Making Tax Digital Quarterly Updates: What to Send and When
Making Tax Digital quarterly updates are about to become a regular part of tax reporting for many self-employed people and landlords. The key is understanding what HMRC expects, what your software sends, and why these updates are not the same as a tax return.
About this episode
Making Tax Digital, or MTD, has been talked about for years. Now, for many people, the first quarterly update deadline is becoming a practical reality. In this episode, we explain what Making Tax Digital quarterly updates are, what information is sent to HMRC, why the updates are not tax returns, and how the deadlines work. We also cover nil submissions, tax estimates, calendar update periods, standard update periods, and what happens after the fourth quarterly update. This episode is especially useful if you are self-employed, a landlord, or have a mix of business and property income. It also matters if you want to avoid last-minute stress and build better digital record-keeping habits before the first deadline arrives.
What you’ll learn in this episode
- What Making Tax Digital quarterly updates actually are
- Why quarterly updates are not tax returns
- What information your software sends to HMRC
- Why HMRC does not receive every receipt, bill, or invoice
- What to do if you have no income or expenses in a quarter
- How the main quarterly update deadlines work
- What happens after you submit an update
- Why good digital records make MTD easier to manage
What are Making Tax Digital quarterly updates?
Under MTD, compatible software collects information from your digital records and creates a summary every three months. These summaries are called quarterly updates. The update is sent to HMRC using approved software. It gives HMRC summary totals for income and expenses during the reporting period. It does not send every individual receipt, invoice, bill, or document. If you are self-employed, a landlord, or have both business and property income, you may need to send a separate quarterly update for each qualifying source of income. Our episode on Tax and Your Self Employed Business is a useful starting point for understanding wider self-employed tax responsibilities.
“Making Tax Digital quarterly updates are not tax returns.”
What information is sent to HMRC?
Your software sends totals for income and expense categories. These categories broadly follow the same type of structure used under Self Assessment. Think of the quarterly update as a summary, not the full report. HMRC receives an overview of your business or property income and expenses, not every underlying document behind the figures. You do not need to make year-end accounting adjustments before sending each quarterly update. The figures are based on the records captured so far, and later corrections can be reflected in later updates.
Do you still need to submit if nothing happened?
Yes. If you had no income and no expenses during a period, you still need to send the quarterly update. It will simply be a nil submission. This is one reason consistency matters. MTD is not just about sending figures when the business is active. It is about keeping regular digital records and maintaining the reporting rhythm throughout the year.
Why quarterly updates matter
The purpose behind Making Tax Digital quarterly updates is to give taxpayers a clearer view of their tax position during the year. Instead of waiting until after the tax year ends, you can see an estimated tax position based on information already submitted. This can help if income is irregular, seasonal, or spread across more than one source. Freelancers, creative businesses, landlords, and self-employed people can all benefit from having a clearer view of what may be building up. Our episode on Stop Waiting for HMRC: Prepare for Making Tax Digital Today explains why business owners should prepare early instead of waiting until the deadline pressure arrives.
What happens after you send a quarterly update?
After you send an update, you may be able to view an estimated tax calculation through your software or your HMRC online account. HMRC may include other information it holds, such as student loan or postgraduate loan details. However, the estimate is only as good as the information available at that point. If you have other income sources, such as employment income, savings interest, or additional property income, the estimate may not be complete unless those details are included later. Before the final tax return is submitted, those missing details still need to be added.
Making Tax Digital quarterly update deadlines
Most things in tax come with deadlines, and MTD is no different. For standard update periods, the quarterly updates are cumulative. Each update covers from the start of the tax year to the end of the relevant update period.
Standard update periods
- 6 April to 5 July — deadline 7 August
- 6 April to 5 October — deadline 7 November
- 6 April to 5 January — deadline 7 February
- 6 April to 5 April — deadline 7 May following the end of the tax year
Because the updates are cumulative, you are not normally correcting previously filed updates. Adjustments can be reflected in the next quarterly update.
Calendar update periods
There is also a calendar quarter option using periods ending in June, September, December, and March. The deadlines remain 7 August, 7 November, 7 February, and 7 May. You do not have to wait until the deadline day. You can submit after the update period ends, and in some situations you may be able to submit shortly before the period end if no further transactions are expected.
What happens after the fourth quarterly update?
The fourth quarterly update is not the end of the process. After the quarterly updates, there is still a final tax return submission. For the 2026 to 2027 tax year, the first quarterly update deadline is 7 August 2026 and the fourth quarterly update deadline is 7 May 2027. The final tax return submission for that year is due by 31 January 2028. That final submission is where other income, claims, reliefs, allowances, and final adjustments need to be dealt with. The quarterly updates help build the picture, but they do not replace the final tax return.
