MTD quarterly updates: a staffing problem, not just a software one

Most of the conversation about Making Tax Digital for Income Tax is about software: which product, which bridging tool, which clients are in scope. Those questions matter. But for a practice owner, the harder question is usually simpler: who is going to do the extra work, and when?

What actually changes

For clients in scope, a single annual Self Assessment return is replaced by quarterly updates plus a Final Declaration. For 2026/27 the quarterly updates are due on 7 August, 7 November, 7 February and 7 May. That is four deadlines a year per in-scope client, on top of the work that was always there.

The shape of the workload shifts

Before, a lot of Self Assessment work piled up around one date: 31 January. The pressure was intense, but it was predictable, and many practices staffed around it with overtime, seasonal help or simply long hours.

With quarterly updates, the same work is spread across the year in smaller pieces. Each window needs records to be chased, categorised and reconciled, then reviewed and submitted. A practice with a meaningful number of in-scope clients doesn't lose the January peak; it gains several smaller ones.

Why this is a capacity problem

• Records have to be ready earlier. Chasing a client for a shoebox of receipts once a year is different from chasing them four times.
• Review happens more often. Each quarter needs a check, not just the year-end.
• Deadlines overlap with existing work. The 7th of the month lands in the same weeks as VAT returns, payroll and other regular deadlines.
• The work is repetitive by design. That is good for process, but it means steady, ongoing hours rather than an occasional push.

Options for handling it

Practices tend to choose from a handful of approaches, often in combination:

• Absorb it with the existing team. Workable with a small number of in-scope clients, but it gets harder as the number grows, and it risks squeezing time for advisory work.
• Hire. Adds permanent capacity, but recruiting and training takes time, and the cost is fixed even in quieter months.
• Standardise client processes. Consistent bookkeeping tools, clear deadlines and automated reminders reduce the chasing, whichever route you take.
• Outsource the repeatable parts. Preparation and reconciliation can often be handled by an external team working inside your software, with your own team reviewing and keeping the client relationship. If you go this way, our 10-question checklist for choosing an outsourcing provider is a good place to start.

A practical way to start planning

1. List which clients are likely to be in scope, now and as thresholds change in future years.
2. Estimate the hours per client per quarter, using last year's Self Assessment work as a starting point.
3. Map those hours against your calendar, and look for the weeks where they collide with other deadlines.
4. Decide which parts you want to keep in-house, and which are candidates to hand off.

For the wider picture of how the tax year looks across deadlines, see the UK tax year mapped for practice capacity planning, and for the detail on scope and dates, Making Tax Digital for Income Tax: what's changed and what's next.