Personal Tax- Making Tax Digital(MTD) and Quarterly Submissions 2024/25 onwards

personal-tax-making-tax-digitalmtd-and-quarterly-submissions-2024-25-onwards

Personal Tax- Making Tax Digital(MTD) and Quarterly Submissions 2024/25 onwards

8th April 2025

IRIS Personal Tax- Making Tax Digital(MTD) and Quarterly Submissions for 2024/25 onwards for Sole Trade/UK Property and Foreign Property.

For the operation of HMRC MTD and Quarterly Submissions 2024/25 in Personal Tax, go through these steps below: For advise email MTD@IRIS.co.uk. To register for the pilot go here

For the ‘MTD insights’ pack which has videos on how to get it operating- go here

Making Tax Digital functionality has finally arrived, we have updated the Personal Tax product to enable you and your practice in preparation for the MTD pilot (April 2025). MTD functionality will run alongside the standard SA functionality and will simultaneously complete the clients SA return as well as giving the ability to complete in-year obligations where a client has been identified as MTD compliant. In this release of IRIS, we have delivered functionality which will enable you to complete the full end to end journey for individuals. The software will allow you to complete the in-year obligations associated with income sources which are required to be submitted quarterly, this will include sole trade, UK and foreign property Income. Additionally, the software facilitates the completion of the individual’s end-of-year financial position by submitting the final declaration to HMRC.
All MTD related submission will be channeled through the IRIS Digital Tax Hub, where the software will guide you through the MTD workflow, highlighting any outstanding tasks to simplify a complex MTD workflow.

This KB article covers the process of getting the periods to show and how to submit them to HMRC:

a. IRIS version 25.1.0 or later version is required to launch the HMRC MTD system (starting in 2024/2025)- Help and About to check and then update. Then ensure you have registered for the IRIS pilot for 2025 onwards.

b. HMRC step: You need an ‘Agent Services Account’ created via the HMRC website (or we commonly use the term ‘ASA’ login). Your ASA allows the online interaction between your HMRC account and the IRIS PT. This ASA login is NOT the same login as your other HMRC ‘Agent credentials’ (which is used for BT/PT/TT submissions) and is the same as the ASA login used for the VAT filer.

c. HMRC step: You need to move your PT clients to your ASA and sign them up for MTD on the HMRC site. If you do not move and register your clients then no quarterly periods will show for your client. Upon completion of your ASA and client setup to MTD, go below for the next steps needed in Personal Tax.

d. Affects specific Income types This is only required for PT clients with three types of income: Self Employment(Sole trade), UK Property and Foreign Property. Any income which is not the three types listed above do not need quarterly submissions and just require end of year submission online of January. Note: If you have a client with multiple sole trade businesses then each one needs its own quarterly submission. So for example if you normally have 1 sole trade= a minimum of 4 quarterly submissions are required, if 3 sole trades= 4+4+4 totaling 12 quarterly submissions are required etc. There is no mass submit tool for all sole trades. HMRC require a separate submission PER sole trade, see step 5). It is also the cumulative total of the three required incomes to meet the thresholds, see step e).

e. Thresholds of income requiring submission? HMRC have decided to time stagger out the release of quarterly submissions based on the clients income. If the total cumulative Income falls within £1- £19,999 then HMRC do not require quarterly submissions and only require end of year submission as per old rules. Currently HMRC plan is income threshold £50K+ for April 2026, 30K-50K for April 2027, 20K-30K for April 2028(TBC).

f. Why it shows the same values on all periods and Reporting types of the quarters? In specific reports it will list the per quarters values as a cumulative total which include any prior quarters. This is by HMRC design. For example Quarter 1 income is £1000, Q2 income is £500, Q3 is £0 and Q4 is £0. When you run certain reports which lists the 4 quarters it may a £1500 per quarter, rather then £1000 for 1st and £500 for 2nd and if you only enter for Q1- this value will appear on Q2/3/4 as well. Only specific reports will use the cumulative totals.

g. How to input/import values? In 2025 you may still manually enter Income/expenses etc into PT. However in 2026 users of PT can ONLY IMPORT the Income/expenses etc into PT from a CSV file. You cannot manually enter in the values anymore after a set date as the income etc boxes will be greyed out.

