Making Tax Digital (MTD) is an HMRC initiative that changes how self employed individuals, sole traders, businesses and landlords keep records and report income tax. Under MTD for Income Tax, digital records must be kept and quarterly updates submitted to HMRC along with an annual submission, rather than relying on a single annual return.

Yes. You can continue using spreadsheets. TaxCalc’s software enables you to submit quarterly updates directly from spreadsheet data, acting as a bridging solution for Making Tax Digital.

TaxCalc MTD Quarterly Filer is a HMRC-recognised spreadsheet bridging solution that allows users to submit quarterly updates to HMRC under the Making Tax Digital (MTD) for Income Tax rules.

Signing up for MTD for Income Tax is via HMRC’s website. Once registered, you will be able to authorise TaxCalc to connect digitally to your HMRC account.

No. Only the summary totals extracted form the spreadsheet. No transactional data is sent to HMRC.

The software returns the HMRC generated tax calculation based on the data entered and this may change with each subsequent update. The final tax position will be calculated by TaxCalc within Tax Return Production prior to submission to HMRC.

Yes. Each quarter should include all figures from the start of the tax year to the end of the update period.

Yes, but you must do so before filing your first quarterly update. HMRC will not accept any change to the basis once the first update has been submitted.

Yes, although HMRC's expectation is that minor discrepancies will be corrected in the next update or final tax submission.

No. This is MTD compliance software designed to submit quarterly updates to HMRC. It works alongside spreadsheets or bookkeeping tools, so you do not need to move to a new system.

TaxCalc MTD Quarterly Filer is a HMRC-recognised spreadsheet bridging solution that allows users to submit quarterly updates to HMRC under the Making Tax Digital (MTD) for Income Tax rules.

Who needs to use MTD Quarterly Filer?

Individuals with self-employment or property income above HMRC’s MTD threshold will need to submit quarterly updates using compatible software. This currently applies from April 2026 for those above £50,000, with lower thresholds introduced in later phases.

Yes. TaxCalc supports multiple sources of income, including multiple businesses or property portfolios including UK and overseas property. It allows you to file updates for each separately.

No. Only the summary totals extracted from the spreadsheet are submitted to HMRC. Individual transactions are not sent.
The spreadsheet itself is your digital bookkeeping record, so you should keep it as part of your business records in line with HMRC record‑keeping requirements.