Making Tax Digital (MTD) for Landlords

quarterlyready

• Went through this for the 7 August deadline, so sharing what actually mattered:

1. The quarterly update is just cumulative category totals - HMRC never sees receipts. If you missed anything in Q1, don't panic: updates are year-to-date, so corrections flow into the Q2 one automatically (due 7 Nov).
   
2. You do NOT need £30/month software. Spreadsheet + bridging software is an HMRC-recognised route (gov.uk 'Use Making Tax Digital for Income Tax' guide). Bridging tools run ~£0–£40/yr.
   
3. The categories are fixed — they're in HMRC's 'quarterly update direction' document. Biggest landlord gotcha: residential mortgage interest goes in its own 'residential property finance costs' category (basic-rate credit), not general expenses.
   
4. Nil quarters still need an update. And no penalty points for late quarterly updates this first year — but you can't file the year's return until all four are in.