Glossary · UK
What is Quarterly Update (MTD ITSA)?
One of four mandatory digital submissions per year of income and expenditure totals that self-employed individuals and landlords must make under Making Tax Digital for Income Tax Self Assessment.
Full Definition
Making Tax Digital for Income Tax Self Assessment (MTD ITSA) requires eligible sole traders and landlords to keep digital records and send quarterly updates of income and expenditure to HMRC using MTD-compatible software, replacing the traditional annual Self Assessment tax return. MTD ITSA is being phased in: from April 2026 it is mandatory for those with total gross income from self-employment and/or property exceeding £50,000; from April 2027, the threshold drops to £30,000. The £20,000 threshold for a potential third wave has not yet been confirmed. Each quarterly update covers one of four standard periods: Q1 (6 April to 5 July), Q2 (6 July to 5 October), Q3 (6 October to 5 January) and Q4 (6 January to 5 April), with submissions due by the 7th of the month following each period end. Quarterly updates contain cumulative totals of business income and allowable expenses for each source (each self-employment business and each rental property is reported separately). After the fourth quarterly update, the individual must submit an End of Period Statement (EOPS) and a Final Declaration (replacing the old SA return) to confirm figures, claim reliefs and pay the final tax due by 31 January following the tax year. Taxpayers may choose to make calendar-quarter updates instead of the standard period, an option introduced following the review of MTD ITSA policy.