Last reviewed: 7 September 2026.
Quarterly updates are one of the biggest changes introduced by Making Tax Digital for Income Tax. They give HMRC summary information from digital records during the tax year, but they are not four full tax returns and do not create four separate tax bills.
If you need help setting up the process, Digivolve provides MTD for Income Tax support for sole traders and landlords.
What is an MTD quarterly update?
A quarterly update is a summary of income and expense information for each relevant business, sent to HMRC through compatible software. The figures come from the digital records maintained for that business during the period.
Who must send quarterly updates?
Quarterly updates form part of MTD for Income Tax for affected sole traders and landlords. From 6 April 2026, the rules apply where qualifying income from self-employment and property is more than £50,000, subject to eligibility rules and exemptions. Further thresholds are scheduled for later years.
What records sit behind the update?
Businesses should digitally record income and expenses. Depending on the activity, this may include sales, rents, bank transactions, supplier costs, mileage, use of home, agent statements and other allowable expenses. The aim is to maintain records during the year rather than reconstruct them at year end.
Are quarterly updates the same as quarterly accounts?
No. A quarterly update is a submission required by MTD. Management accounts are a more detailed business report used to understand profitability, cash flow and performance. Good bookkeeping can support both, but they serve different purposes.
Must every figure be perfect each quarter?
HMRC describes the updates as summaries generated from digital records. Records should be kept accurately and corrected when errors are identified. Year-end work is still needed to finalise adjustments, claims and the tax return.
Do you pay Income Tax every quarter?
No new quarterly Income Tax payment cycle is created merely by submitting updates. The tax return and tax due are normally dealt with by 31 January following the tax year. Existing Self Assessment payments on account may still be payable.
What happens after the fourth update?
The records are reviewed and finalised after the tax year. Adjustments and other tax-return information are then included before the return is submitted through compatible software. MTD does not remove the need to complete the wider tax-return process.
Can an accountant send the updates?
Yes. An authorised agent can manage digital records and submissions. You still need a reliable way to provide invoices, receipts, bank information and answers to queries throughout the year.
A practical quarterly routine
- Connect and reconcile relevant bank feeds.
- Upload invoices, receipts and agent statements regularly.
- Review uncategorised and personal transactions.
- Check income completeness.
- Review unusual or high-value expenses.
- Send the quarterly update through compatible software.
- Correct records promptly if further information appears.
Start before the deadline
The main risk is not the submission button; it is incomplete digital records. Setting up software, bank feeds, property or business categories and agent authorisation early makes the quarterly process far more manageable.
Use our 2026 MTD checklist, explore our Making Tax Digital services, or contact Digivolve.
Official guidance
Refer to the current HMRC Making Tax Digital guidance. This guide is general information and is not personal tax advice.