Quarterly Updates Explained

Key facts

Under MTD for ITSA, you must submit four quarterly updates per year summarising your income and expenses.
Standard quarters run 6 Apr–5 Jul, 6 Jul–5 Oct, 6 Oct–5 Jan, 6 Jan–5 Apr.
Each update is due by the 5th of the second month after the quarter ends (e.g. Q1 due by 5 September).
You can elect to use calendar quarters instead of standard tax-year quarters.
Quarterly updates are cumulative summaries, not full returns — detailed figures come in the final declaration.

What Are Quarterly Updates?

Under Making Tax Digital for Income Tax Self Assessment (ITSA), you must send HMRC a summary of your business income and expenses four times a year. These are called quarterly updates.^[1]

Quarterly updates replace the old system of waiting until after the tax year to compile everything for a single annual return. The idea is that you keep your records up to date throughout the year and submit periodic summaries, so both you and HMRC have a clearer picture of your tax position in real time.

Standard Quarterly Periods

The standard quarterly periods align with the UK tax year (6 April to 5 April):^[1]

Quarter	Period Start	Period End	Submission Deadline
Q1	6 April	5 July	5 September
Q2	6 July	5 October	5 December
Q3	6 October	5 January	5 March
Q4	6 January	5 April	5 June

The deadline is always the 5th day of the second month after the quarter ends. This gives you approximately two months to compile and submit each update.

Calendar Quarter Election

If calendar quarters are more convenient for your business, you can elect to use them instead:^[1]

Quarter	Period Start	Period End	Submission Deadline
Q1	1 April	30 June	5 September
Q2	1 July	30 September	5 December
Q3	1 October	31 December	5 March
Q4	1 January	31 March	5 June

You make this election through your MTD software. Calendar quarters can be useful if you also submit VAT returns on calendar quarters, as it aligns your reporting periods.

What to Include in a Quarterly Update

A quarterly update contains summarised totals of your income and expenses for the period. Specifically:^[1]

Total income for the quarter — broken down by category (e.g. sales, professional fees, rental income)
Total expenses for the quarter — broken down by category (e.g. premises costs, travel, staff costs, office supplies)

Summaries, not transactions: You submit totals by category, not individual transactions. However, your underlying digital records must contain the individual transactions in case HMRC queries your figures.

The categories align with the boxes on the existing Self Assessment tax return. Your MTD software will map your transactions to the correct categories automatically.

How to Submit a Quarterly Update

The process is straightforward if you maintain your records in MTD-compatible software:

Step 1: Record your income and expenses in your software as they happen throughout the quarter
Step 2: At the end of the quarter, review the summary your software generates
Step 3: Submit the quarterly update to HMRC through your software — typically a single button click
Step 4: HMRC acknowledges receipt and may provide an estimated tax calculation

If you use GoFile, the process is guided — the software tells you when an update is due and walks you through submission. Try it free.

Multiple Income Sources

If you have both self-employment income and property income, you submit separate quarterly updates for each source:^[2]

One set of quarterly updates for your self-employment business
One set of quarterly updates for your property income

If you have more than one business, you submit separate updates for each. Your software handles this and keeps the income sources separate.

Amending Quarterly Updates

Quarterly updates are not set in stone. You can amend them through your software at any time up until the final declaration deadline (31 January following the end of the tax year).^[1]

This is important because:

You may receive late invoices or discover missed expenses
Bank reconciliation may reveal errors
Year-end adjustments (e.g. for accruals or prepayments) may change quarterly figures

The quarterly updates are provisional summaries. Your final, definitive figures are confirmed in the final declaration.

Tip: Don’t worry about perfection in your quarterly updates. They are designed to be “best estimates” at the time. Submit on time and correct later if needed — it is better to submit an approximate update by the deadline than to submit a perfect one late.

In-Year Tax Calculation

After each quarterly update, HMRC may provide an estimated tax calculation. This shows your approximate tax liability based on the information submitted so far.^[1]

This is one of the main benefits of quarterly updates — rather than waiting until after the year end to discover a large tax bill, you get an ongoing estimate that helps with cash-flow planning.

Frequently Asked Questions

What is a quarterly update?

A quarterly update is a summary of your business income and expenses for a three-month period, submitted to HMRC through MTD-compatible software. It gives HMRC (and you) an in-year picture of your tax position.

Do I need to submit every single transaction?

No. A quarterly update is a summary of totals by category (e.g. total sales income, total travel expenses) for the quarter. You do not submit individual receipts or invoices, but you must keep the underlying digital records.

What happens if I miss a quarterly update deadline?

Late submissions earn penalty points under HMRC’s points-based penalty system. Once you reach the threshold (currently 4 points for quarterly obligations), each subsequent late submission incurs a £200 penalty.

Can I amend a quarterly update after submitting it?

Yes. You can amend a quarterly update through your software up until the final declaration deadline. Corrections are encouraged — the quarterly updates are provisional summaries, not final figures.

Sources

Using Making Tax Digital for Income Tax — GOV.UK
Making Tax Digital for Income Tax Self Assessment — GOV.UK
Overview of Making Tax Digital — GOV.UK