In Personal Tax, if you have completed the HMRC steps B) and C) above.

1.Load PT and the client which you agreed to run quarterly returns for them and select the 2025/2026 year. Go to Administration and Edit Tax Return dates. In the ‘Registered for MTD’ field, enter the date (tick the box if you need to edit the date, once saved this box will untick itself). OK. This DATE is required to work with MTD.

Warning: If you have a date entered here, whenever you try and access trades and property screens; it may load the HMRC login screen or you get a ‘Client or agent is not authorised’ warning. This is because PT is now trying to automatically link to HMRC to allow quarterly returns – you can either read the rest of this KB to set up your ASA correctly OR remove the date under ‘Registered for MTD’ field (keep that date saved outside of IRIS) which stops the link to HMRC.

2. A ‘HMRC popup’ may show when you run actions in PT, eg accessing/run reports etc. So login using your ASA login (This may also show on step5). It may also ask for security questions user Identity like passport etc about yourself as the PT user/accountant (and not your clients details). These are HMRC requirements (not IRIS) which you must answer to proceed. If you have any issues with a question or cannot get to work then contact HMRC support and state you are trying to answer a security question but you get a issue etc. We recommend you take screenshots of the issue which will help on the call.

3. Go to Setup/Authorised Agents – if step 2) is completed your ASA login will show under a row named ‘SELF ASSESSMENT’ with date (note this ‘date’ down). If this row ‘SELF ASSESSMENT’ is missing then MTD will not work and you need to go back to step 1) above and try again to sign in with your ASA login.

If you need to reset/delete it? Click on the relevant ‘Self assessment’ row and click ‘reset agent credentials’ and ok to warning. It will be deleted, Ok to exit this screen and go to retrieve the quarter periods, the HMRC screen will show to allow you to login with ASA.

Close screen go to the TPV STP Summary screen, open the relevant Sole trade period. Go to the ‘Period settings’ tab. Click – ‘Retrieve periods from HMRC’. It may also request you login to HMRC here. If you have successfully registered – the 4 Quarter Periods will show on screen and which of the 4 periods have submitted or not. If the periods are missing, close and restart PT and check again. If still missing then can you create the next period 05/04/2026- open this new period, go to the ‘Period settings’ tab. Click – ‘Retrieve periods from HMRC’.

4. Go back to 1st tab ‘Gross profit’– at the top on the ‘Select Period’ field, this can now be pulled down to list all 4 quarters – select the relevant quarter and manually enter income/expenses per quarter and save. The summary screen will show the updated values

‘Select Period’ option is missing on the Gross Profit tab? Its specific to the YEAR selection AND PERIOD selection. Go to the year at the top of PT, eg if you are on 2025, then change to the next year 2026, open the relevant period (remember to check several periods) and check. OR if you are on 2026, then change to the next year 2025 open the relevant period(remember to check several periods) and check.

Note: If you cannot see these options on your client then its now enforced a ‘import of values’ method and not manual entries (see step 5 and step 8 and use the ‘Digital Tax Hub’ to view/access the quarters etc)

5. Back to the main PT screen, on the TOP RIGHT click the icon: ‘Digital Tax Hub’ and it will try and link this client to the HMRC system (it may ask you to login here as well, see step 2 above).

This example is for Sole Traders: on the TOP LEFT, place your cursor over the Sole Trade/’client name’ and it will list the sole trades and allows you to select the ‘Self employment’ business name, if multiple businesses then select the specific name. It will then load in the Quarterly Periods for this one trade. If no periods show then there is a issue either with your ASA login or a HMRC issue.

Known HMRC issues with periods – The order of the quarters are random order. These have been investigated by IRIS Development and working with HMRC to resolve the random issue – you can still manually select the correct period to import and submit it. The 4th quarter is missing or Incorrect period date eg it shows as ‘6 April 2025 to 5 January 2026’ are both known HMRC issues, you will need to contact HMRC on this.

