Is a quarterly update a tax return?

No. HMRC describes quarterly updates as summaries of income and expenses, not tax returns. You still submit one tax return a year by 31 January.

Do I pay tax every quarter under MTD?

No. Making Tax Digital does not change when you pay tax or the dates payments are due.

What is Making Tax Digital for Income Tax?

Checked against GOV.UK on 14 August 2026

Short answer

A legal requirement to keep your self-employment and property records in software and send HMRC a short summary every 3 months — on top of a tax return, not instead of one.

Making Tax Digital for Income Tax changes how sole traders and landlords record and report income. Three things change: your records move into software, you send four summaries a year, and your tax return is filed from that same software.

The three changes, and nothing else

1. Digital records

You create and store a digital record of every item of self-employment and property income and expense, in software that works with Making Tax Digital. Each record needs the amount, the date, and the category.

2. Quarterly updates

Every 3 months your software totals those records by category and sends the totals to HMRC. HMRC never sees individual receipts or invoices. These are summaries — HMRC's own guidance is explicit that they are not tax returns, and you make no accounting or tax adjustments before sending one.

3. The tax return moves into the software

After the fourth update you add your other income, make your adjustments, and submit the tax return from the software. The deadline does not move: 31 January after the end of the tax year.

What does not change

The tax return deadline is still 31 January.
The dates you pay tax do not change, and payments on account work as before.
You still keep your original paperwork — bank statements, invoices, receipts — exactly as you do now for Self Assessment.
Quarterly updates do not mean paying tax quarterly.

Who it applies to right now

Sole traders and landlords registered for Self Assessment whose qualifying income is over the threshold for their year:

Qualifying income	On the tax return for	You must use MTD from
Over £50,000	2024 to 2025	6 April 2026 — already in force
Over £30,000	2025 to 2026	6 April 2027
Over £20,000	2026 to 2027	6 April 2028
£20,000 or less	—	Automatically exempt, unless your circumstances change

Partnerships do not currently need to use it. HMRC has said it will set out the timeline for partnerships later.

Sources

General information about UK tax rules, not tax advice. Your own circumstances and HMRC's official guidance govern your position. If you are unsure, speak to an accountant or contact HMRC. Tax rules change — if this page is more than a few months old, check the GOV.UK pages linked above. Found an error? Email hello@getaxionlabs.com and we will correct it.

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