Common MTD mistakes to avoid
MTD may feel new, but the core habits are familiar: keep records, review figures, use suitable software, and do not leave everything until the last minute.
Avoid these mistakes
- Leaving three months of records until the deadline week
- Assuming the software has captured everything correctly
- Forgetting nil submissions
- Thinking quarterly updates are final tax returns
- Ignoring other income sources until too late
- Missing the final tax return after the fourth update
- Using digital tools without reviewing the figures
Why good digital records matter
Good record keeping makes Making Tax Digital much easier. If income and expenses are captured regularly, quarterly updates become part of the business routine rather than a last-minute scramble. Digital records also help beyond compliance. They can support better cash flow planning, clearer tax estimates, and more confident business decisions. Software matters, but it should still be value for money and suitable for the business. Our episode on Stop the Software Tax: The Hidden Cost of Making Tax Digital looks at the cost side of preparing for MTD. If you need help preparing for MTD, there is a useful Making Tax Digital webinar available. If you need support setting up a digital bookkeeping system, our Xero accounting support can also help.
Practical steps to prepare for MTD
- Check whether MTD applies to your self-employment or property income
- Choose software that works with Making Tax Digital
- Set up digital records before the first update deadline
- Record income and expenses consistently
- Review figures before submitting updates
- Put the quarterly deadlines into your calendar
- Plan for the final tax return after the fourth update
- Get support early if the software or process feels unclear
Related episodes
- Stop Waiting for HMRC: Prepare for Making Tax Digital Today
- Stop the Software Tax: The Hidden Cost of Making Tax Digital
- Tax basics for self employed: What You Need to Know
Key takeaway
Making Tax Digital quarterly updates are regular summaries of business or property income and expenses. They are not tax returns, and they do not send every receipt or invoice to HMRC. The best way to stay ready is to keep digital records, understand the deadlines, review the figures, and treat MTD as part of your normal business routine. Plan it, Do it, Profit.
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Episode Timecodes
- 00:00 – What Making Tax Digital quarterly updates cover
- 01:00 – What quarterly updates are and who sends them
- 02:00 – What HMRC receives and why nil submissions matter
- 03:00 – Tax estimates after submitting an update
- 04:00 – Other income sources and final tax return details
- 05:00 – Quarterly update deadlines and standard periods
- 06:00 – Calendar periods and the final tax return deadline
- 07:00 – Common MTD mistakes and record-keeping habits
- 08:00 – Webinar support, digital systems, and final thoughts
About the Podcast
The I Hate Numbers podcast helps business owners understand accounting, tax, finance, profit, cash flow, and business planning in a practical way. We simplify financial topics so you can make better decisions and feel more confident with your numbers. You can also watch more practical finance and tax support on the I Hate Numbers YouTube channel, or listen and follow on Apple Podcasts.
Further Support
📘 Book https://www.ihatenumbers.co.uk/i-hate-numbers-book/ 🎧 Podcast https://www.ihatenumbers.co.uk/i-hate-numbers-podcast/ 🌐 Website https://www.ihatenumbers.co.uk
Transcript
Welcome to this week's episode of I Hate Numbers. In this week's episode, we're going to be looking at something first announced back in 2015, fast-forward 11 years, and it's going to be a reality in a few weeks' time. And that reality is Making Tax Digital first quarterly update. In this week's episode, I'm going to be looking specifically at Making Tax Digital quarterly updates.
::I'm going to call it MTD for short, by the way. We're going to cover what quarterly updates actually are, what information gets sent across to HMRC, why these updates are not actually your tax returns, the key deadlines, what happens after you send an update, and what you need to do after your fourth quarterly update.
::There are actually five in total, but let's crack on.
::If making tax digital or MTD feels confusing or overwhelming, don't worry. By the end of this podcast, you're going to have a clearer understanding of what's expected and how to stay on top of your reporting obligations. Now firstly, what are quarterly updates? Well, let's begin with the basics. Under MTD, compatible software collects information from your digital records and creates a summary every three months.
::Now, these summaries are referred to as quarterly updates. They are sent to HMRC using approved software, but more importantly, they are not tax returns. They are simply a snapshot of your income and expenses during the reporting period. Now, if you're a self-employed individual, a landlord, or have a combination of property and business income, you'll need to submit a quarterly update for each qualifying business activity.
::One important point to remember is that you do not need to make year-end accounting adjustments before submitting these updates. The figures are simply a summary of the records you've captured so far. A common concern that I hear often is will HMRC see every individual receipt, every bill, every invoice?
::The short answer is no. Your software will send totals for income and expense categories, not the underlying individual documents behind them. HMRC receives summary figures rather than every single transaction you've captured that you've recorded. The categories used, by the way, are the same categories currently used under self-assessment rules.
