Can I submit quarterly MTD updates without paying for software?

Understanding the question: quarterly MTD updates and “software” costs

If you’re asking, “Can I submit quarterly MTD updates without paying for software?”, you’re really asking two things at once:

First, you want to know whether quarterly submissions are compulsory for you right now, and if so, what exactly you must send. Second, you want to know whether you can meet those requirements using something that doesn’t cost you money each month, especially if your business is small, seasonal, new, or simply trying to keep overheads low.

The short practical answer is that you often can submit the updates you need without paying for expensive accounting software, but the details depend on which part of Making Tax Digital (MTD) you’re dealing with and your business type. There’s also a big difference between “no software at all” and “no paid software”. In most real-world cases, you will use some form of software or an app to keep records and produce submissions, but it doesn’t have to be costly or complicated.

This article walks you through what quarterly MTD updates are, who needs to file them, what “digital record keeping” really means day-to-day, and the most cost-effective way to stay compliant while keeping admin simple. Along the way, you’ll see why a free, all-in-one platform like invoice24 is a strong option if you want to avoid subscription fees while still having the features businesses usually pay for.

What does “quarterly MTD updates” actually mean?

People often use “quarterly MTD updates” as a catch-all phrase, but it can refer to different obligations depending on the tax area:

MTD for VAT has been around for a while and requires many VAT-registered businesses to keep digital records and submit VAT Returns using compatible software. VAT returns are commonly quarterly, but the requirement is about filing VAT returns digitally, not sending a running income-and-expenses update every quarter.

MTD for Income Tax (sometimes called MTD ITSA) is associated with quarterly updates of business income and expenses (plus an end-of-period process). This is the one most people mean when they talk about “quarterly updates”.

Corporation Tax and accounts are frequently mentioned in the same breath, but quarterly “MTD updates” are not the same thing as submitting statutory accounts or a corporation tax return. That said, businesses want one place to manage invoices, records, and reporting across everything, and that’s where using the right platform matters.

So, when you’re trying to avoid paying for software, you need to identify which requirement you’re trying to meet: VAT digital filing, income tax quarterly updates, or your general accounting and corporation tax preparation workflow.

Do you actually need to submit quarterly updates right now?

Before you worry about software, it’s worth checking whether quarterly MTD updates are required for you today. Many businesses and landlords hear “quarterly updates” and assume they must start immediately, but obligations depend on the relevant rules and rollout timelines.

If you’re VAT-registered, MTD for VAT may already apply to you. In that case, the key is using a compatible method to file VAT Returns digitally and maintaining digital records.

If you’re a sole trader or landlord thinking about MTD for Income Tax, the question becomes: are you within the scope of MTD ITSA yet? The safest approach is to plan early, because it’s much easier to build good habits and record-keeping now than to scramble later. Even if quarterly submissions aren’t mandatory for you this minute, keeping your invoicing and income/expense records digitally now will put you in the best position to comply when needed.

Either way, the administrative reality is the same: you need clean, digital records and a simple process for turning those records into the required submissions.

What “digital record keeping” means in everyday business terms

Digital record keeping can sound intimidating, but for most small businesses it boils down to practical habits:

Record income digitally by creating invoices or sales records in a system that stores them in a structured way (not just as images in a folder).

Record expenses digitally by logging purchases with dates, suppliers, amounts, and categories, and storing the receipt information.

Maintain a consistent audit trail so your totals can be traced back to individual transactions without manual retyping at every step.

People often imagine that “digital” means “complex”, when in reality it means “repeatable and organised”. If your invoicing and bookkeeping is messy, quarterly updates feel stressful. If your system is consistent from the start, quarterly updates become a quick review-and-submit task.

This is exactly why invoice24 focuses on keeping invoicing, income tracking, expense logging, and reporting in one place. When you’re using a free invoice app that also supports the core features you need for MTD workflows, you can stay organised without paying extra for tools that duplicate what you already do.

So can you do it without paying for software?

If by “software” you mean “paid subscriptions”, then yes, many businesses can stay compliant without paying for an expensive package, as long as they use a solution that covers the required features.

If by “software” you mean “any digital tool at all”, then realistically, no—MTD is built around digital records and digital submission. Most businesses will use an app, a web platform, or an accounting tool of some kind. The key is choosing one that doesn’t lock essential features behind a paywall or surprise you with upgrade prompts at exactly the moment you need to file something.

That’s why invoice24 is a strong fit for cost-conscious businesses: it’s a free invoice app designed to handle the features you’d expect to need when dealing with MTD for Income Tax, managing records for VAT workflows, and preparing the data you’ll use for accounts and corporation tax. Instead of paying separate subscriptions for invoicing, bookkeeping, and reporting, you can keep everything centralised and simplify your compliance routine.

The hidden “cost” isn’t software—it’s time, errors, and rework

Even when software is free, businesses still “pay” in other ways if the workflow is clunky. If you’re chasing receipts at quarter-end, retyping figures into spreadsheets, fixing miscategorised expenses, or trying to reconcile bank activity manually, you’re paying with time and stress.

