A quarterly update is the summary of business income and expenses that a sole trader or landlord sends to HMRC every three months under Making Tax Digital for Income Tax. It is sent from software and is not a tax return.
The periods and deadlines
| Update period | Due by |
|---|---|
| 6 April to 5 July | 7 August |
| 6 July to 5 October | 7 November |
| 6 October to 5 January | 7 February |
| 6 January to 5 April | 7 May |
You can choose calendar quarters instead, so that the periods end on 30 June, 30 September, 31 December and 31 March. The deadlines stay the same.
What goes in it
A quarterly update gives totals of income and expenses by category, taken from your digital records. Each update is cumulative: it covers the tax year to date, so a correction to an earlier quarter is picked up automatically in the next one. You send a separate update for each self-employment and for your property income.
No tax is paid with an update and no accounting adjustments are needed. Those are dealt with at the year end, before the final declaration.
Read more: Sending quarterly updates.