DIGITAL RECORDS · 4 UPDATES
MTD quarterly updates explained
Understand the four in-year updates, compatible-software requirement and final declaration.
Your MTD verdict
Qualifying income
£52,000 / year
Checking live mandation date…
- Phase
- P1
- Income test
- Strictly over £50,000
- HMRC tests
- 2024/25 Self Assessment return
HMRC normally tests qualifying income using the previous tax year’s Self Assessment return.
What you must do
- Keep digital records
- Send 4 quarterly updates a year (deadlines 7 Aug, 7 Nov, 7 Feb, 7 May) via MTD-compatible software
- Submit a final declaration by 31 January after the tax year (replaces the Self Assessment tax return)
Key scope notes
- Qualifying income means combined GROSS income from self-employment (turnover) + property (rental), before expenses.
- Excluded: employment / PAYE wages, dividends, company director salary, company-held (incorporated) property income.
- Partnerships have a separate MTD timeline — not covered here.
- Jointly-owned property and multiple businesses can require additional review.
General information, not tax advice. Check GOV.UK / your accountant.
Free MTD readiness checklist
Get the four-page setup guide by email.
What to know
- Keep digital records for each self-employment and property business.
- Send four quarterly updates each year through MTD-compatible software.
- Submit a final declaration each year, replacing the Self Assessment tax return.
- Standard quarterly periods (6 Apr-5 Jul, 6 Jul-5 Oct, 6 Oct-5 Jan, 6 Jan-5 Apr) have filing deadlines of 7 August, 7 November, 7 February and 7 May. The final declaration is due by 31 January after the tax year.
Key dates
| Phase | Qualifying income | From | Tested on |
|---|---|---|---|
| 1 | Over £50,000 | 6 April 2026 | 2024/25 return |
| 2 | Over £30,000 | 6 April 2027 | 2025/26 return |
| 3 | Over £20,000 | 6 April 2028 | 2026/27 return |
MTD quarterly updates explained FAQs
How many updates are required?
Four quarterly updates per year.
How are updates sent?
Through MTD-compatible software.
Do quarterly updates replace the final declaration?
No. A final declaration is still required each year.
Does the final declaration replace Self Assessment?
The stated rule says it replaces the Self Assessment tax return.
When are the quarterly updates due?
Standard deadlines are 7 August, 7 November, 7 February and 7 May; the final declaration is due by 31 January after the tax year.
Related MTD guides
Sole traders · Landlords · Thresholds · Quarterly updates · Complete guide