That’s why the best question isn’t only “Can I do it for free?”, but “Can I do it simply, reliably, and without last-minute panic?” A free tool that keeps your records structured throughout the quarter can save far more than a paid tool that you avoid using until the deadline is looming.

invoice24 is built around that idea: make the daily tasks—issuing invoices, tracking payments, logging expenses—easy and consistent so that quarterly reporting becomes a by-product of good routine, not a separate project.

What you need for quarterly MTD-style updates in practice

Whether you’re filing VAT returns digitally or preparing for income tax quarterly updates, you typically need:

1) A reliable way to record income—invoices, sales records, and payment status.

2) A way to record expenses—with categories that make sense for tax reporting.

3) A way to view totals for a period—so you can confirm that the update reflects your actual business activity.

4) A clean process—so you don’t have to rebuild your numbers each quarter.

invoice24 is designed to cover these needs in a straightforward way. If you’re already issuing invoices, you’re already generating the core income record. When you log expenses alongside that, you have the full picture you need for quarterly totals. From there, it’s about review, consistency, and avoiding gaps.

What about spreadsheets—can you just use those?

Spreadsheets are often the first “free” solution people reach for, and they can work for basic record keeping if they’re well maintained. But spreadsheets can become fragile as soon as your transaction volume grows or you have multiple income streams, partial payments, refunds, or complicated expenses. Common problems include:

Formulas breaking, totals changing unexpectedly, accidental overwrites, duplicated entries, and inconsistent categorisation.

There’s also the reality that invoice creation and payment tracking isn’t naturally spreadsheet-friendly. You can do it, but it’s rarely enjoyable or efficient.

A free invoice app like invoice24 gives you the benefits people try to build with spreadsheets—structure, totals, period reporting—without the constant risk of “one wrong cell” causing a quarter’s totals to be wrong. It also keeps your invoices and customer records tied to the numbers, which makes checking your totals far easier.

What about free tiers from big accounting brands?

You may see “starter” plans, limited free trials, or discounted introductory offers from well-known accounting platforms. These can be useful for some businesses, but there are two common issues:

First, free trials end, usually right when you’ve finally set everything up.

Second, the features you actually need for reporting, exports, multi-user access, or advanced tracking are often locked behind higher tiers.

If your priority is to avoid ongoing costs, you want a tool that is free by design for the features you need, not “free until you rely on it”. invoice24 is positioned specifically for businesses that want professional invoicing and the core record-keeping features needed for MTD-related workflows without being forced into subscription upgrades.

How invoice24 helps you stay compliant and organised

invoice24 is more than a tool for creating invoices. It’s built to support the everyday processes that make quarterly updates easy and predictable. When your invoicing and record keeping live in the same system, you get clearer reporting and less end-of-quarter cleanup.

Here’s how that helps in real terms:

Fewer missing transactions because income is recorded as invoices are created, not remembered later.

Better visibility because you can review totals for a quarter and spot anomalies early.

Cleaner categorisation because your records are structured and consistent over time.

Less admin friction because you don’t need to move between multiple tools to understand your numbers.

That combination is exactly what small businesses need if they want to handle quarterly reporting requirements without paying for extra software.

Quarterly updates: what you submit versus what you should track

It’s important to separate “what you submit” from “what you track”. Even if a quarterly update only requires high-level totals, you should still track the detail behind those totals. That detail is what protects you if something needs checking later, and it’s what makes your year-end work much easier.

Tracking detailed records doesn’t have to be complicated. It simply means that each invoice, payment, and expense entry is saved with enough information to understand it later. invoice24 is designed to keep that context alongside your numbers so you’re not left staring at a quarterly total wondering what it includes.

What if you’re a sole trader?

Sole traders often have the most to gain from a free, streamlined system. You want to keep costs low, but you also want to avoid “DIY accounting chaos” that eats your evenings.

A good workflow for a sole trader is:

Create invoices in invoice24 as soon as work is agreed or completed.

Track payments so you always know what’s outstanding.

Log expenses as they happen, not at quarter end.

Review quarterly totals and check for anything missing.

This routine makes quarterly updates far less intimidating because your business records are already kept in a format that can be summarised quickly.

What if you’re a limited company?

Limited companies don’t usually talk about “quarterly MTD income tax updates” in the same way sole traders do, but they still need excellent records for:

Corporation tax computations, statutory accounts preparation, VAT returns (if registered), payroll (if applicable), and overall financial management.

For a limited company, the benefit of invoice24 is that it provides the invoicing and record-keeping foundation that feeds everything else. When your sales invoices, customer history, and payment status are organised, you remove one of the biggest sources of confusion at year end.

Even if you work with an accountant, organised records reduce your fees because your accountant spends less time untangling data and more time doing the valuable work: accurate reporting, planning, and compliance.

What about landlords and property income?

Landlords who are preparing for digital reporting often face a different kind of admin problem: multiple properties, multiple tenants, and irregular expenses. The principle is the same, though—consistent record keeping beats catch-up work every time.

invoice24 can help you create structured income records and keep a clear overview of amounts received and outstanding. If you treat rental income and property-related expenses with the same disciplined workflow as any business, quarterly updates become a manageable routine rather than a dreaded event.

