Digital records.
Every business income and expense kept in MTD-compatible software. Not a shoebox. Not a spreadsheet on its own.
Making Tax Digital · explained plainly
The HMRC notification, without the panic.
HMRC’s changing how many self-employed people report income. Quarterly updates need digital records and compatible software. Here’s what it actually means for you, and how Kwilo helps keep the records reviewable.
Compatible software workflowsIncome Tax MTDUK-built
GOVHMRC online
Your Q2 update is due in 14 days. Review the records before submission.
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Home › Self Assessment › Making Tax Digital
Your Income Tax: quarterly updates
UPDATE DUE — 14 DAYSQ2 update · Jul – Sep 2026Deadline 7 November 2026
DUEQ1 update · Apr – Jun 2026Submitted 4 August 2026
FILEDKwiloRecords to check.
Income and expenses are grouped. Review the missing items before anything goes.
What is MTD, really?
MTD stands for Making Tax Digital. It’s HMRC’s long-running project to drag tax filing into the 21st century — paper returns out, software-based digital records in.
If you’re self-employed or a landlord earning above the threshold, MTD for Income Tax (often shortened to MTD for ITSA) means keeping digital records, sending four quarterly updates, and completing the year-end position through recognised software or an authorised agent setup.
“The job is to keep records digitally, review the figures, and submit through the right software route.”
That last bit’s the bit nobody quite explains in the letters. It’s not extra paperwork — it’s a different rhythm. Done right (read: with the right tool), it’s actually less work than scrambling to find a year’s worth of receipts every January.
The roll-out
When does it hit you?
HMRC’s phasing MTD for ITSA in by income band. Find your number and the date you need to be ready by.
April 2026
> £50k
The first wave.
If your self-employment or rental income for 2024–25 was over £50,000, you're in. Your first quarterly update is due 7 August 2026.
Live from April 2026April 2027
> £30k
The second wave.
Income over £30,000 for 2025–26? You're in from April 2027. A year to get your books in order.
Next upApril 2028
> £20k
The third wave.
Confirmed in the 2024 Budget. Qualifying income over £20,000 comes into scope from April 2028.
ConfirmedTBC
≤ £20k
Under the threshold.
Not currently required to join by income threshold. Keeping clear digital records now can reduce later preparation, but check the supported workflow you need before relying on any software.
OptionalWhat HMRC actually asks of you.
Four things, in practice. The software should make them visible rather than hiding them behind accounting language.
Quarterly updates.
Four times a year, send a summary of your income & expenses to HMRC. Due roughly a month after each quarter ends.
Tax return.
Once a year, confirm the figures, add anything else that belongs on your tax return, and submit it by the usual deadline.
Recognised software.
Updates must go through recognised software or an authorised agent setup. A spreadsheet on its own may need bridging software.
Quarter end is a Tuesday afternoon.
Not a panic. Not a weekend lost to receipts. Here’s how I keep the moving parts visible before a supported submission workflow needs attention.
As you work
Digital records, kept as you work.
Income, expense and evidence records stay close to the Customer, Job or Invoice they came from, so review starts from context.
Quarter end
Quarterly review, not a scramble.
The quarter-end view should show what is ready, what needs a category, and what still needs evidence before submission.
Before submission
Review before submission.
When a supported HMRC workflow is ready, you should be able to see what is being submitted before anything goes.
Missing items
Missing records visible.
Receipts, categories and figures that need attention are easier to spot before the deadline.
Your route
Use the setup that suits your business.
Connect Xero, QuickBooks or FreeAgent, invite your own accountant or bookkeeper as an Advisor, or complete straightforward supported workflows yourself.
You should see the record first.
No separate paperwork world to rebuild. You quote, work, invoice and get paid — and the records needed for supported MTD workflows stay closer to the work. Your job at quarter end is to review what is ready and check what is missing.
Built around Income Tax MTD workflows.
Kwilo supports Income Tax MTD workflows for sole traders with one supported self-employment source. The app shows what is going, what still needs review, and where professional advice may be needed.
Late tax return? Points-based fine.
Quarterly updates do not attract penalty points in 2026–27. From April 2027, HMRC’s points-based system can lead to a £200 penalty after four missed quarterly deadlines. Late tax returns can attract points from April 2026.
The questions people ask me first.
I've had an accountant for years. Does this change anything?
Not unless you want it to. Invite the accountant or bookkeeper you already use into Kwilo as an Advisor, or connect Xero, QuickBooks or FreeAgent and continue working there. Kwilo gives them a clearer record to review; it does not replace their advice.
What counts as “income” for the threshold?
Your gross self-employment turnover plus any rental income — not profit. So if you turned over £52,000 with £8,000 of expenses, you're in the over-£50k wave even though your profit was £44,000. HMRC look at the turnover number on your last filed Self Assessment to decide.
Do I need to file every three months even if nothing happened?
Yes. Even a quiet quarter can still need an update. Kwilo can keep the workflow visible, but you still need to review what is being sent and make sure the submission is right.
What about VAT MTD — is that the same thing?
No. MTD for VAT and MTD for Income Tax are separate regimes with separate rules. Do not assume support for one means support for the other — check the workflow you actually need.
What if I'm below the threshold?
You are not currently required to join based on the published income thresholds. You can still keep digital records now, but future eligibility, dates and software support can change, so check the workflow that applies when your wave approaches.
Does Kwilo support landlord or property-income MTD?
Not in the current supported workflow. Kwilo's Income Tax MTD support is limited to sole traders with one supported self-employment source; landlords and people with property income should use an appropriate recognised-software or authorised-agent route.
Can HMRC see my bank account?
No. They see the summary figures you submit each quarter — income, expenses, totals. Not transactions, not bank balances. Your records stay with me; only the summary travels.
Not tax adviceThis page explains MTD in plain English, based on HMRC guidance as of 2026. Rules and dates can change — always check gov.uk/making-tax-digital or speak to your accountant for advice on your specific situation.
Start the records now.
Make quarter-end calmer.
The people calmest about MTD are the ones who started before they had to. The button opens the app sign-in page for access.
Income Tax MTD · No card needed · Contact route before wider rollout