Are MTD Quarterly Updates Four Extra Tax Returns?
No. Making Tax Digital for Income Tax does not add four extra tax returns to your year. An MTD quarterly update is a summary produced from your digital records, and the annual tax return is still required.
Key Takeaways
- Quarterly updates are summaries produced from your digital records, not separate tax returns.
- An update is required every three months for each relevant self-employment and property business.
- HMRC receives totals for the required income and expense categories, not individual invoices or receipts.
- Each update is cumulative from 6 April to the end of the relevant update period.
- Accounting or tax adjustments do not have to be made before an update is sent.
- Corrections to the digital records can be reflected in a later update.
- An update is still required where no income or expenses occurred during the update period.
- An estimated tax bill can be viewed after submission through compatible software and HMRC online services.
- Quarterly updates do not replace the annual tax return.
Want Your Quarterly Updates Handled For You?
We keep the digital records, send each quarterly update on time and make sure nothing is missed before your tax return is submitted.
What Is an MTD Quarterly Update?
A quarterly update is a summary of the business income and expenses held in your digital records for a three-month period, produced by MTD-compatible software. HMRC receives totals for the required income and expense categories, not individual invoices or receipts.
An update is required every three months for each relevant self-employment and property business. Each update is cumulative: it covers the period from 6 April to the end of the relevant update period and shows tax-year-to-date income and expenses for that business.
The requirements sit in the Income Tax (Digital Obligations) Regulations 2026, which require compatible software to be used to create and preserve business records digitally and to send quarterly updates of income and expenses to HMRC. Accurate digital bookkeeping is what makes those updates straightforward.
When Are MTD Quarterly Updates Due?
For 2026/27 the HMRC-confirmed quarterly update deadlines are:
- 7 August 2026
- 7 November 2026
- 7 February 2027
- 7 May 2027
HMRC states that there are no penalties for missing a quarterly update deadline for 2026/27. Digital records must still be kept, and the quarterly updates must still be sent, before the tax return can be submitted.
That no-penalty treatment is specific to 2026/27 and should not be assumed to apply automatically to later tax years.
Do Accounting or Tax Adjustments Have to Be Made First?
No. HMRC says accounting or tax adjustments do not have to be made before a quarterly update is submitted. An update does not have to wait for year-end adjustments, capital allowances or private-use calculations to be finalised.
How Are Corrections Handled?
Corrections are made to the underlying digital records and can be reflected in a later quarterly update. Figures that were coded incorrectly flow through in a subsequent update, rather than needing to be sent as a separate correction.
What if There Was No Income or Expenses?
A quarterly update is still required where no income was received and no expenses were incurred during the update period. A quiet quarter is a submission, not an exemption.
Can I See an Estimated Tax Bill?
Yes. HMRC says that after an update is submitted, an estimate of the tax due on the relevant self-employment and property income can be viewed through MTD-compatible software and HMRC online services. It is there for planning and setting money aside, not as a demand.
Do Quarterly Updates Replace the Annual Tax Return?
No. Quarterly updates do not replace the annual tax return. The return still has to be submitted and any tax due paid by the applicable deadline, which is what our Self Assessment service covers. Landlords reporting rental income will find the equivalent detail in Landlord Tax Returns.
If you are a sole trader who would prefer us to maintain the digital records behind your quarterly updates, see our Sole Trader Accounting and Bookkeeping Services.
Tax Myth Buster
Four quarterly updates plus the return means five tax returns a year.
A quarterly update is a summary of income and expense category totals from your digital records. It is not a tax return, and the annual tax return is still required.
Not Sure What Your Updates Should Include?
We handle the digital records behind each update, deal with quiet periods and corrections, and keep you clear on what HMRC does and does not receive.
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Need Help With MTD-Compatible Bookkeeping?
Accountant Bookkeeping Ltd supports sole traders and landlords with digital bookkeeping, record keeping and Making Tax Digital compliance.
