‘Its not just Quarterly Returns’
MTD Income Tax: It’s Not Just Quarterly Returns – Here’s the Full Picture
If you are a landlord or self employed, you might think it’s “just” about sending four quarterly updates instead of one big tax return. That’s a common misconception – and it’s only half the story.
MTD completely replaces the old Self Assessment tax return process for everyone who has to join. There will be no more traditional Self Assessment return for those under MTD. Instead, you’ll use approved software to send:
Four quarterly updates during the year
One End of Year Declaration (also called the Final Declaration) after the tax year ends
On the End of Year Declaration you’ll also include your other (non-MTD) income such as employment income; dividends and savings income.
Everything happens digitally, through HMRC-recognised software. No paper forms, no separate SA100, no manual “tax return” filing in the old sense. No matter what, you need to have in place MTD compliant software (or your adviser does).
What Actually Happens Under MTD for Income Tax?
Digital Records You must keep your income and expenses in compatible software (QuickBooks, Xero, FreeAgent, Sage, GoSimpleTax, etc.).
Quarterly Updates Every 3 months you (or your software/agent) send a summary of totals for income and expense categories to HMRC. Deadlines (tax-year quarters):
6 Apr – 5 Jul → due 7 August
6 Jul – 5 Oct → due 7 November
6 Oct – 5 Jan → due 7 February
6 Jan – 5 Apr → due 7 May
You can also elect calendar quarters if you prefer.
End of Year Declaration (Final Declaration) After 5 April, once all four quarterly updates are in, you review everything in your software, add any final adjustments, reliefs, personal income, etc., and submit the End of Year Declaration. This is the step that officially finalises your tax position for the year. Deadline: 31 January following the end of the tax year (exactly the same as the old Self Assessment deadline). For the first MTD year (2026/27), the End of Year Declaration is due 31 January 2028.
HMRC uses the data from your quarterly updates + any extra information you add at year-end to calculate your tax. You just confirm you agree with it.
So… No More Self Assessment?
Correct – for those mandated into MTD.
If your combined self-employment + property income was over £50,000 (2024/25 tax year), you join from 6 April 2026.
Over £30,000 → from April 2027
Over £20,000 → from April 2028
Once you’re in MTD, you no longer file a traditional Self Assessment return. The End of Year Declaration via your MTD software is your tax return.
If you’re below the thresholds or exempt, you continue with the old Self Assessment system for now.
Why This Matters for Landlords & Sole Traders
No more dumping a shoebox (or 12 months of bank statements) on your accountant in January.
Your numbers are already in the system throughout the year – fewer surprises, fewer amendments.
You still get the same 31 January payment deadline.
Penalties WILL apply for late quarterly updates and late End of Year Declarations, although there is a year’s reprieve on this.
What You Should Do Now (Feb 2026)
Check if you’ll be mandated in 2026 – look at your 2024/25 total qualifying income.
Choose MTD-compatible software or choose a professional (like us) to deal with it for you. Get in touch or email us at hello@uklandlordtaxhub.com.
UK Landlord Tax Hub – making tax less painful for landlords since… well, since before MTD came along!