One of the most common questions about Making Tax Digital is: what do I actually put in a quarterly update? The answer is simpler than most people expect. A quarterly update is not a tax return — it is a summary of income received and allowable expenses paid during the quarter. Your HMRC-approved software sends this automatically to HMRC via API. Here are real worked examples for the most common taxpayer situations.
A quarterly update contains two pieces of information for the quarter:
You do not submit individual invoices, individual receipts, or any calculations of tax owed. The quarterly update is purely income and expense totals. Your software sends it to HMRC automatically once you confirm the figures.
James is a self-employed plumber. For Q1 (6 April – 5 July 2026), his records show:
| Item | Amount | Category in software |
|---|---|---|
| Customer invoices paid | £18,400 | Self-employment income |
| Materials and supplies | £3,200 | Cost of goods sold |
| Van running costs (fuel, insurance) | £980 | Motor expenses |
| Tools and equipment | £340 | Equipment / capital |
| Phone (75% business use) | £75 | Office costs |
| Public liability insurance | £180 | Insurance |
James logs into his software, confirms these figures are correct, and clicks "Submit quarterly update." His software sends the totals to HMRC via API. The submission takes under 60 seconds. He receives an HMRC confirmation reference number.
What HMRC receives: Income £18,400 | Total expenses £4,775 | Net profit (indicative) £13,625. No tax calculation — that happens in the Final Declaration.
Sarah owns two buy-to-let properties. For Q1 (6 April – 5 July 2026):
| Item | Amount | Category |
|---|---|---|
| Rental income received (Property 1) | £3,200 | UK property income |
| Rental income received (Property 2) | £2,400 | UK property income |
| Letting agent fees | £560 | Professional fees |
| Boiler repair (Property 1) | £380 | Repairs and maintenance |
| Buildings insurance (both) | £290 | Insurance |
| Mortgage interest | £1,800 | Loan interest (restricted to 20% tax credit) |
Total rental income: £5,600. Total expenses (excluding mortgage interest, which is handled separately): £1,230. Sarah's software consolidates both properties into a single quarterly update submission — HMRC sees the combined UK property income and expenses.
For a taxpayer with both self-employment and property income, the software submits two separate quarterly updates in the same period — one for each income source. Each is submitted and confirmed separately, though most software handles both with a single "Submit" action.
| Quarter | Period covered | Deadline | 2026–27 |
|---|---|---|---|
| Q1 | 6 April – 5 July | 7 August | 7 August 2026 — first ever deadline |
| Q2 | 6 July – 5 October | 7 November | 7 November 2026 |
| Q3 | 6 October – 5 January | 7 February | 7 February 2027 |
| Q4 | 6 January – 5 April | 7 May | 7 May 2027 |
After each quarterly update, HMRC shows you a running tax estimate in your HMRC online account — this is an estimate only, based on the income and expenses submitted so far in the year. It does not account for personal allowances, pension contributions, or other reliefs that are applied in the Final Declaration.
The Final Declaration at the end of the year (due 31 January 2028 for 2026–27) is where your actual tax liability is calculated and settled.
No. A quarterly update is income and expense totals only — not individual transactions. You keep digital records of each transaction in your software, but you only submit the totals to HMRC.
You can include missed expenses in a later quarter update, or correct them at Final Declaration. The quarterly updates are not locked — adjustments are possible throughout the year and at the final declaration stage.
You must actively confirm and submit each quarterly update in your software. It does not happen automatically. Most software sends you a reminder when a deadline approaches.
You must still submit a nil quarterly update if you are registered for MTD, even if you had no income or expenses in that quarter. A nil return is submitted the same way — your software sends zeros to HMRC.
No. The quarterly update generates a running tax estimate in your HMRC account, but no payment is required at that stage. Your actual tax bill is calculated and due after your Final Declaration — by 31 January following the tax year end.