MTD for IT Quarterly Updates and Final Declarations Explained

Under Making Tax Digital for Income Tax (MTD for IT), landlords will be required to submit more tax information more frequently than ever before. Instead of filing an annual Self Assessment, landlords earning over £50,000 (from April 2026) will need to submit quarterly updates and final submissions to HMRC through MTD-compatible software.

This article breaks down what quarterly updates involve, the role of the final submission and the key dates—so you can avoid penalties.

Quarterly Updates: What Landlords Need to Know

Once enrolled in MTD for IT, landlords must submit four quarterly updates per tax year. These reports summarise their income and expenses for each period.

Quarterly Update Deadlines

• 1st Quarter: April 6 – July 5 (Due by August 5)
• 2nd Quarter: July 6 – October 5 (Due by November 5)
• 3rd Quarter: October 6 – January 5 (Due by February 5)
• 4th Quarter: January 6 – April 5 (Due by May 5)

What You Need to Report in Each Update

Each submission includes a summary of income and expenses related to rental properties. You don’t need to make adjustments for tax reliefs or allowances at this stage—just report what you’ve earned and spent.

Tip: Using MTD-recognised software like Landlord Studio makes it easy to record transactions in real-time, so your quarterly updates are automatically generated and submitted.

The Final Declaration: Replacing Self Assessment

Once all income sources are accounted for, landlords must submit a Final Declaration to confirm their overall tax position. This replaces the traditional Self Assessment tax return.

What the Final Declaration Includes:

• Rental income and expenses
• Other taxable income (e.g., employment, dividends, pensions)
• Adjustments and tax relief claims
• Confirmation of total tax owed

 Final Declaration Deadline: January 31 (same as the old Self Assessment deadline).

Tip: Your tax liability is not calculated with each quarterly update—only at the Final Declaration stage. However, with more accurate and up to date financial records, many software will be able to provide tax estimates, helping set expectations and manage your tax obligations.

How to Meet MTD Requirements with Quarterly Updates

To avoid penalties and late fees, landlords should:

• Use MTD-recognised software to record income and expenses in real time.
• Submit quarterly updates on time to avoid missing deadlines.
• Review and adjust finances each quarter to ensure accuracy.
• Complete the Final Declaration by January 31 to confirm total tax owed.

Remember: Late submissions will result in HMRC’s new points-based penalty system—so staying organised is crucial!

Final Thoughts

MTD for IT introduces a more structured and frequent tax reporting system for landlords. While quarterly updates might seem like extra work, they actually help landlords stay on top of their finances year-round—reducing tax-time stress.

In the next article, we’ll cover how to sign up for MTD for IT and what you need to register.