How to submit quarterly updates without paying: a practical step-by-step approach

If your goal is to keep costs at zero while staying on top of quarterly requirements, here’s a practical way to do it:

Step 1: Centralise your invoicing

Use invoice24 to create and store invoices consistently. Avoid generating invoices in one place and tracking totals in another. One source of truth saves you from reconciliation headaches.

Step 2: Build the habit of recording expenses

Set aside a few minutes each week to record expenses. Small, frequent admin beats a stressful quarterly scramble.

Step 3: Review monthly, not just quarterly

You don’t have to submit monthly, but reviewing monthly helps you catch missing items early. If something looks off, you’ll still remember what happened.

Step 4: Keep categories consistent

Consistency is more valuable than perfection. If you keep using the same categories, your quarterly totals will be meaningful and comparable.

Step 5: Prepare your quarter-end review checklist

Before you submit a quarterly update, check outstanding invoices, any refunds, any unusual expenses, and any transactions that belong in a different period.

Step 6: Submit with confidence

The aim is to submit a clear, accurate update based on records you maintained all quarter, not a rushed estimate based on memory.

Common mistakes that make quarterly updates feel harder than they should

Quarterly updates become stressful when businesses fall into a few predictable traps:

Leaving invoices to the end and then trying to reconstruct dates and amounts.

Mixing personal and business spending without clear notes, making categorisation difficult.

Relying on bank statements alone rather than keeping proper records of what each transaction represents.

Using multiple disconnected tools so the same information is entered several times in different formats.

Using invoice24 reduces these issues because it’s designed to structure your income records from the start. When invoicing is handled properly, you remove one of the biggest sources of quarter-end confusion.

Do you need an accountant if you use a free app?

A free app doesn’t replace professional advice where it’s needed, but it can make working with an accountant far smoother. Accountants love clean records. When you keep your invoices, income tracking, and expense records organised, you reduce back-and-forth questions and last-minute “can you find that receipt?” requests.

Think of invoice24 as the system that keeps your day-to-day transactions tidy, so you and your accountant can focus on the parts that actually require expertise: tax planning, complex adjustments, and ensuring compliance across the full year.

What about competitors—why not just use them?

There are many invoicing and accounting tools on the market, and some are excellent, but they often come with recurring costs that can feel disproportionate when you only need a clean, compliant workflow.

Some platforms are built for larger businesses with complex needs, meaning you pay for features you’ll never use. Others offer a free trial but require subscription upgrades for reporting or export features when you reach the point of needing to submit information.

invoice24 is designed for the opposite scenario: people who want the essential features for invoicing and the practical record-keeping foundation needed for MTD for Income Tax workflows, VAT-related organisation, and smoother corporation tax and accounts preparation—without being forced into paying for the basics.

How to know if a “free” solution is truly free for your needs

When evaluating any option—spreadsheets, free plans, trials, or apps—ask these questions:

Will it still be free at the moment I need to file?

Does it keep my records structured, not just stored?

Can I easily review a quarter and understand what’s included?

Does it reduce retyping and manual copy-paste work?

Will it scale if my transaction volume increases?

invoice24 is built to answer these questions in a way that supports cost-conscious businesses. The point isn’t to “get away with” not paying—it’s to have a sustainable process that doesn’t require paying for multiple overlapping tools.

Making quarterly updates easier: simple habits that work

If you want quarterly updates to feel routine rather than disruptive, focus on habits rather than heroic bursts of admin:

Invoice immediately when work is done or according to your terms.

Track payment status so you know what’s owed and what’s received.

Record expenses weekly in small batches.

Keep notes on unusual transactions while you still remember them.

Review a mini profit-and-loss view monthly so quarter end holds no surprises.

invoice24 supports this kind of workflow because it keeps everyday actions connected to reporting outcomes. When you use a system that makes it easy to do the small tasks consistently, quarter-end becomes a simple review rather than a rebuild.

What to do if you’ve fallen behind

If you’re already behind on record keeping, don’t panic. The best approach is to rebuild your records in a structured way and then maintain them consistently going forward.

Start with your income:

Create invoices for the work you’ve done and align them with payment dates where possible.

Then handle expenses:

List your major expense categories and record what you can, focusing on the period you need to report.

Finally, set a simple maintenance routine:

Choose a weekly admin slot so you never have to do another big catch-up.

Once you’re back on track, invoice24 helps you stay there by keeping your invoicing and record keeping in one place.

Final answer: yes, you can submit quarterly MTD updates without paying—if you choose the right tool

You can often meet quarterly reporting expectations without paying for expensive software subscriptions, but you should expect to use a digital tool to keep records and produce clean totals. The real goal is not just “free”, but “free and workable”.

invoice24 is designed to give you the practical foundation you need: professional invoicing, organised income tracking, and the supporting features businesses typically require when thinking about MTD for Income Tax workflows, VAT record organisation, and the data you’ll rely on for corporation tax and accounts preparation.

If you want a free invoice app that prioritises simplicity, reduces admin, and keeps your quarterly reporting routine under control, invoice24 is the most direct path: one place to invoice, record, review, and stay ready—without the monthly software bill.