MTD quarterly updates explained
Quarterly updates are the main new job under MTD for Income Tax. They are short summaries sent every 3 months. They are not monthly, and they are not tax returns.
Not tax advice. This site explains GOV.UK guidance in plain English. Your own position depends on your tax returns and circumstances. Check GOV.UK or ask an accountant before you act.
What a quarterly update is
Every 3 months your software adds up your digital records for each business and sends HMRC the totals for each income and expense category. HMRC does not get individual receipts or invoices. You do not need to make accounting or tax adjustments before sending one (GOV.UK).
Each update covers the tax year so far, so the third one (standard periods) covers 6 April to 5 January. If you spot a mistake, correct your records and the fix goes into the next update.
If you had no income or expenses in a period you must still send the update.
Periods and deadlines
| 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 (next tax year) |
Use calendar periods if your accounting period is 1 April to 31 March. Choose this in your software before your first update: once you have sent one, you cannot change it for the rest of that tax year. Calculate your dates.
Sending early or more often
You can send an update any time after the period ends, up to the deadline, or up to 10 days before the period ends if you do not expect any more transactions. You can also choose to send updates more often (for example monthly running totals), but you do not have to. They still need to build up to the full quarterly period.
Your tax estimate
After each update you can see an estimate of your tax bill for the year so far, in your software and your HMRC online account. HMRC adds information it already holds, such as your student loan plan. Repaying a Plan 5 loan? See UK Loan Plan 5.
After the fourth update
After your final update you check whether you need adjustments, add other income (such as savings interest or dividends) and reliefs, and submit your tax return through the software by 31 January. You may need to resend your fourth update first if you correct your records, add joint property expenses or claim Rent-a-Room relief (GOV.UK).
If you are late
For the 2026 to 2027 tax year HMRC will not give penalty points for late quarterly updates, but you must send all of them before you can submit your tax return. From 2027 to 2028, each missed deadline can earn a point. See MTD penalties.
Questions
Are MTD updates monthly?
No. They are quarterly, every 3 months. Sending more often is optional.
Is a quarterly update a tax return?
No. It is a summary of totals. You still submit one tax return a year by 31 January.
Do I pay tax every quarter?
No. Sending an update is not a payment. You pay as before: by 31 January, plus payments on account on 31 January and 31 July if they apply to you.