Do I pay tax with each quarterly update?

No. Quarterly updates are just summaries of your income and expenses. You do not pay any tax until you submit your final declaration, and HMRC calculates the tax you owe.

What if I miss a quarterly update?

If you miss a deadline, you should submit the update as soon as possible. HMRC may charge a late filing penalty, but the amount depends on your circumstances. It is best to keep to the deadlines.

Can I change to calendar quarters?

Yes, you can elect to use calendar quarters instead of the standard tax quarters. You must make the election before the start of the tax year, and it will apply for that year.

MTD for Income Tax: quarterly update deadlines explained

Under MTD for Income Tax, you send HMRC a quarterly update of your income and expenses. The standard quarters run 6 April–5 July, 6 July–5 October, 6 October–5 January and 6 January–5 April, each due by the 7th of the following month: 7 August, 7 November, 7 February and 7 May. A final declaration follows by 31 January.

Who must send quarterly updates

Making Tax Digital for Income Tax (MTD for ITSA) is being phased in. You must follow its rules if you are a sole trader or landlord with gross income over £50,000, mandated from April 2026. The threshold drops to £30,000 from April 2027. If you are below these thresholds, you are not required to use MTD yet, but you can volunteer.

The four quarters and their deadlines

Under MTD for Income Tax, your tax year is divided into four standard quarters. Each quarter ends on the 5th of a month, and you have until the 7th of the following month to submit your update. The deadlines are:

Quarter 1: 6 April to 5 July – due by 7 August
Quarter 2: 6 July to 5 October – due by 7 November
Quarter 3: 6 October to 5 January – due by 7 February
Quarter 4: 6 January to 5 April – due by 7 May

These dates are fixed, regardless of weekends or bank holidays. You must submit each update even if you have no income or expenses in that quarter.

Calendar quarters election

You can choose to align your quarterly updates with calendar quarters instead of the standard tax quarters. This means your quarters end on 31 March, 30 June, 30 September and 31 December. The deadlines are then the 7th of the following month: 7 April, 7 July, 7 October and 7 January. You must elect to use calendar quarters before the start of the tax year, and the election applies to all your updates for that year.

What goes in a quarterly update

Each quarterly update is a summary of your income and expenses for that period. You report the totals, not individual transactions. You do not pay tax with each update – it is just a way to keep HMRC informed throughout the year. You should include all business income and allowable expenses, but you do not need to calculate your tax liability at this stage.

Corrections and the final declaration

If you spot an error in a quarterly update, you can correct it in a later update or in your final declaration. The final declaration is your end-of-year statement, where you confirm your total income and expenses for the whole tax year. This is due by 31 January following the end of the tax year. At this point, you also submit your other tax information, such as personal allowances and reliefs, and HMRC calculates your final tax bill.

How TaxCheckIt handles it

TaxCheckIt is built to make MTD for Income Tax straightforward. The software tracks your income and expenses, works out your quarterly totals, and reminds you when each deadline is approaching. You can submit your updates directly to HMRC through the software, and it will help you prepare your final declaration. See our pricing for plans that include MTD support. If you are new to MTD, you might also want to read our guide to Making Tax Digital or check what a UTR number is for.