What is a quarterly update?

A quarterly update is the summary of your business income and expenses that HMRC now wants four times a year under Making Tax Digital (MTD) for Income Tax. If you’re a landlord or sole trader above the income threshold, it’s the main new job MTD gives you.

What it is, and what it isn’t

It IS a running summary: your income and expense totals for the tax year so far, grouped into HMRC’s categories (rent, repairs, travel and so on). It is NOT a tax return. No tax is calculated, nothing is final, and small mistakes can be corrected in the next update. The final numbers get settled once a year, in the final declaration, the way January’s Self Assessment used to work.

When are quarterly updates due?

• Quarter 1 (6 April – 5 July): file by 7 August
• Quarter 2 (6 July – 5 October): file by 7 November
• Quarter 3 (6 October – 5 January): file by 7 February
• Quarter 4 (6 January – 5 April): file by 7 May

What happens if you miss a quarterly update?

In the 2026-27 tax year, nothing: HMRC isn’t issuing penalty points for late quarterly updates in the first year. From later years, a late update earns a penalty point, and four points bring a £200 penalty. The year-end final declaration gets no such easing, in the first year or after: a late one earns a penalty point, and interest runs on unpaid tax from the first day. There is more in MTD penalties, plainly. Put the four dates in your calendar either way: the deadlines page has a one-click calendar download.

How long does it actually take?

If your records are already digital, minutes. The work isn’t the update itself: it’s having your transactions recorded and categorised. Do that as you go (or import your bank statement once a quarter) and the update is a review-and-press-file job.

What if a quarter had nothing in it?

Quiet quarters happen: a rental empty between tenants, a trade having a slow three months. The update is still due, because HMRC wants to hear “nothing this quarter” too. A quarter with even one transaction files normally in QuarterFile. An update with nothing in it goes through support today: email support before the deadline and we’ll get it sorted with you.

Next: put the four dates in your calendar from the deadlines page, then read how to file your first quarterly update.