Use software that matches how you actually work
Don’t choose accounting software based on what someone else likes. Choose it based on how you operate:
- Mostly on your phone? You need easy receipt capture.
- Lots of invoices? You need clean invoicing and payment matching.
- High volume transactions? You need rules and automation.
HMRC’s push is software-led, so the smoother you make your system, the less effort MTD adds.
3) Standardise your categories (so you stop re-deciding everything)
One of the biggest time-wasters is thinking, every single time:
“Is this software?”
“Is this marketing?”
“Is this office cost?”
Pick your categories. Stick to them. Your quarterly updates become faster because the data is cleaner.
4) Create an “admin inbox” and stop letting documents scatter
MTD admin feels heavy when your paperwork is everywhere.
Try this:
- 1 email folder called “MTD”
- 1 cloud folder called “Tax Year 2026–27”
- 1 rule: anything business-related goes in there immediately
If you want useful places to pull key HMRC resources from (without digging around), our Useful Links page is a handy bookmark.
A simple quarterly planning calendar (so you’re never rushing)
Here’s a practical approach that keeps you off the deadline edge.
Your quarterly schedule
- Week 1 after quarter end: collect missing bits and upload receipts
- Week 2: reconcile and review
- Week 3: submit the update
- Week 4: buffer week (because life happens)
That “buffer week” is the difference between calm admin and last-minute stress.
The 3 situations that usually cause quarterly chaos (and how you avoid them)
1) You’ve got multiple income streams
Side hustle + consulting + a rental property? Normal. But it needs structure.
The trick is to:
- Separate income types in software
- Keep each income stream tidy (so your quarter doesn’t become a puzzle)
If you’re not sure what support fits your setup, start with Who We Help.
2) You’re a contractor/freelancer and your months don’t look the same
Some months are quiet. Some months are full-on. That’s why the weekly routine matters — it keeps things steady even when work isn’t.
If that’s you, our Contractors support is designed to keep you compliant, organised, and not buried in admin.
3) You’re trying to run the business and do “finance” at the same time
You don’t need to do everything yourself.
A good accountant doesn’t just file things once a year — they help you avoid problems building up quietly. If you want a clear picture of what support should look like beyond year-end, read What an accountant actually does for an SME in the UK.
Where quarterly updates can actually help you (yes, really)
MTD is designed to keep your records up to date. When your numbers are up to date, you can make better decisions:
- Are you pricing properly?
- Are costs rising faster than sales?
- Are you setting aside enough for tax?
This is also why management reporting matters. If you want your bookkeeping to turn into something useful (not just compliance), take a look at How online accountants use management reports and our Financial Reports.
The most important mindset shift: “little and often” beats “big and stressful”
Quarterly updates aren’t meant to ruin your weekends.
They become manageable when you stop treating bookkeeping like a once-a-quarter event.
If you do:
- 15–30 minutes weekly
- 45–60 minutes monthly
- 60–90 minutes quarterly
…then MTD becomes part of your rhythm, not a constant looming deadline.
Next steps
If you want your MTD setup to be smooth from day 1 — software, record-keeping routine, and quarterly deadlines handled properly — we can help you put a simple system in place and keep it running.
Get in touch via Contact Us and we’ll help you plan your admin around MTD so it doesn’t take over.
