MTD quarterly updates: dates, deadlines and what to send

In short: MTD quarterly updates are cumulative reports of income and expense totals for each business, not transaction-by-transaction filings or final tax calculations. Standard quarters and calendar-quarter elections use the same deadlines: 7 August, 7 November, 7 February and 7 May, followed by the final declaration due 31 January (GOV.UK: Send quarterly updates under Making Tax Digital).

When are MTD quarterly updates due?

MTD quarterly updates are due on the same four dates — 7 August, 7 November, 7 February and 7 May — whether you use standard tax-year quarters or elect for calendar quarters. Under Making Tax Digital, the election must be chosen in software before the year's first update.

These deadlines apply to each quarterly update. The final declaration is separate and is due by 31 January after the tax year ends.

What goes in a quarterly update?

A quarterly update contains totals of income and expenses by category for each business, not individual transactions. If turnover is under the £90,000 VAT threshold, HMRC allows total income and total expenses instead, except residential finance costs, which are always reported separately (GOV.UK: Digital record-keeping rules for Making Tax Digital).

Joint landlords may report only their share of income quarterly, with expenses as a single annual figure rather than quarterly. For property-specific rules, see MTD for landlords.

What if you make a mistake?

You correct a mistake by including the corrected year-to-date totals in the next cumulative quarterly update. HMRC says the updates are cumulative, so a mistake in Quarter 1 is simply corrected in Quarter 2 and does not require a resubmission (GOV.UK: Send quarterly updates under Making Tax Digital).

This is one reason to review the totals before sending. The update is not a final tax calculation, but it should still reflect your records as accurately as possible.

Should you choose calendar quarters?

You should choose calendar quarters if month-end bookkeeping fits your records better than 6 April to 5 April tax-year quarters. The election is made in software before the first update of the year, and both systems keep the same filing deadlines.

Calendar quarters may suit landlords and sole traders who already organise accounts by calendar month. Standard quarters may suit anyone who prefers the exact tax-year pattern.

What happens at year end?

At year end you submit a final declaration by 31 January after the tax year ends. For mandated taxpayers, the final declaration replaces the Self Assessment return, while tax payment deadlines remain unchanged: the balancing payment is still due on 31 January, and payments on account on 31 January and 31 July.

Missing update or final declaration deadlines can trigger penalties; see MTD penalties: what happens if you miss a deadline?.

How can Taxley help with MTD quarterly updates?

Taxley's Making Tax Digital service for sole traders and landlords isn't available yet, so you can't use Taxley to keep MTD records or send quarterly updates today. We're building it to cover digital records, manual entry or CSV import, quarterly updates you review before sending, and the final declaration, for self-employment and UK and foreign property income.

Until it opens, send your quarterly updates with a product from HMRC's list of MTD-compatible software. The MTD Income Tax page shows our progress.

Frequently asked questions

Are MTD quarterly update deadlines different for calendar quarters?

No. Calendar-quarter elections use different period dates — 1 April to 30 June for Quarter 1, for example, instead of 6 April to 5 July — but the same deadlines: 7 August, 7 November, 7 February and 7 May.

Do I send every transaction to HMRC each quarter?

No. Quarterly updates contain income and expense totals by category for each business, not individual transactions. If turnover is under the £90,000 VAT threshold, total income and total expenses may be sent instead, with residential finance costs always reported separately (GOV.UK: Digital record-keeping rules for Making Tax Digital).

Can I fix an error from an earlier update?

Yes. MTD updates are cumulative, so you correct the next update's year-to-date totals. A Quarter 1 mistake can be corrected in Quarter 2 without resubmitting Quarter 1.

When is the MTD final declaration due?

By 31 January after the tax year ends. For mandated taxpayers it replaces the Self Assessment return, but tax payment deadlines are unchanged: the balancing payment is due on 31 January and payments on account on 31 January and 31 July.

When must the calendar-quarter election be made?

Before the first quarterly update of the tax year, and it is made in your MTD software. Both systems keep the same deadlines, so the choice changes your period dates, not when updates are due (GOV.UK: Send quarterly updates under Making Tax Digital).