Quarterly updates for Making Tax Digital for Income Tax

What are quarterly updates for MTD for Income Tax?

From April 2026, those who must comply with Making Tax Digital for Income Tax (MTD for IT) will have to submit quarterly updates to HMRC.

Alongside quarterly updates, taxpayers will also need to send HMRC a Final Declaration. This replaces the yearly income tax return and forms part of the government’s plan to digitise the tax system. For this article, we’ll be focusing on quarterly updates.

Who needs to send quarterly updates under MTD for IT?

Landlords and self-employed people earning above £50,000 annually will need to comply with MTD rules from April 2026. This means they’ll need to send quarterly updates to HMRC via compatible software.

What information is included in quarterly updates?

Your quarterly updates should contain details of income and expenditure. That includes things like sales of goods and services, and money spent on business equipment or subscriptions. MTD compatible software will add these records together for you, so you have sum totals of income and expenditure for each quarter. You might also need to make accounting or tax adjustments, but this can be done before or after the update is sent. Quarterly updates are cumulative, which means you can make adjustments to a previous update in your next one.

Why are quarterly updates needed?

Quarterly updates require less information than a single annual return. They also demonstrate that the taxpayer is keeping their records up to date regularly. What’s more, taxpayers can receive an estimate based on their reported income of the tax they’ll need to pay, so they’ll have more time to prepare for their bills.

How do you send quarterly updates for MTD for Income Tax?

You can send quarterly updates to HMRC via MTD-compatible software. Providing your records are kept up to date, your accounting software will help you pull together the information required.

Who can submit quarterly updates for MTD for IT?

You or your accountant or bookkeeper can submit your quarterly updates for MTD for IT. If you’d like your accountant or bookkeeper to submit quarterly updates on your behalf, you’ll need to authorise them to do so. Contact your advisor, or your accounting software provider for more information.

When will you need to send quarterly updates for MTD for IT?

You have a month after the period end date to send your quarterly update. These updates are cumulative over the tax year – so you can correct errors or make adjustments to previous submissions in your next update.

Quarterly update 1:

Period covered: 6 April to 5 July

Filing deadline: 7 August

Quarterly update 2:

Period covered: 6 April to 5 October

Filing deadline: 7 November

Quarterly update 3:

Period covered: 6 April to 5 January

Filing deadline: 7 February

Quarterly update 4:

Period covered: 6 April to 5 April

Filing deadline: 7 May

What are the penalties for late or incorrect submissions?

MTD for IT is subject to the same penalty points system as MTD for VAT. For every filing deadline missed, you'll accrue one penalty point. Once you reach a certain points threshold, you'll receive a £200 fine. For MTD for IT, the penalty points threshold is four points. Penalties are also in place for late MTD for IT payments. If tax is unpaid after 15 days, you'll pay 3% on the outstanding amount. If any of this tax is still unpaid after day 30, you'll pay 3% on the outstanding amount after 15 days, plus 2% on the outstanding amount at day 30. And, if there's still tax left to pay after day 31, you'll be subject to an additional penalty that accrues on a daily basis, at 10% per year on the outstanding amount. If paying your income tax bill is a struggle, you can contact HMRC to set up a repayment plan.

What about the ‘Final Declaration’?

Your Final Declaration is where you need to disclose other forms of income, such as investment or savings, and submit any claims for relief. Your Final Declaration is due on 31 January, along with payment.

HMRC quarterly update FAQs

How long does it take HMRC to update payments?

Currently, it can take up to seven days for a digital or online payment to show in your HMRC account. HMRC is yet to confirm how long payments take to register for MTD for IT. But, it's best to make your payment as soon as you can, so that it reaches HMRC ahead of the deadline.

What are the quarter days for HMRC?

The four standard quarterly update periods for MTD for IT are:

• 6 April - 5 July (to be submitted by 5 August)
• 6 July - 5 October (to be submitted by
• 6 October - 5 January
• 6 January - 5 April

You can also choose to use calendar year update periods. This could be helpful if your accounting year doesn't align with the tax year. The calendar quarters are:

• 1 April - 30 June
• 1 July - 30 September
• 1 October - 31 December
• 1 January - 31 March

You'll still need to submit quarterly updates by the same deadline as the standard periods.

How long does it take for HMRC to update tax overview?

It can take up to an hour for HMRC to register a quarterly update or Final Declaration submission. For the current self assessment system, it can take HMRC three days to update your tax overview.

How does HMRC notify you of a tax refund?

If you think you've overpaid tax, use HMRC's tool for checking how to claim a tax refund. In your online self assessment account, select 'request a repayment'. If you don't have an online account, you'll either need to set one up or contact HMRC. You'll normally receive your refund within two weeks. If you don't receive your refund, give it four weeks before reaching out to HMRC.

Prepare for MTD for IT

Talk to your accountant or bookkeeper about signing up for MTD for IT. The more time you spend getting used to new digital tools, the easier you’ll find the transition to Making Tax Digital.

You can keep up to date with the latest on MTD by bookmarking our Making Tax Digital resource hub and MTD for IT page.