HMRC has confirmed it will be possible to use bridging software to file quarterly returns, although their preference is for taxpayers to file using MTD compatible software. We have bridging software! You can therefore choose to use an all-in-one software product that creates digital records or a bridging software product that connects to existing records kept in spreadsheets or other accounting tools.

Letters have been sent by HMRC informing the nearly 900,000 taxpayers that they must register for MTD. The decision is based on HMRC assessments of earnings in the 2024-25 tax year.

Registration deadline

HMRC wants affected taxpayers to register by 6 April 2026 so they are ready for the new MTD quarterly reporting in good time. But this date is not mandatory. But it is highly recommended that MTD registration is completed in good time before the first quarterly reporting deadline on Friday, 7 August.

You need to make sure you have the necessary MTD software from a commercial provider or correct bridging software at least a few weeks before the first quarterly filing deadline.

When is the first quarterly reporting deadline?

Friday, 7 August 2026, is the first deadline for filing the Q1 quarterly update for qualifying income and expenses for the 2026-27 tax year. The income has to be split between individual earnings from each trade and a separate quarterly report for property income.

It is very important to note that MTD for Income Tax quarterly reporting to HMRC is in addition to, and does not replace existing self-assessment tax returns, which will still have to be completed in the normal way by 31 January 2027 for 2025-26 earnings.