Making Tax Digital, answered

Making Tax Digital for Income Tax (MTD ITSA) is a new way HMRC wants self-employed people and landlords to report their income. Instead of one Self Assessment return once a year, you send HMRC a short summary of your income and expenses every three months, then a final declaration at the end of the year. It all happens through software rather than the old online form.

The idea is to spread the work across the year and cut down on errors. Quarterly Filer handles the software side so you can get on with running your business.

For most people it's compulsory, not optional. If HMRC's rules say your income is above the threshold, you'll need to follow MTD ITSA rather than filing a normal Self Assessment return. There's no separate sign-up to “opt in”: once you're in scope, this becomes the way you report.

If you're not sure whether it applies to you, the next question covers who's affected and when.

MTD ITSA applies to self-employed people and landlords whose combined income from self-employment and property is above HMRC's threshold. It's being brought in gradually, based on how much you earn, so the highest earners join first.

The important date for the first group is April 2026. If your income is below the threshold for now, you may join in a later phase, but it's worth getting ready early so nothing catches you out.

From 6 April 2026, the first group of self-employed people and landlords must keep digital records and send quarterly updates to HMRC. This is the start of your MTD obligations, not a single filing deadline: from that date onward you report every quarter rather than once a year.

The sensible move is to have your software set up and your records in order before April 2026 arrives, so your first quarterly update is straightforward. Quarterly Filer is built to be ready well in advance.

You send four quarterly updates across the tax year, each a simple summary of your income and expenses for that period. After the fourth quarter you complete a final declaration, which confirms your figures for the whole year and works out your tax.

Quarterly updates are summaries, not full tax returns, so they're quick. Quarterly Filer pulls your figures together and submits each one for you.

You keep a digital record of your income and expenses, either by entering them in Quarterly Filer or importing them from a CSV. When a quarter ends, the software adds up your totals and sends the update straight to HMRC through their official Making Tax Digital service.

You review the figures before anything is submitted, so you're always in control. There's nothing to install and no spreadsheets to wrestle with: everything runs in your browser.

Quarterly Filer is built to HMRC's Making Tax Digital for Income Tax specification and connects through HMRC's official Making Tax Digital service, so your quarterly updates and final declaration go to HMRC directly and securely. We are currently completing HMRC's recognition process.

You won't need any separate software or the old online form. We keep our connection up to date as HMRC's requirements change.

Not at all. Quarterly Filer is built for ordinary self-employed people and landlords, not accountants. You enter your income and expenses in plain terms, and the software handles the sums and the submission.

If you already have an accountant, you can carry on working with them: Quarterly Filer fits alongside their support rather than replacing it.

Quarterly Filer costs £49 a year, one payment that covers your whole tax year: your four quarterly updates and the year-end final declaration. If you only need to file once, there's a £18 one-off single submission instead. There are no setup fees, no hidden charges and no long contract to sign.

Your first submission is completely free, so you can see how it works before you pay anything.

It means your very first quarterly update to HMRC costs you nothing. You can set up your account, enter your figures and file that first submission to check everything works for you, without paying.

If you're happy, you continue at £49 a year, or pay £18 for a single one-off submission. If it isn't for you, you're under no obligation to carry on.

Yes. Your information is stored securely and encrypted, and we only use it to prepare and file your tax updates. We never sell your data or share it with anyone who doesn't need it to provide the service.

Our privacy policy sets out exactly what we collect, how we store it and the rights you have over your information. If anything is unclear, ask us.

Yes. There's no minimum term and no cancellation fee. You can stop your £49 annual plan whenever you like, and you won't be charged again after you cancel. The £18 one-off submission is a single charge that doesn't renew, so there's nothing to cancel.

If you leave, you can still request a copy of your records. We think a service should keep you because it's useful, not because you're locked in.

HMRC operates a points-based penalty system for late MTD submissions: you pick up a point each time an update is late, and a fine only applies once you reach a set number of points. So one slip won't automatically cost you money, but it's best to stay on top of them.

Quarterly Filer reminds you before each deadline and shows you clearly what's due, so missing one is far less likely in the first place.

You might, and the two work well together. Your accountant can still handle your final declaration and give you advice, whilst Quarterly Filer takes care of the quarterly updates and keeps your records digital and HMRC-ready.

Some people prefer to hand everything to their accountant, and others like doing the quarterly updates themselves to save on fees. Quarterly Filer suits both approaches.

Sign up on our website, connect your account to HMRC in a few clicks and enter your income and expenses. When your first quarter is ready, file that submission free of charge.

The whole setup takes minutes, not hours. If you get stuck at any point, contact us by email and we'll walk you through it.