29/06/2026
❓Making Tax Digital FAQs ❓
As we approach the end of the first MTD quarter, we've answered some of the questions being asked most often:
🔷 Do I have to pay tax every quarter? 🔷
No.
Quarterly updates are simply a way of reporting your business income and expenses to HMRC.
Your tax payment dates haven't changed, they’re still 31 January & 31 July.
🔷 Can I choose to stay out of MTD? 🔷
No.
You must participate in MTD from 06 April 2026 if you are a sole trader and/or landlord and your qualifying income in 2024/25 was over £50,000.
Qualifying income is your total turnover (before expenses) from self-employment and property combined.
🔷 What if I didn't have any income this quarter? 🔷
You still need to submit a quarterly update, even if there's nothing to report.
🔷 What do I need to send to M Squared? 🔷
For most MTD clients, we'll need:
✅ Your records to be up to date in Xero (or your MTD-compatible software)
✅ Details of any business income or expenses not recorded
✅ Answers to any bookkeeping queries we've sent you
Sending everything on time helps us submit your quarterly update accurately by the 07 August deadline.
