MTD for ITSA support for accountants, one quarter at a time

On 7 August, 7 November, 7 February and 7 May. Each update covers the tax year to date, ending 5 July, 5 October, 5 January and 5 April for standard periods, or the calendar quarter ends if the client has elected for them. The tax return for the year is still due by 31 January after the tax year ends.

Sole traders and landlords whose qualifying income was over £30,000 on their 2025 to 2026 self assessment return. Qualifying income is gross self-employment and property income added together, before expenses. The threshold then falls to £20,000 from 6 April 2028, tested on the 2026 to 2027 return.

We do not submit. We chase records, categorise them in your MTD software and flag queries, then hand the update to your team. Your practice reviews it and submits under its own agent credentials, so HMRC sees your firm as the agent and your reviewer approves every figure.

Each client in scope moves from one annual deadline to five: four quarterly updates and the tax return. Most of the added hours go on chasing records and categorising transactions four times a year. That is the part we take on, which leaves your qualified staff with the review.

HMRC has said it will not apply penalty points for late quarterly updates in the 2026 to 2027 tax year. From then on, each late update earns a penalty point, and a £200 penalty is charged when a client reaches 4 points. If a penalty is charged, our appeals service can draft the appeal.

Quarterly updates are cumulative, so each one covers the tax year from 6 April to the end of the latest period. A correction made in the records is carried into the next update, and HMRC's guidance says earlier updates do not need to be resent. We note any correction on the client's query list so your reviewer sees it.