📣 MTD Quarterly Returns: What You Need to Know (Next 5 Years)

At Arendelle Ltd, we know Making Tax Digital (MTD) for Income Tax can feel a bit overwhelming, especially with quarterly reporting coming your way. Don’t worry — we’re here to make it simple.

🧐 How Do You Know if MTD Affects You?

Eligibility is based on your income in previous tax years. HMRC checks your most recent completed tax year before the MTD start date to see if you need to submit quarterly updates.

Here’s a simple breakdown:

Tax Year	Reference Year for Eligibility	Income Threshold	Who Needs to Submit
2026/27 (from 6 Apr 2026)	2024/25	£50,000+	Anyone with self-employed or property income over £50,000
2027/28 (from 6 Apr 2027)	2025/26	£30,000+	Anyone with self-employed or property income over £30,000
2028/29 (from 6 Apr 2028)	2026/27	£20,000+	Anyone with self-employed or property income over £20,000
2029/30 onwards	To be confirmed	TBD	Thresholds still under review

✅ “Qualifying income” means gross income before expenses.

⚡ If your income in the reference year was below the threshold, you won’t need to submit quarterly updates that year.

⏰ Quarterly Update Periods & Deadlines

Once you’re in MTD, each tax year is split into four quarterly updates, plus a final annual declaration:

Quarter	Period Covered	Deadline
Q1	6 Apr – 5 Jul	7 Aug
Q2	6 Apr – 5 Oct	7 Nov
Q3	6 Apr – 5 Jan	7 Feb
Q4	6 Apr – 5 Apr	7 May

The final declaration is then due 31 Jan after the tax year ends.

Quick tip: Some software lets you submit in calendar quarters if that’s easier — just make sure you meet the official deadlines.

💻 Why We Recommend FreeAgent

At Arendelle Ltd, we love FreeAgent for MTD compliance:

• Fully MTD-compliant and HMRC-approved

• Automates quarterly updates and digital record-keeping

• Integrates bank feeds, invoices, expenses, and profit tracking in one place

• Super easy to use, especially for sole traders

It saves time, stress, and mistakes — priceless when submissions are quarterly instead of yearly!

🎓 DIY or Leave It to Us

Some people enjoy doing their own bookkeeping, others want to hand it off. We’ve got both options:

DIY Option

Our self-paced course:

“DIY Bookkeeping for Sole Traders using FreeAgent” Step-by-step guides for keeping your books, submitting quarterly updates, and staying compliant — perfect if you want full control.

Full Service Option

• Full bookkeeping service

• Full accounting service

• Monthly, quarterly & yearly checks if you do your own bookkeeping — we review before you submit, or we can submit for you

  
  

⚡ Why It’s Smart to Book Now

As MTD rolls out, good bookkeepers are going to be in short supply. Securing our services now means you’ll avoid the mad dash and stress later.

At Arendelle Ltd, we make MTD simple, whether you want to DIY with FreeAgent or leave it to us. The earlier you get sorted, the easier it will be!

Contact us at info@arendelle.co.uk if you want to more about the any of the above options.

Heather Watson

Founding Director

Arendelle Ltd