MTD Quarterly Updates Explained
Written by Tom Ellis · Senior Trades Editor
Quick Answer
A quarterly update is a summary of your income and expense totals sent to HMRC four times a year through your MTD software. You are not sending receipts or invoices — just the category totals. No tax is paid. The deadlines are the 7th of August, November, February and May.
What a quarterly update actually is
A quarterly update is a snapshot of your financial totals for the three-month period — not a detailed list of every transaction. When you submit one, HMRC receives figures such as:
- Total self-employment income: £X
- Materials and stock: £X
- Vehicle and travel costs: £X
- Other allowable expenses: £X
HMRC uses these totals to give you a running estimate of your tax liability — the same way a payslip shows your cumulative earnings and deductions. The underlying records (the invoices, receipts, mileage logs) stay on your side in your software. HMRC does not receive them with the quarterly update, but you must keep them in case of an enquiry.
You submit the quarterly update through your MTD-compatible software. The process is typically a few clicks — review the totals, confirm, submit. For most tradespeople using software with a bank feed, the work is in the day-to-day categorising, not in the submission itself.
The four deadlines
The tax year runs 6 April to 5 April. Each quarter ends on the 5th of the month and the submission deadline is the 7th of the following month.
| Quarter | Period covered | Deadline |
|---|---|---|
| Q1 | 6 April – 5 July | 7 August |
| Q2 | 6 July – 5 October | 7 November |
| Q3 | 6 October – 5 January | 7 February |
| Q4 | 6 January – 5 April | 7 May |
These are the standard HMRC deadlines. Some software providers set internal reminders a week or two before to give you time to categorise anything you have let slip. The dates above are the same regardless of when in the year your business is busy or quiet.
What you do NOT send
Not included: Receipts and invoices
HMRC does not receive your source documents with a quarterly update. The totals are what go through — your receipts stay in your software records for five years in case of an enquiry.
Not included: A tax payment
No money changes hands with a quarterly update. Payment dates stay exactly as they are under Self Assessment: 31 January and 31 July. The quarterly update shows HMRC what you have earned so far; the payment still happens twice a year.
Not included: Your final tax return
The quarterly updates are not your tax return. After the last quarter (deadline 7 May), you still file a final declaration — the equivalent of your current Self Assessment return — by 31 January the following year. This is where you add any other income (employment, dividends, etc.) and claim reliefs.
Quarter periods in plain English
The tax year starting 6 April 2027 gives you these four submission windows:
- Q1 (April–July): Your summer run-up — jobs, materials, fuel, tools. Submit by 7 August 2027.
- Q2 (July–October): Peak summer season for most trades. Submit by 7 November 2027.
- Q3 (October–January): Autumn and the Christmas slowdown. Submit by 7 February 2028.
- Q4 (January–April): End of the tax year. Submit by 7 May 2028.
After Q4 you still file your final declaration by 31 January 2029 — that is your full tax return for 2027–28.
What happens if you miss a quarterly update
Missing a quarterly update earns penalty points under HMRC's new points-based system. Points accumulate per late submission, and when you hit the threshold (four points for quarterly filers), a fixed £200 fine is charged. Points reset after a period of compliance. This is different from the old Self Assessment surcharge system.
Year-one soft landing: For the April 2027 group, HMRC has confirmed it will not issue penalty points for missed quarterly updates during the 2027–28 tax year. This applies to late or missed updates only — the penalty system for the final declaration (your tax return) stays unchanged.
See the full guide to what happens when you miss a quarterly update for the points table, the reset rules, and what to do if you're late.
Quarterly updates vs. Self Assessment: what changes
| Self Assessment (now) | MTD (from April 2027) | |
|---|---|---|
| Submissions per year | 1 (annual return) | 4 quarterly + 1 final declaration |
| Deadline for self-employment records | 31 January (once a year) | 7 Aug, 7 Nov, 7 Feb, 7 May |
| Tax payment dates | 31 Jan + 31 Jul | 31 Jan + 31 Jul (unchanged) |
| Records format | Paper or digital — your choice | Must be digital, in linked software |
| HMRC tax estimate | Once a year on filing | Updated after each quarterly update |
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