Quarterly MTD Updates – FAQs by BES Accountancy
- bes Accountancy Services
- Jul 2
- 4 min read
Updated: Jul 18
With HMRC’s Making Tax Digital initiative entering its next major phase, many business owners are asking the same thing: what exactly are the new rules, and how can I comply with them efficiently? At BES Accountancy, we’ve created this essential guide to answer the most frequently asked questions about MTD quarterly update FAQs—from who needs to comply, to how to set up the right software.
Whether you’re a self-employed professional, a landlord, or run a growing SME, this article is designed to give you clarity and practical solutions to manage your obligations under MTD for self-employed over 50k.
Need help getting ready for quarterly tax updates?
Call our director Besnik today: 07816264205
What Are Quarterly MTD Updates?
Quarterly MTD updates refer to the requirement for eligible businesses and landlords to submit their income and expense data every three months to HMRC through MTD-compatible software. This change is part of the broader MTD for Income Tax Self Assessment (ITSA) rollout. The goal is to reduce tax errors and create a more streamlined digital process for both taxpayers and HMRC.
If you are self-employed and earn more than £50,000 annually, you will be required to comply with MTD for self-employed over 50k by April 2026. The requirement extends to those earning over £30,000 from April 2027.
Who Needs to File MTD Quarterly Updates?
The MTD rules apply to:
Self-employed individuals with income above £50,000 (from 2026)
Landlords earning over £50,000 annually
Sole traders with combined property and business income over the threshold
Those not currently exempt from MTD due to age, disability, or remote location
This means even if you’re already submitting VAT returns under MTD, you now need to prepare for income tax filing as a separate quarterly obligation.
What Happens After Each Quarterly Update?
Each update summarises your income and expenses for the period. Unlike traditional self-assessment, you will not calculate your final tax liability at this stage. Instead, these quarterly reports act as running updates to HMRC, giving them—and you—a clearer picture of your finances in real time.
At the end of the tax year, you’ll submit a Final Declaration and an End of Period Statement (EOPS) confirming your full income and making any necessary adjustments.
Want to dive deeper into accounting for businesses?
Read our related blog, where we provide a full guide to submitting your File Your 2024/25 Tax Return Early.
How Do I Get Started with MTD Quarterly Updates?
You will need:
MTD-compliant software that connects directly with HMRC’s systems
Digital record-keeping practices to replace paper or manual spreadsheets
A reliable system for submitting quarterly updates on time
At BES Accountancy, we work with Xero and QuickBooks—two of the leading MTD software for small businesses—and offer setup, integration, and training.
Why BES Accountancy Is Your Trusted MTD Partner
Founded in 2020, BES Accountancy is a leading firm based in London, serving self-employed professionals, landlords, and SMEs across the UK. Led by Besnik Vata, a certified bookkeeper with an AAT license, our five-person team offers bespoke support tailored to each client’s needs.
What We Provide:
End-to-end support for MTD for income tax 2025
Bookkeeping, payroll, VAT, and financial accounting
MTD software integration and training
Full compliance support for MTD quarterly update FAQs
We believe in Availability, Efficiency, and Trust, helping clients navigate tax changes with confidence and clarity.
Let bes accountancy services save you time and money by handling your accounting.
The Benefits of Going Digital with Quarterly Updates
For many small business owners, the switch to MTD is more than just compliance—it’s an opportunity to upgrade financial visibility. By keeping real-time digital records and submitting quarterly, you benefit from:
Improved cash flow tracking
Fewer year-end errors or surprises
Faster and more accurate decision-making
Stronger record-keeping for funding or credit applications
A better overall grasp of your tax obligations
Let BES Accountancy guide your quarterly MTD transition from start to finish.
Stay Connected with BES
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Final Thoughts
As MTD for self-employed over 50k approaches, the time to act is now. The switch to quarterly updates may seem daunting, but with the right partner, it becomes an opportunity for growth, efficiency, and better financial control.
BES Accountancy is here to make your MTD journey stress-free, compliant, and tailored to your unique business needs.
Book your free consultation now -
Call 07816264205 or visit us at our London office for a free consultation.
FAQ – MTD Quarterly Update FAQs
1. Do I still need to file a Self Assessment if I submit quarterly MTD updates?
Yes. You’ll still submit a Final Declaration annually alongside your End of Period Statement. MTD does not replace this but supplements it with quarterly submissions.
2. Is the quarterly update based on actual or estimated figures?
Quarterly updates should reflect your actual income and expenses for that period, based on your digital records. Estimations are discouraged and may lead to penalties.
3. Can I continue using spreadsheets?
Only if they are integrated with bridging software approved by HMRC. However, using full MTD-compliant platforms like Xero or QuickBooks is strongly recommended for simplicity.
4. What happens if I miss a quarterly update?
You may incur penalties under HMRC’s points-based system for late submissions. BES helps you stay on track with proactive reminders and full submission services.
5. How does BES Accountancy help with MTD?
We provide setup, training, ongoing support, and full management of your quarterly tax submissions using the latest cloud software. Whether you’re new to digital accounting or just need a second pair of eyes, we’re here to help.
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