QuickBooks for Making Tax Digital: How to Get MTD-Ready for Income Tax (2026)
- Making Tax Digital (MTD) for Income Tax became mandatory from April 2026 for sole traders and landlords with £50,000+ combined income (dropping to £30k in April 2027, £20k in April 2028).
- You must keep digital records and send HMRC a quarterly update through MTD-compatible software — you can no longer just file one annual Self Assessment by hand.
- QuickBooks is fully HMRC-recognised MTD software — it stores your digital records and submits your quarterly updates directly to HMRC.
- The first quarterly deadline is 7 August 2026, then 7 November, 7 February and 7 May.
- Miss a deadline and you get a penalty point; 4 points = a £200 fine.
- Setup takes minutes with an accountant — connect QuickBooks to HMRC, categorise your income and expenses, and submit.
For years, being self-employed or a landlord meant one tax job a year: file your Self Assessment by 31 January and you're done. That era is over. Making Tax Digital for Income Tax is now live, and it replaces that single annual return with digital record-keeping and four updates a year. The good news: the right software makes it almost invisible. Here's exactly what's changed, whether it affects you, and how QuickBooks handles the whole thing.
What is Making Tax Digital for Income Tax?
Making Tax Digital (MTD) for Income Tax is HMRC's new way of reporting self-employment and property income. Instead of one annual Self Assessment return, it requires three things:
- Digital records — you must keep your income and expenses in HMRC-recognised software, not a shoebox or a spreadsheet you type up in January.
- Quarterly updates — every three months you send HMRC a summary of your income and expenses, straight from that software.
- A final declaration — after the tax year ends, you confirm the figures and any adjustments (replacing the old annual return).
The aim is fewer errors and no more year-end scramble. The catch is that "keep digital records and file four times a year" only works smoothly if your bookkeeping software does the heavy lifting — which is where QuickBooks comes in.
Do the new rules apply to you?
MTD for Income Tax is being phased in by income level. You're brought into the rules based on your gross income from self-employment and property combined (not your profit):
| From | You must use MTD if your income is over |
|---|---|
| April 2026 ← now | £50,000 |
| April 2027 | £30,000 |
| April 2028 | £20,000 |
So from April 2026, if your combined self-employment and rental income is above £50,000, you're in the system now. If you're between £30,000 and £50,000, your turn comes in April 2027 — but getting set up early makes it painless. Below £20,000 (for now), you can carry on with the normal Self Assessment.
Is QuickBooks MTD-compliant?
Yes. QuickBooks is on HMRC's list of recognised software for Making Tax Digital for Income Tax. That means it can legally keep your digital records and submit your quarterly updates and final declaration directly to HMRC — no separate spreadsheets, no "bridging" workarounds, no copying figures by hand.
💡 Worth knowing: QuickBooks already handled MTD for VAT, so its MTD engine is well established. For Income Tax it adds the quarterly-update and final-declaration steps on top of the bookkeeping you'd do anyway.
How QuickBooks makes MTD simple
The reason accountants recommend software like QuickBooks for MTD is that it turns "four filings a year" into a few clicks:
- Bank feeds pull your transactions in automatically, so your records stay up to date without manual typing.
- Categorisation sorts income and expenses into the right boxes as you go — the digital record HMRC wants.
- Quarterly updates are generated from those records and submitted to HMRC in a few clicks.
- The final declaration pulls the year together at the end, so there's no separate January panic.
- A running tax estimate shows what you're likely to owe, so nothing is a surprise.
The 2026/27 quarterly deadlines
Quarterly updates follow the tax year. For 2026/27, the standard deadlines are:
| Quarter | Period covered | Update due |
|---|---|---|
| Q1 ← next | 6 Apr – 5 Jul 2026 | 7 August 2026 |
| Q2 | 6 Jul – 5 Oct 2026 | 7 November 2026 |
| Q3 | 6 Oct 2026 – 5 Jan 2027 | 7 February 2027 |
| Q4 | 6 Jan – 5 Apr 2027 | 7 May 2027 |
Your final declaration for 2026/27 is then due by 31 January 2028, alongside payment of any tax owed. QuickBooks flags each deadline so you're never caught out.
Setting up QuickBooks for MTD: the short version
- Choose a QuickBooks plan that includes MTD for Income Tax.
- Connect QuickBooks to HMRC — you authorise it once, using your Government Gateway login.
- Link your business bank account so transactions flow in automatically.
- Set up your income and expense categories (an accountant does this so your figures map correctly to HMRC's boxes).
- Keep records updated through the quarter, then review and submit each quarterly update.
⚠️ Don't leave the connection to the last day. Authorising QuickBooks with HMRC and getting your categories right takes a little setup. Do it well before 7 August so your first update is a click, not a crisis.
What happens if you miss a deadline?
MTD uses a points-based penalty system. Every time you miss a quarterly update deadline, you get one penalty point. When you reach four points, HMRC charges a £200 fine — and further defaults after that trigger more. Late payment of the tax itself carries separate interest and penalties.
The points don't sit forever, but the simplest way to avoid them entirely is to let software track the deadlines and submit on time — which is exactly what QuickBooks (and an accountant keeping an eye on it) is for.
Frequently asked questions
Is QuickBooks compatible with Making Tax Digital?
Yes. QuickBooks is HMRC-recognised software for both MTD for VAT and MTD for Income Tax, so it can keep your digital records and submit your quarterly updates and final declaration directly to HMRC.
When is the first MTD for Income Tax deadline?
The first quarterly update for 2026/27 (covering 6 April – 5 July 2026) is due by 7 August 2026. The following deadlines are 7 November 2026, 7 February 2027 and 7 May 2027.
Do landlords have to use MTD and QuickBooks?
Landlords with combined property and self-employment income over the threshold (£50,000 from April 2026) must follow MTD and use compatible software. QuickBooks supports property income, which is why many landlords use it to stay compliant.
Can I still use a spreadsheet instead of QuickBooks?
Only if it's linked to HMRC through "bridging" software, and it's clunky. Recognised software like QuickBooks keeps the digital records and files for you in one place, which is far simpler and less error-prone.
What if my income is under £50,000?
You're not mandated yet — £30,000+ joins in April 2027 and £20,000+ in April 2028. But setting up QuickBooks early means you're ready before your deadline instead of rushing.
FincSol Accountancy sets up QuickBooks for Making Tax Digital, connects it to HMRC, and handles your quarterly updates for you — so you stay compliant and never miss a deadline. Sole traders, landlords and e-commerce sellers welcome. Dedicated personal accountant, no long-term contract.
Message us on WhatsApp →Related reading: Sage vs QuickBooks: which is better? and your second payment on account explained. Official HMRC guidance is at gov.uk.
