---
title: "Making Tax Digital: quarterly updates and your annual tax return"
description: If you're using Making Tax Digital (MTD) for Income Tax, you'll need to keep digital records, send quarterly updates to HMRC and complete your annual tax return.
---

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# Making Tax Digital: quarterly updates and your annual tax return

## If you're using Making Tax Digital (MTD) for Income Tax, you'll need to keep digital records, send quarterly updates to HMRC and complete your annual tax return. It's important to understand what each step involves, particularly if you receive income from sources other than your rental properties.

### **What's the difference between quarterly updates and your annual tax return?**

**Quarterly updates** provide HMRC with information about your property and self employed income and expenses recorded during the tax year.

They aren't a complete tax return and don't include everything HMRC needs to calculate your final Income Tax liability.

**The end of year tax return** brings together your relevant income and gains for the tax year, including any adjustments needed to finalise your tax position.

You'll still need to complete your end of year tax return even if you've submitted all your quarterly updates.

### **What if I have income from other sources?**

If you receive income from other sources alongside your rental properties, you'll need to make sure this is included where required in your end of year tax return.

This could include:

- Employment income.
- Savings interest.
- Dividends.
- Other taxable income or gains.

Your quarterly property updates don't include these income sources.

We recommend checking with your accountant which information needs to be included and how it will be reported.

### **Can I use different software for different income sources?**

Yes. HMRC allows you to use more than one compatible software product where needed.

For example, if you have both rental property income and self-employment income, you may need software that supports each type of income.

Hammock provides property-focused bookkeeping and MTD functionality, and also has partnerships with QuickBooks and Sage for customers who need to manage self-employment income.

However, it's important to confirm which software will handle each part of your reporting, including your annual tax return.

You can find more information here:

- [Hammock and QuickBooks](https://www.usehammock.com/intuit-quickbooks/)
- [HMRC: Choose the right software for Making Tax Digital](https://www.gov.uk/guidance/choose-the-right-software-for-making-tax-digital-for-income-tax)

### **Who submits my annual tax return?**

This depends on whether you manage your own tax reporting or use an accountant.

Before the end of the tax year, we'd recommend agreeing:

- Who will prepare and submit your quarterly updates.
- Who will make any year-end accounting adjustments.
- Which software will be used to complete your annual tax return.
- Who will submit the return to HMRC.
- Whether any additional software subscriptions or accountant fees apply.

If your accountant is managing your tax affairs, they should confirm which services are included in their agreement with you.

### **When is my annual tax return due?**

The usual deadline for submitting your annual Income Tax return is **31 January following the end of the relevant tax year**.

For example, the return for the tax year ending 5 April 2027 would normally be due by 31 January 2028.

We recommend agreeing a timetable with your accountant well before the deadline so there's enough time to review your records and complete any outstanding adjustments.

Remember, downloading a report or preparing your figures doesn't mean your tax return has been submitted. Make sure you receive confirmation that HMRC has accepted the submission.

### **Need a hand?**

If you're unsure which parts of Making Tax Digital Hammock can help you with, please get in touch at **hello@usehammock.com**.

We can help explain Hammock's available features and how they fit into your property bookkeeping workflow.

For advice on your overall tax position, other income sources or preparing your annual tax return, we'd recommend speaking to your accountant.

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