6. Click on the left side on Period 1 or Period 2 etc. Check if the values are correct or need to be edited. If correct then click ‘Finalise’ (a pop will appear) and then ‘Submit’. A Pop up on the top right side will show as submitted and the yellow round symbol on left side will change to a green tick (may take a moment for this change). Note: There is no receipt/confirmation email from HMRC, there is just a green tick against it and use the ‘Submissions’ tab on left side (choose ‘Current’ or ‘Previous’ Submissions)– to see records on what is sent or not and keeps track of it. Do this for all 4 quarters based on their deadlines. If the status says ‘REJECTED’ then go to option ‘Previous submissions’ then you can find the rejection and reason for rejection.

Note: Once clicked ‘Finalised’ – It will lock in and stop any further editing of manual income/expenses values (the boxes which you can normally access are now greyed out). You will need to click ‘reset status’ which allows editing of values again.

7. HMRC allows you to send amended values for quarters (Within the HMRC timescales), correct the values and submit again and it will supersede the original submission. See step 11.

8. 2026 changes to data entry. When the quarters is all completed in 2025 then change year to 2026, the income/expenses boxes are now blocked as users CANNOT manually enter values directly (Boxes are greyed out, see below). HMRC do not want users to enter values directly into PT like before, it must come from a EXCEL/CSV source.

9. Close the Gross Profit screen and go to the very bottom of the screen – Users can only use a new ‘Import postings‘ button and ‘IMPORT FILE’ at the top tool to import a csv file. You can use set import csv/excel templates, click on SETTINGS on bottom left and IRIS import templates OR the site here . Open the relevant IRIS Excel file – type in the RENT value and the relevant Expense types under the ‘IRIS Category’ with dates and values, then save as a CSV file and close it.

10. Ensure the entries are saved as a CSV, then import the data into PT. The values now show in a summary screen to allow a final check before importing (this also allows changing of a category). If correct now click IMPORT. The data will be transferred into PT for the relevant periods sole trade. On the TOP RIGHT click the icon: ‘Digital Tax Hub’ and it will now show the data showing into the relevant quarter to allow you to check, finalise and submit. If the ‘IRIS Category’ name is not filled in then just manually just the ‘pull down’ option and select it.

11. In MTD, when you have selected a period which you have already finalised/submitted and need to make amends etc. Click ‘Reset Status’, this will remove the cumulative adding up lock and allow edit the imports again for this period.

12. UK Property and Foreign Property income rules? This uses slightly different rules compared to Sole trader. Once signed in with ASA go to UK Property: UK Land and Property | UK Other Property Summary | Period Settings OR Foreign Property: Foreign | Foreign Other Property Summary | Period Settings. Click ‘Retrieve periods from HMRC’. The quarter periods should show.

You will make manual entries as per normal into PT with their dates and then go to MTD Hub, select the property option and it will list the quarters. Do note this manual entry can be restricted/blocked from a later IRIS version update (Date TBC) and would then require CSV imports and will block manual entries. You do not need to make separate quarterly submissions PER property it has to be ONE single entry which is adding up all the properties rent/expenses etc.

Reasons why submission was REJECTED: If the status says ‘REJECTED’ then go to option ‘Previous submissions’ then you can find the rejection and reason for rejection.

Using the PT Datamining tool– Digital tax client list Digital Tax/Digital tax client list/ The PM Datamining tool will load – do wait if your client list is long. If you are new to this datamining tool then on the top right- click ‘Select an IRIS search’ – These are default report filters built to help with identify clients. Such as income greater or less then 30K etc. Select the relevant option, let it process it and it will load the clients details. The majority of the reports are designed to look at the PRIOR years data and not in the year you are in now. For the PM guide as well

Note: There is a random issue in 2025 where the MTD reporting in PT is not picking up the correct income data OR its omitting clients when they should be listed (Eg You request sole trade income more then 30K from last year but the persons name is not listed on the final report). If you looking at prior year – go back to the prior year and run a ‘FINAL Tax computation’, then change to the latest year and run the MTD report again and it will pick up the data (A ‘final tax comp’ is needed to refresh the data)

HMRC login screen keeps appearing requesting my login information or get Client or Agent not authorised warning?

