MTD quarterly updates are not four tax returns. They are cumulative summaries of your digital records for self-employment and property income and expenses. Each update covers from the start of the tax year to the end of that update period. After the tax year, you make any required adjustments and submit your tax return through compatible MTD software by 31 January.
What does a quarterly update contain?
A quarterly update summarises income and expenses recorded digitally for each relevant self-employment or property income source. Your compatible software totals the required categories and sends them to HMRC. The exact categories depend on the type of activity, but the purpose is to provide a structured summary of records rather than a fully adjusted annual tax calculation.
You should keep the underlying records up to date as close to the transaction date as practical. If a record later changes, you correct the digital record and the next cumulative update can reflect that correction. This is one reason HMRC now describes each update as covering from the start of the tax year to the end of the update period.
Why quarterly updates are not four tax returns
A full tax return brings together the final position for the year, including adjustments, claims, reliefs, other income and gains where relevant. A quarterly update does not require you to finalise all of those items every three months. It is a summary of business and property records, and HMRC uses the data to provide a more current picture during the year.
MTD quarterly update deadlines
The deadline depends on whether you use standard update periods or calendar update periods. The submission deadlines are the same in either case: 7 August, 7 November, 7 February and 7 May. The difference is the exact dates covered by the digital records included in each cumulative update.
| Standard period | Calendar period | Deadline |
|---|---|---|
| 6 April to 5 July | 1 April to 30 June | 7 August |
| 6 April to 5 October | 1 April to 30 September | 7 November |
| 6 April to 5 January | 1 April to 31 December | 7 February |
| 6 April to 5 April | 1 April to 31 March | 7 May |
What happens after the fourth update?
The fourth quarterly update is not the final tax return. After the tax year ends, you need to make sure the digital records are complete and then use your MTD software to deal with year-end adjustments, allowances and other information needed for the tax return. You then review the tax calculation and submit the return through the software.
The tax return deadline remains 31 January following the end of the relevant tax year. For the first mandatory MTD year, 2026/27, the fourth quarterly update is due by 7 May 2027 and the 2026/27 tax return is due by 31 January 2028.
What if a number changes after you sent an update?
Because quarterly updates are cumulative, correcting a digital record can be reflected in a later update without treating every earlier update as a separate standalone return. HMRC's guidance explains how to correct records and, in some situations after the fourth update, resend an update so the latest figures are included before the annual return is completed.
This makes good bookkeeping important. If invoices, expenses and bank transactions are being captured consistently, corrections are manageable. If records are only assembled every few months, the quarterly cycle can turn into repeated catch-up work.
How much bookkeeping work does MTD create?
MTD does not necessarily create four times as much accounting work, but it removes the option of leaving all bookkeeping until the annual Self Assessment deadline. The practical requirement is regular digital record keeping. Businesses that already reconcile bookkeeping monthly will usually have a much easier transition than businesses that work from a year-end box of receipts and bank statements.
Our bookkeeping service can keep records current throughout the year and help organise the reporting cycle. That turns quarterly updates into a routine output from maintained records rather than a recurring clean-up project.
Are there penalties for missing quarterly updates?
HMRC's current guidance says people required to use MTD from 6 April 2026 will not receive penalty points for late quarterly updates during the first MTD tax year, 2026/27. That does not remove penalties for late tax returns or late payment of tax. The penalty system is detailed and can change, so check the latest official guidance before relying on a deadline concession.
How to make the quarterly cycle easier
The most reliable approach is to treat MTD as a workflow rather than four isolated deadlines. Choose software before your start date, connect bank feeds where suitable, capture expenses regularly, reconcile accounts every month, review unusual transactions early and keep responsibility for each submission clear between you and your accountant.
- Keep bookkeeping current monthly or more often.
- Use consistent categories for income and expenses.
- Keep property and trading records clear when you have both.
- Review the figures before each deadline rather than on the deadline day.
- Leave year-end tax planning and final adjustments for the annual return process.
Example: the full 2026/27 MTD reporting timeline
Take a sole trader who started mandatory MTD on 6 April 2026 and uses standard update periods. They keep digital records from 6 April, send the first cumulative update by 7 August, the second by 7 November and the third by 7 February 2027. The fourth update, covering the whole tax year to 5 April 2027, is due by 7 May 2027. After that, the records are finalised and the 2026/27 tax return is completed and submitted through the MTD software by 31 January 2028.
This timeline shows why the quarterly submissions should not be confused with the annual return. The 7 May update is still a summary of the digital records, while the later tax return is where the final annual position is confirmed. Keeping that distinction clear helps business owners plan the workload and avoid treating every quarter as a miniature January Self Assessment deadline.
Quarterly update FAQs
Do I pay tax every quarter under MTD?
Quarterly updates do not themselves create a new quarterly income-tax payment schedule. Your tax-payment obligations remain governed by the Self Assessment payment rules unless HMRC changes them separately.
Do I need one update or several?
You generally send updates for each relevant self-employment or property income source. Your software should help you identify the updates required for the activities you have registered.
Can my accountant send the updates?
Yes. An authorised agent can act for you, provided the appropriate HMRC agent and software authorisations are in place. You still need to provide the records and information needed to keep the digital records complete.
Can I correct mistakes later?
Yes. MTD is designed around maintained digital records, and corrected records can feed into later cumulative updates. Specific correction steps depend on timing and your software, so follow the current HMRC instructions.