::That means you will be sending an overview of your business finances, not every piece of paperwork. Think of it like an executive summary to a full report. Even if you've had no income or expenses during a period, you will still need to send the update. It will just be a nil submission. Now, why do quarterly updates matter?
::Well, the purpose behind MTD updates is to give taxpayers a clearer view of their tax position throughout the year. Instead of waiting until after the tax year finishes, you'll be able to see an estimate of your tax position based on information already submitted. Now, this can be particularly useful if you're a freelancer managing irregular income, a creative business with seasonal earnings, a landlord who's got property income that may not be consistent throughout the year.
::Better information usually leads to better planning, and better planning means fewer nasty surprises. As a heads-up, by the way, you should be ideally putting money away during the course of the year every time you invoice a client, every time you receive money, put a percentage away to cover your tax bill anyhow.
::What happens after you make the submission? Once you've sent your update, you can view an estimated tax calculation through your software or the HMRC online account. HMRC may also include other information that it holds. So for example, if you're paying back a student loan or a post-grad loan, that information should be included when producing your estimate.
::Now remember, estimates are only as good as the information available. If you've got income sources that haven't been included yet, the estimate may not be completely accurate. Now remember, fundamentally, the MTD quarterly updates refer to self-employed income that you have and/or any property income as an individual landlord.
::It's not unusual for people to have more than one source of income. So you may have self-employed income and property income, but you may also have interest on savings, employment income, and depending on your software, you may be able to record some of these additional income sources during the course of the year.
::That's going to help you create a more complete picture of your tax affairs. Now, if your software doesn't allow it, or you choose not to add these details during the year, so it's optional, you need to include them though before you submit your final tax return. Quarterly update deadlines. Now, most things in tax always will have deadlines attached to them, and if you fail to meet those deadlines, there are consequences typically as well, and those consequences are penalties.
::Now, as a heads-up, by the way, folks, HMRC have said in the first year of the MTD implementation, there will be no penalties levied for failing to meet the deadlines. Doesn't mean you shouldn't do them. You need to get into the swing. Now let's turn to the dates. Now, for taxpayers using standard reporting periods, the deadlines are quarter one, 6th of April to the 5th of July, deadline for submission 7th of August.
::Quarter two, 6th of April to 5th of October, deadline for submission 7th of November. Quarter three, 6th of April to 5th of January, deadline 7th of Feb. And lastly, quarter four, 6th of April to 5th of April, deadline 7th of May following the end of the tax year. Now, if you notice, by the way, all those quarters start with the 6th of April.
::That's because each quarterly update that you submit is an accumulation of what's gone on before. So you're not correcting previously filed updates. The adjustments will be reflected in the next quarterly update that's being made. Now, there is a calendar quarter option using April, June, September, December, and March period ends, but the deadlines will remain the same.
::The good news is you can submit earlier. You don't have to wait until the deadline day. You can submit any time after the update period ends, and in certain situations, you can even submit up to ten days before the period end if no further transactions are expected. Now, if we overlay some dates, the first deadline date is the 7th of August, 2026.
::The last deadline date is 7th of May, 2027. And that means if you are in that MTD timetable, your tax return, which will be effectively a fifth submission, will need to be submitted by the 31st of January, 2028. Get those calendar dates structured in. Put them into your Outlook or your Google Doc. Other calendars do apply.
::Now, there are going to be common mistakes that will be made by people. It's the first year of implementation. Some of our clients had a go at the pilot, were enrolled in that pilot, so they've got some familiarity. If you haven't, the key thing is not to get overanxious. So typically, my advice would be: don't leave the record keeping until the last minute.
::Trying to remember three months of transactions is difficult. Go digital. It's an essential. You can use spreadsheets with bridging software, or you can use software that will capture that. But that's also going to help you in your business, so don't think of it just as a compliance exercise. Capture everything.
::Technology is powerful, but it doesn't replace your brain. Mistakes will happen. Review your figures before submissions. So, let's have a bit of a recap here, folks. Making tax digital quarterly updates are not tax returns. They're quarterly summaries of your business and or property income and expenses.
::They will help provide a clearer picture of your tax position through the year. Good record keeping, timely submissions, and understanding your deadlines makes the process much easier. And as with most things in business, it's consistency that's the key. Keeping good records are fundamental, even if we didn't have MTD.
::Review them regularly, and don't leave things if you can to the last minute. Now, I hope you found this episode useful. I'd love it if you could share that episode, and by all means, please do subscribe to the feed. There's a link provided in the show notes. There's a webinar we recorded on MTD, and if you need help setting up a digital system that's going to be easy to manage, effective, and efficient, and value for money, then give us a shout.
::Until next time, folks.
