Getting ready for MTD 2026/27

Welcome to untied for 2026/27. While you may be coming into Making Tax Digital for the first time, you've chosen well. Nobody offers more MTD capability than untied and we've been on the journey for the last ten years - first recognised for MTD by HMRC in 2020 and with the first fully mobile MTD product. We're here to help.

This article covers the key things to know:

Get set up

Sign up for MTD (email us if you want us to do this for you)
Enable MTD in untied
Link untied to your HMRC account
See that your obligations appear

Do you have income over £90k from a single source, or foreign property income?

You will need to set up advanced tags (this is best done ONCE you're linked to MTD)

Use untied to set your accounting settings - some of this needs to be done at the start of the year

When you see your businesses in untied in the MTD section, there will be settings for each. By default these are set as cash basis, and a year end of 5 April.

Cash basis vs accrual basis

Most people are on cash basis (which means you "follow the money" - income when you get money in, expense when you pay money out) and this is the HMRC default now
Some people will be on the accrual basis (which means you account when the underlying activity or transaction actually happens ... eg you sell something today and get paid next week ... you treat the income as happening on the day you sold it)
In general if you buy expensive "capital" items (there may be exceptions for cars and items that won't decrease in value over time):
- On the cash basis, you claim it all as an expense in one go
- On the accrual basis you can claim it all in one go or spread it over a number of years
You can choose to account on the accrual basis - in untied you will be responsible for making sure the right entries are made from the default cash basis accounting

Calendar election - needs to be done before you file an in-year quarterly update

You can make a calendar election to change your accounting year end to 31 March instead of 5 April
This needs to be made before your first quarterly update filing in a year
Before filing the end of year tax return, talk to us about the treatment of the days between 1-5 April for each year

Know your deadlines

In-year deadlines for quarterly updates only apply to self-employment and property income. Other income is reported at the end of the year.

Standard quarters

These are:

Q1 6 April – 5 July: 7 August 2026
Q2 6 July – 5 October: 7 November 2026
Q3 6 October – 5 January: 7 February 2027
Q4 6 January – 5 April: 7 May 2027 (note that you can still submit further updates after this date, and the updates will go into your figures for your final tax return)

Calendar quarters

These are:

Q1 1 April – 30 June: 7 August 2026
Q2 1 July – 30 September: 7 November 2026
Q3 1 October – 31 December: 7 February 2027
Q4 1 January – 31 March: 7 May 2027 (note that you can still submit further updates after this date, and the updates will go into your figures for your final tax return)

Remember a quarterly update is not at the same level as a tax return. It's a sign that you're on your way with your recordkeeping. And tour individual transactions don't go to HMRC - just your totals.

Make the most of untied

Linking bank accounts is not required, but will make your life easier
Set rules
If you're on top of your bookkeeping and especially if you're using rules, you can toggle autosubmit to file automatically after the end of each quarter
If you have an accountant or bookkeeper get in touch and we can give them access

Mythbuster

Myth: “I need to break down my income and expenses by quarter”

Fact: You don’t need to split your records into quarterly buckets.

Quarterly updates are sent to HMRC as year to date totals. You just need to submit an update after the end of a quarter for the obligation to be met.

Myth: “I’ll need to keep receipts digitally”

Fact: MTD does not require you to scan or store digital copies of receipts or invoices.

You must keep digital records of your income and expenses. This means the date, amount and description or category of the transaction.

Supporting evidence such as receipts and invoices can still be stored in the way that works for you. Many choose to snap and store receipts digitally because it’s convenient, not because HMRC mandates it.

Myth: “HMRC will get all my records”

Fact: HMRC only receives the summary information you submit, not your full records.

Quarterly updates and end‑of‑period statements contain totals, not every receipt or transaction detail. Your underlying records stay with you (or your software), not with HMRC.

Myth: “I’ll need to pay tax quarterly”

Fact: MTD does not change when you pay your tax.

Quarterly updates are about reporting, not paying. Tax payments follow the same timetable as before with the main deadline being 31 January, with the first payment on account due by 31 January and the second by 31 July. And as before payment plans can be agreed with HMRC.

Myth: “I need a separate bank account for MTD”

Fact: MTD doesn’t require you to open a new or separate bank account.

You can continue using your existing account. Some people choose a dedicated business account to stay organised, but it’s a preference, not an HMRC requirement.

Myth: “I need to link my bank accounts to the software”

Fact: MTD does not require you to connect your bank accounts.

You can enter income and expenses manually if you prefer. Bank feeds are optional and can make things easier, but they’re not mandatory for MTD compliance.

Myth: “I can still file my end of year tax return directly with HMRC”

Fact: Under MTD you must use MTD‑compatible software for your submissions at the end of the year as well.

The traditional Self Assessment tax return won’t be used for those within MTD. Instead, you’ll finalise your tax position through recognised software - which is why it's best to use untied as we support all the income sources you're likely to need.