When you try and access the Trades or Property screens you get the login/warning. Go to Administration and Edit Tax Return dates. In the ‘Registered for MTD’ field- if you have a date entered here, whenever you try and access trades and property screens – it may load the HMRC login screen or you get a ‘Failed auth/client or agent is not authorised’. This is because PT is now trying to automatically link to HMRC to allow quarterly returns – you can either read the rest of the KB to set up your ASA correctly (it may not have been set up correctly and causing the not auth warning) OR remove the date under ‘Registered for MTD’ field (keep that date saved outside of IRIS) which stops the link to HMRC.

NOTE: ‘Registered for MTD’ field is also used on the preset MTD reports when you request ‘All clients registered for MTD’ – if its filled in with a date. If no date then this client is omitted.

The MTD quarter periods do not appear for the client? If they do not appear in the specific PT areas in the above steps (TPV summary screen or the Digital Tax hub) and you do not get any errors appear. 1) Check your ASA login, and have you registered your client correctly on the HMRC site and in PT 2) Reset your ASA login under the Authorised agents screen and login again with your ASA login. Incorrect setup of ASA and clients MTD setup may cause the periods to not appear.

Imported values into the incorrect period, how do I correct it? You have 2 options: 1) Access the period | select the ‘Imported postings’ option and delete one by one. 2) You can import data again but within the import screen | select settings | change the import method to replace | this will replace the already imported postings.

Imported values but it replicates the same values into the other periods? For example – you enter £20,000 into the 1st quarter – this 20K replicates it self into the other quarters etc. This is by visual design agreed with HMRC – periods are a shown as a ‘cumulative’ – once you import the 2nd quarter etc you will see the change. This is also explained on step f) at the top of this KB.

General queries on MTD

1. Are there any future updates in the pipeline that will deal with joint rental income? Answer: IRIS leverages the existing jointly held rental income which has already been incorporated into MTD

2. Are there any future updates in the pipeline that will deal with joint interest income? Answer: IRIS leverages the existing jointly held rental income which has already been incorporated into MTD

3. If one spouse is mandated to MTD and the other in in Self-assessment can joint income be entered once only? Answer: As the MTD solution has been built in parallel to SA existing jointly held functionality will be leveraged and will direct the income to the correpsonding area whether that be MTD or SA for each spouse.

4. Does the dividend data base work with The MTD offering? Answer: Yes this continues to work 

5. Does Iris offer any non-bridging software? Answer: We have an IRIS Kashflow/Cashbook solution (Cashbook is free to our IAS Tax users dependent on license limits)

6. The demos seem to imply that data could be manually input into excel and converted to a CSV for upload. Is this deemed to be digital? Answer: HMRC does in fact accept excels as digital record keeping and IRIS has functionality to consume transactional data electronically which passes digital link rules and so yes this is acceptable

7. Why is the MTD period showing incorrectly (eg 6 April 2025 to 5 January 2026)? This is a HMRC decision: When the user retrieves period data from HMRC, the period returned is based on HMRC’s cumulative reporting structure, NOT the full tax year.
HMRC does not return data up to the end of the tax year (5 April) unless the taxpayer is already in that period.
Instead, HMRC returns: Start date: the start of the tax year (always 6 April), and End date: the end of the current quarterly update period that the taxpayer is currently in.
This means the end date changes depending on when the retrieval is performed: So if a retrieval is triggered today 19 November 2025, HMRC considers the user to be in Quarter 3, so the cumulative period it returns is 6 April 2025 to 5 January 2026, once the date passes 5 January 2026, the same retrieval will return 6 April 2025 to 5 April 2026 because the client will then be in Quarter 4, which is the final cumulative period of the year.

Get error: INVALID REQUEST- BUSINESSES ID IS BLANK. When clicking ‘Retrieve periods’. Click on the button from the ‘Period Settings’ screen, you would have to select the correct business from the “Unmatched record screen” and Click OK. This will match the trade with your client and HMRC MTD.

If you then get a CLIENT OR AGENT NOT AUTHORISED. 1) Check your ASA login, and have you registered your client correctly on the HMRC site and in PT 2) Reset your ASA login under the Authorised agents screen and login again with your ASA login. Incorrect setup of ASA and clients MTD setup may cause the periods to not appear.