MTD for Income Tax: quarterly updates explained
Under Making Tax Digital for Income Tax, you swap one annual return for four quarterly updates plus a final declaration. A quarterly update is simply a running summary of your income and expenses, sent to HMRC through your software. Here’s exactly what that means in practice.
Reviewed July 2026. Figures are correct at the date of review. Always check GOV.UK for the latest.
The short answer
A quarterly update is a short summary of your business and property income and expenses, sent to HMRC through MTD-compatible software four times a year. It replaces part of the old annual Self Assessment return, but it isn’t your final figures, and it doesn’t change when you pay your tax.
What goes in a quarterly update
Not much, if your records are up to date. Each update reports totals of your income and expenses for each business or property, grouped into standard categories. There’s no tax calculation to do and no reliefs to claim at this stage: that all happens in the final declaration.
The four periods
There are four standard update periods across the tax year. Importantly, each update is cumulative. It covers from the start of the tax year (6 April) to the end of that period, not just the latest three months:
| Quarter | Period covered (to) | Deadline |
|---|---|---|
| Q1 | 6 April to 5 July | 7 August |
| Q2 | 6 April to 5 October | 7 November |
| Q3 | 6 April to 5 January | 7 February |
| Q4 | 6 April to 5 April | 7 May |
Because updates are cumulative, a later update naturally includes (and can correct) anything in an earlier one. There’s also an option to use calendar-quarter periods instead; we’ll set whichever suits you. Always check GOV.UK for the latest.
What quarterly updates are not
- They’re not your final figures: you finalise everything in the year-end declaration.
- They don’t change when you pay tax: payment dates follow the usual rules.
- They’re not a full return: no reliefs, allowances or other income at this stage.
The final declaration
After the tax year ends, you submit a final declaration. This is where you confirm your figures, add any other income (like employment or dividends), and claim reliefs and allowances. It replaces the Self Assessment return. See the deadlinesfor when it’s due.
How Xpert makes updates painless
We keep your records current in the background, so each quarterly update is a quick check-and-send rather than a scramble, and we handle the filing for you on a fixed monthly fee. Take our 2-minute quiz to see what that would look like for you.
Frequently asked questions
Common questions about quarterly updates.
What is a quarterly update?+
It’s a summary of your business and property income and expenses for the year so far, sent to HMRC through MTD-compatible software. You send four a year, roughly one a quarter, instead of filing a single Self Assessment return.
Is a quarterly update the same as paying tax?+
No. Quarterly updates are just information: they don’t change when you pay. Your tax is still worked out after your final declaration, and payment dates (including any payments on account) follow the usual Self Assessment rules.
Are quarterly updates cumulative?+
Yes. Each update covers from the start of the tax year up to the end of that period, not just the latest three months, so later updates include and correct earlier figures.
Do quarterly updates have to be perfect?+
They’re summaries, not final figures. You tidy everything up in the final declaration at year end, where you confirm your figures and claim reliefs. Keeping records up to date as you go makes each update quick.
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