The quarterly update is the beating heart of Making Tax Digital — and the part most surrounded by myth. It is not a mini tax return. Nothing is due with it. Nobody rings you about it. It is a running digital summary of your business income and expenses, and once your records are clean it takes minutes.
Here is exactly how the cycle works: the dates, what is actually in an update, what happens when you find an error, and the traps (multiple businesses, the calendar-quarter election) that catch people in year one.
The Dates That Matter
| Quarter | Standard period | Deadline |
|---|---|---|
| Q1 | 6 April – 5 July | 7 August |
| Q2 | 6 April – 5 October | 7 November |
| Q3 | 6 April – 5 January | 7 February |
| Q4 | 6 April – 5 April (full year) | 7 May |
Notice the periods are cumulative — each update covers the tax year so far, not just the latest three months. If you prefer tidy month-ends, a calendar-quarter election lets you report 1 April – 30 June and so on; the deadlines stay identical. After Q4 you still prepare and submit one annual tax return through compatible software by 31 January, checking the full-year figures and adding other income, gains, reliefs and allowances. Payment dates do not move.
What Is Actually In an Update
Totals, not transactions. Your software sends HMRC the year-to-date sum of income and the sum of expenses by category for the business — the standard self-employment categories (cost of goods, wages, premises, motor, professional fees…) or the property equivalents. No receipts or narrative are sent. Any estimate shown by software is indicative and is not your final HMRC liability.
Behind those totals, though, you must hold transaction-level digital records — that is what makes the totals defensible if HMRC ever looks.
Corrections: The Cumulative Safety Net
Found a missed expense from May in November? Because every update is cumulative, you simply include the correction in your next update — the year-to-date figures overwrite what came before. There is no formal amendment process for a past quarter and no penalty for an honest figure revised later. The system is genuinely forgiving here; the discipline it does demand is that your records stay complete.
One Cycle Per Business
Updates are filed per income source. A sole trade is one source; all your UK rental property together is another; foreign property is separate. A consultant-landlord can therefore owe eight updates a year — two parallel cycles with the same four deadlines. HMRC will not apply quarterly-update penalty points for 2026–27, but every source's updates must still be sent before the tax return.
The Efficient Quarterly Routine
- Shortly after the quarter ends, download the quarter's bank statements (PDF or CSV).
- Convert them into structured data with BankScan AI if useful, then review the dates, amounts and suggested categories.
- Create or import the relevant records in compatible software. Manual entry from a source document may create the first digital record; digital-link rules apply if an existing record later moves between products.
- Check the cumulative category totals in the software and submit before the 7th.
A regular review routine is easier than reconstructing months of records near a deadline. The sole trader guide and landlord guide outline a practical rhythm.
Prepare a Quarter's Working Data
Upload supported statement formats, then review every extracted row and suggested category against the source before using the data in compatible software.
Start 7-day trial →Frequently Asked Questions
Do I pay tax with each quarterly update?
No. Updates carry information only — cumulative income and expense totals. You still submit a tax return and pay by the applicable 31 January deadline, with payments on account where relevant. Software estimates are indicative and are not your final HMRC liability.
What if I have no income or expenses in a quarter?
You still submit a nil or unchanged cumulative update. Quiet quarters do not remove the obligation. HMRC will not apply quarterly-update penalty points for 2026–27, but every update must still be sent before the tax return.
I made a mistake in a previous quarter — how do I fix it?
Correct the digital record in your software. Because each update is cumulative, the corrected year-to-date total can flow into the next update. Before submitting the annual tax return through compatible software, check the full-year figures and make any remaining adjustments.
Can I align quarters to calendar months?
Yes — the calendar-quarter election moves your periods to 1 April–30 June and so on, which suits businesses that reconcile at month-end. Deadlines are unchanged (7 August, 7 November, 7 February, 7 May). Choose once and stay consistent.
Do quarterly updates replace the tax return entirely?
No. The four updates are in-year summaries and do not replace the annual tax return. Employment income, dividends, reliefs, allowances and year-end adjustments are handled through the tax return due by the applicable 31 January deadline.
Last updated: 9 July 2026. This guide explains the Making Tax Digital rules as published by HMRC — always check GOV.UK for the latest official guidance. Read our digital record-keeping guide or browse all blog posts.