GovernX · Free guide · Updated 21 October 2026

MTD for Income Tax: the categories HMRC wants in each quarterly update

For UK sole traders and landlords. Every category name below is copied from HMRC's own documents, with links, so you can check them.

In short

Since 6 April 2026, Making Tax Digital for Income Tax applies to sole traders and landlords with qualifying income over £50,000. GOV.UK says the threshold falls to £30,000 from April 2027 and £20,000 from April 2028.
You keep digital records and send four quarterly updates, then a final declaration by 31 January.
Each update is a set of category totals, not individual receipts, and covers the tax year so far.
Spreadsheets are allowed if bridging software sends the update. The figures must reach that software by a digital link, never retyped or copy-pasted.

2026-27 update periods and deadlines

Update	Standard period	Calendar period	Deadline
1	6 April to 5 July	1 April to 30 June	7 August 2026
2	6 April to 5 October	1 April to 30 September	7 November 2026
3	6 April to 5 January	1 April to 31 December	7 February 2027
4	6 April to 5 April	1 April to 31 March	7 May 2027

Source: GOV.UK: send quarterly updates. Calendar periods apply only if you have chosen them.

Self-employment categories

Income
Turnover
Other business income

Expenses
Cost of goods bought for resale or goods used
Construction industry — payments to subcontractors
Wages, salaries, and other staff costs
Car, van, and travel expenses
Rent, rates, power, and insurance costs
Repairs and maintenance of property and equipment
Phone, fax, stationery, and other office costs
Advertising
Business entertainment costs
Interest on bank and other loans
Bank, credit card and other financial charges
Accountancy, legal and other professional fees
Other business expenses

Turnover under £90,000: GOV.UK says a sole trader only needs to record whether each transaction is income or an expense.

UK property categories

Income
Total rent
Other income from property
Premiums for the grant of a lease
Reverse premiums and inducements

Expenses
Rent, rates, insurance and ground rents
Property repairs and maintenance
Non-residential property finance costs
Residential property finance costs
Residential finance costs brought forward
Legal, management and other professional fees
Costs of services provided, including wages
Travel expenses
Other allowable property expenses

Residential landlords must use these detailed categories even when turnover is under £90,000. For jointly let property you record only your share, and you may leave its expenses out of quarterly updates as long as you add them before your tax return.

Category source: HMRC: Making Tax Digital for Income Tax quarterly update direction.

Digital record rules worth knowing

For every transaction, record the amount, the date and the category (GOV.UK: create digital records).
If you use a spreadsheet plus other software, they must be digitally linked. GOV.UK says you must not move records by writing them out again, by copy and paste, or by cut and paste.
HMRC sees category totals, not your individual receipts or invoices.

Keeping your records in a spreadsheet?

I made an Excel / Google Sheets workbook with exactly these categories as drop-downs. It calculates the cumulative total for each update and tracks the deadlines. It is $19, and it is a record-keeping tool: you still need bridging software to send the updates.

See the workbook

You can also build your own from the lists above. Everything you need is on this page.

This guide is general information taken from GOV.UK on 20–21 October 2026, not tax advice. HMRC can change these rules, so check the linked pages before you rely on them.