MTD quarterly updates: what do you actually need to send to HMRC?

Quarterly updates are the part of Making Tax Digital that makes many sole traders nervous. The good news is that they are summaries of income and expenses, not a full Self Assessment return four times a year.

What a quarterly update contains

A quarterly update is a digital summary of business income and expense totals for the period. Your software uses your digital records to send category totals to HMRC. You are not normally sending every receipt, invoice, or bank statement line one by one.

What it does not contain

A quarterly update is not the final tax calculation. It does not settle all allowances, adjustments, other income, pension relief, student loan deductions, or the final Self Assessment position. Those are handled later in the year-end process.

Quarterly deadlines

For standard tax-year quarters, the broad pattern is:

6 April to 5 July: update due by 7 August.
6 July to 5 October: update due by 7 November.
6 October to 5 January: update due by 7 February.
6 January to 5 April: update due by 7 May.

HMRC also provides calendar quarter options in some cases. Check your software settings and HMRC guidance before assuming which period basis applies.

How quarterly updates differ from the annual return

The quarterly update is about regular reporting from digital records. The annual finalisation is where you confirm the complete tax picture. That final position still matters because it determines the tax due, payments on account, and any balancing payment.

Do you pay tax quarterly?

MTD quarterly updates are reporting deadlines, not automatically quarterly tax payment deadlines. The existing Self Assessment payment rhythm, including 31 January and 31 July payments on account where relevant, remains important. See our payments on account guide if January bills are your main worry.

What records should you keep?

Keep invoices, receipts, bank records, mileage logs, home-office calculations, and notes for any expense split between business and private use. The better your records are during the quarter, the less work you have at the submission deadline.

Practical workflow

Connect bank feeds or import transactions weekly.
Match invoices and receipts before the end of each month.
Review expense categories before the quarter closes.
Submit the quarterly update from compatible software.
Keep a separate estimate of the tax bill for cash-flow planning.

What if the quarterly figure is wrong?

Mistakes can usually be corrected later, but repeated messy updates create stress and can weaken your records. Treat each quarter as a bookkeeping checkpoint rather than a rushed filing exercise. If your records are complex, ask an accountant how they want you to handle corrections.

Related MTD guides

Start with the overview: Making Tax Digital for sole traders from April 2026. If you still need software, compare FreeAgent, QuickBooks, and Xero.

Official source

HMRC's live MTD guidance is on GOV.UK: Use Making Tax Digital for Income Tax.