QUARTERLY UPDATES FOR MAKING TAX DIGITAL
INFORMATION ABOUT QUARTERLY UPDATES FOR MTD
Quarterly Updates for Making Tax Digital 2026
How They Work for Sole Traders and Landlords
Quarterly updates are one of the biggest changes under Making Tax Digital (MTD) for Income Tax.
From April 2026, if you are mandated into MTD, you will need to submit quarterly digital updates using MTD-compatible software.
But what many people don’t realise is this:
If you are both a sole trader and a landlord, each income source is reported separately.
What Are Quarterly Updates?
Quarterly updates are digital summaries of your income and expenses for a specific three-month period.
They are submitted through MTD-compatible software and are based on your digital records.
They are not full tax returns.
They are not final tax calculations.
They are summary updates built from your bookkeeping records.
Sole Traders – Your Quarterly Updates
If you are a sole trader and your 2024/25 qualifying income exceeds £50,000, you will need to:
- Keep digital records of your business income and expenses
- Submit quarterly updates for your business activity
These updates reflect your gross business turnover and expenses for that trade.
Landlords – Your Quarterly Updates
If you are a landlord and your qualifying income exceeds the threshold, you must:
- Keep digital records of rental income and property expenses
- Submit quarterly updates for your property business
These updates reflect your gross rental income and related costs.
If You Are Both a Sole Trader and a Landlord
This is where confusion often arises.
If you have:
- A sole trader business
and
- A rental property business
Each trade is treated separately for reporting purposes.
That means:
- Your sole trader activity has its own quarterly updates
- Your property income has its own quarterly updates
They are not merged into one single business update.
Both sets of figures are submitted digitally, and your overall tax position is finalised later through the Final Declaration.
Are Quarterly Updates the Same as Paying Tax Quarterly?
No.
Quarterly updates are about reporting income and expenses digitally.
Your final tax calculation still happens after the tax year ends.
Why Understanding This Matters
Many people assume:
“I’ll just submit one update every quarter.”
But if you have both business and rental income, you need to understand:
- How each income stream is recorded
- How each feeds into its own quarterly update
- How they combine at year end
Without a clear structure, this can feel complicated.
With the right method, it becomes systematic.
Practical Step-by-Step Guidance
Most online explanations describe quarterly updates in theory.
They do not show you:
- How digital records flow into each update
- How to handle cash sales, invoicing or ecommerce income
- How rental income should be structured
- How the Final Declaration brings everything together
That is exactly why I wrote:
Making Tax Digital 2026 for Sole Traders
and
Making Tax Digital 2026 for Landlords
Each guide explains the quarterly update process step by step, tailored to that specific type of income, with practical examples designed to make the system clear and manageable.
Key Points to Remember
- Quarterly updates are digital summaries, not full tax returns
- Sole trader and landlord activities are reported separately
- Each trade has its own quarterly update
- The Final Declaration confirms your overall tax position
Understanding how quarterly updates work before April 2026 will make the transition to Making Tax Digital far smoother.
If you want structured, plain-English guidance designed for your situation, choose the guide that applies to you.
Clarity builds confidence. Structure creates control.
