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.
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